The business judgment rule accomplishes all of the following EXCEPT
A)permits directors to do their jobs.
B)keeps judges out of corporate management.
C)encourages directors to serve.
D)totally protects managers from all liability.

Question

Quizplus · Accepted Answer

The business judgment rule does not totally protect managers from all liability. It only provides them with a legal presumption that they acted in good faith and in the best interest of the company when making business decisions. If managers violate their duties or act recklessly, they can still be held liable.

The Business Judgment Rule Accomplishes All of the Following EXCEPT