Far Afield Inc. announces its intent to acquire Eversmall Company. Despite this announcement, Eversmall's directors do not prepare for a buyout¾they do not determine a price or seek out other buyers, and negotiate with Far Afield for only a short time. Former Eversmall shareholders allege that the directors breached their fiduciary duties. The directors' best defense is
A. the right to indemnification
B. the business judgment rule.
C. the shareholders' preemptive rights.
D. the limited liability of the corporation.
Answer: B
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