What is meant by the business judgment rule?
Under the business judgment rule, as long as certain standards are met, a court will presume that the directors have acted in good faith and in the honest belief that the action taken was in the best interest of the company. The court will not question whether the action was wise or whether the directors made an error of judgment or a business mistake.
You might also like to view...
When designing effective slides, which of the following should be avoided?
A) Using the slide to replace your words B) Using the slides to highlight only key points C) Using the slides to summarize a message D) Using the slides to signal major shifts in thought E) Using the slides to illustrate concepts
Which statement is true about medical expense coverage under the boatowners package policy?
A) It pays the medical expenses of a covered person who is injured while in the boat. B) It pays the medical expenses of another boat operator who is injured as a result of negligent operation of the boat by the insured. C) It pays the medical expenses of a swimmer or a water skier being towed by another boat if he or she is hit by the insured's boat. D) It pays the medical expenses of someone on a dock or pier if the insured's boat hits the dock or pier and injures him or her.