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.
Answer: A
You might also like to view...
With a ______ structure, the organization has a central core of key functions and outsources others to vendors who can do them cheaper or faster.
A. hollow B. matrix C. spine D. hybrid E. mechanistic
For which of the following is the current ratio most useful?
a. In evaluating a company's profitability. b. In evaluating a company's solvency c. In evaluating a company's profitability d. In evaluating a company's liquidity.
Under the periodic inventory system, Cost of Goods Sold must be computed because it is not updated for sales and other transactions during the accounting period
Indicate whether the statement is true or false
Which of the following is a simple tool that would most likely ensure that Tammerline Zoo provides excellent customer service?
A) blog B) extranet C) call report D) customer survey E) expansion selling