The business judgment rule:

Question

Quizplus · Accepted Answer

The business judgment rule is a legal principle that provides protection to directors and managers of a corporation who have made honest mistakes in judgment. It assumes that if the decision was made in good faith, with due care, and in the best interests of the corporation, then the court will not substitute its own judgment for that of the directors or managers. It does not protect those who act negligently, nor does it impose strict liability on directors and managers when violated. Therefore, option B is the correct answer.

The Business Judgment Rule