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...
Which of the following is defined by readily available information that comes to a person’s mind when making a decision?
A. imaging B. availability bias C. coding D. rehearsal
A successful business is built upon repeat customers.
Answer the following statement true (T) or false (F)
How are the coefficient of determination and correlation similar? How are they different?
What will be an ideal response?
In Sowers v. Forest Hills Subdivision, Sowers wanted to build a wind turbine to generate electricity. His neighbors opposed the construction and took Sowers to court. The Nevada high court held that:
a. the turbine was a nuisance b. the turbine was not a nuisance c. the turbine cast a shadow on neighbor's land, which was a trespass d. the turbine could be built only if surplus electricity from it was credited to neighbors who otherwise would receive no benefit from it e. none of the other choices are correct