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Which of the Following Is True of the Business Judgment

Question 55

Multiple Choice

Which of the following is true of the business judgment rule?


A) It protects directors and officers from ever being held accountable for bad decisions.
B) It protects shareholders.
C) It encourages individuals to serve as directors.
D) It is an exception to the fiduciary duty of board members.
E) It applies in insider trading cases.

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