The __________ precludes imposing liability on directors and officers for honest mistakes in judgment if they act with due care,in good faith,and in a manner reasonably believed to be in the best interests of the corporation.
A)duty of diligence.
B)duty of obedience.
C)business judgment rule.
D)None of the above.

Question

Quizplus · Accepted Answer

The business judgment rule is a legal principle that shields directors and officers from liability for their business decisions as long as they have acted in good faith, with due care, and in a manner that they reasonably believed to be in the best interests of the corporation. This rule precludes imposing liability on directors and officers for honest mistakes in judgment. The duty of diligence and duty of obedience are separate legal principles that do not apply to this scenario.

The __________ Precludes Imposing Liability on Directors and Officers for Honest