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Which of the Following Is True with Regard to Boards

Question 42

Multiple Choice

Which of the following is true with regard to boards of directors?


A) The courts judge the discharge of the obligations of directors according to a civil law standard referred to as the duty of care.
B) Under the business judgment rule, actions taken by the board are generally subject to judicial review.
C) Board members have legal obligations that generally fall into categories referred to as the duty of loyalty and the duty of care.
D) Directors cannot be held liable even when they do not exercise due care.

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