According to the business judgment rule,corporate directors and officers are liable to the corporation and its shareholders for even honest mistakes of judgment.

Question

Quizplus · Accepted Answer

The business judgment rule protects corporate directors and officers from liability for decisions made in good faith, as long as they acted with reasonable care, did not have a conflict of interest, and acted in the best interest of the corporation. They are not liable for honest mistakes of judgment as long as they followed these guidelines.

According to the Business Judgment Rule,corporate Directors and Officers Are