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Luke Is a Director of Motor Parts Corporation

Question 38

Multiple Choice

Luke is a director of Motor Parts Corporation.Luke makes decisions with respect to Motor Parts in good faith,in what Luke believes is the firm's best interest,and without violating any duties owed to it.If,despite these circumstances,Luke exercises poor business judgment,under the business judgment rule Luke is


A) immune from liability.
B) liable only to the extent that Luke gains as a result.
C) liable only to the extent that Motor Parts suffers as a result.
D) wholly liable.

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