Which of the following is not imposed by the business judgment rule regarding the liability of officers and directors?
A)Strict liability.
B)Informed decisions.
C)Decisions in good faith without conflict of interest.
D)Reasonable business judgment.

Question

Quizplus · Accepted Answer

The business judgment rule does not impose strict liability on officers and directors. It allows them to make decisions that are reasonable and informed, in good faith and without conflict of interest, without being held liable for any losses or harms that may result from those decisions, as long as they are not in violation of any laws or regulations. Strict liability would mean that they are automatically liable for any losses or harms that occur, regardless of their actions or intentions, and this is not consistent with the principles of the business judgment rule.

Which of the Following Is Not Imposed by the Business