Study Aids Inc. offers to buy the stock of Test Prep Products Corporation. Test Prep's directors oppose the offer. Some of the Test Prep shareholders file a suit, alleging a breach of the directors' fiduciary duties. Most likely, the court will

Question

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When directors oppose a takeover offer, the court usually applies the business judgment rule, which presumes that directors' decisions are made in good faith and in the best interests of the company, unless there is evidence of fraud, bad faith, or self-dealing. The court would analyze the actions of the directors to determine whether they breached their fiduciary duties by considering whether the directors made an informed decision, acted in good faith, and acted in the best interests of the shareholders. Therefore, the most likely choice is A. The other choices are not relevant in this scenario.