Discuss the purposes of the business judgment rule.

What will be an ideal response?

The business judgment rule is designed to accomplish three primary goals:?

1.It permits directors to do their job. If directors were afraid they would be liable for every decision that led to a loss, they would never make a decision, or at least not a risky one.2.It keeps judges out of corporate management. Shareholders would generally prefer that their investments be overseen by experienced corporate managers, not judges. Without the business judgment rule, judges would be tempted, if not required, to second-guess managers' decisions.3.It encourages directors to serve. No one in his right mind would serve as a director if he knew that every decision was open to attack in the courtroom. Even if the company pays the legal bills, who wants to spend years in litigation?
?

Business

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John bought an inflation-indexed security for $10,000 in January 2014. The security promises an annual interest rate of 5 percent and makes payments twice a year. If the value of the inflation index in January 2014 was 106 and its value in July 2014 was 105, John will receive an interest income of _____.

A. ?$504.76 B. ?$226.40 C. ?$182.72 D. $368.56

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Business

Union contracts tend to clearly assign job responsibilities to various jobs so as to prevent all of the following except:

A. Expansion of job duties without a commensurate increase in pay B. Union workers from shirking their responsibilities C. Supervisors from doing union workers' job D. Subcontracting and outsourcing of union jobs

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Business

On what criteria should assignment success be evaluated?

What will be an ideal response?

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Business

Legislation regarding HRM practices has been passed mainly to

A. promote job safety and to protect the rights of employers. B. benefit politicians by decreasing unemployment, thus making them look good. C. put small businesses that cannot afford to follow all the guidelines and policies set forth by government out of work. D. ensure that men and women are paid equally for equal work. E. protect the rights of employees, promote job safety, and eliminate discrimination in the workplace.

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Business