The business judgment rule acts as a safe harbor when the duty of loyalty is being questioned.

Name: The business judgment rule acts as a safe harbor when the duty of loyalty is being questioned.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The business judgment rule primarily addresses the duty of care, protecting directors' decisions made in good faith, while the duty of loyalty deals with conflicts of interest and requires directors to act in the best interests of the corporation.

The Business Judgment Rule Acts as a Safe Harbor When