A corporate officer is liable to the corporation or its shareholders for a bad business decision.

Question

Quizplus · Accepted Answer

A corporate officer is generally not liable to the corporation or its shareholders for a bad business decision if the decision was made in good faith, with the care that a reasonably prudent person would use, and with the reasonable belief that the decision was in the best interests of the corporation. This is known as the "business judgment rule."

A Corporate Officer Is Liable to the Corporation or Its