Corporate directors or officers will be liable to the corporation or to its shareholders for business decisions that lose the company money even if they are careful in making the decisions.

Question

Quizplus · Accepted Answer

Corporate directors or officers are generally protected by the "business judgment rule," which shields them from liability for business decisions that result in losses, as long as they acted in good faith, with due care, and within their authority.

Corporate Directors or Officers Will Be Liable to the Corporation