Which of the following statements best describes the "business judgment rule"?
A) The courts will never find that a business decision by a director or officer is a breach of the duty of care.
B) Business decisions are presumed not to be a breach of duty,unless the court does not understand the business rationale for the decision.
C) Directors and officers should always exercise their best business judgment in making decisions relating to the corporation.
D) The courts will substitute their business judgment for that of directors and officers if doing so makes sense to them.
E) Business decisions are presumed not to be a breach of duty so long as they fall within the range of reasonable business alternatives that were available and the process for making the business decision was reasonable.
Correct Answer:
Verified
Q26: Actual authority of an employee may NOT
Q27: Ola holds 75 percent of the shares
Q29: Elroy was the controlling shareholder and sole
Q30: Jordan has been negotiating to sell office
Q30: Which of the following statements is TRUE?
Q34: Aldo is the vice-president of finance for
Q35: Yasir is a director and the operations
Q36: Which of the following statements best describes
Q38: Which of the following statements best describes
Q40: Unanimous shareholders' agreements have special legal characteristics
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents