Under the Business Judgment Rule:

Question

Quizplus · Accepted Answer

The Business Judgment Rule requires that managers act in good faith and in the best interest of the company. They are expected to make decisions that are well informed and not influenced by personal interests. However, if their decisions end up causing harm to the company, the managers will not be held liable as long as they can prove that they made an informed decision and acted in good faith. Therefore, all three statements in the options are correct.