Explain the business judgment rule and its relationship to the fiduciary duty of care owed by corporate officers and directors.
What will be an ideal response?
The determination of whether a corporate director or officer has met his or her duty of care is measured as of the time the decision is made; the benefit of hindsight is not a factor. Therefore, the directors and officers are not liable to the corporation or its shareholders for honest mistakes of judgment. This is called the business judgment rule. Were it not for the protection afforded by the business judgment rule, many high-risk but socially desirable endeavors might not be undertaken.
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A. organizational opportunities. B. scenario goal-setting and plans. C. a trend analysis. D. scenario planning and scenario analysis. E. strategic planning.
Which statement allows you to declare a variable?
a) If-Then-Else b) Dim c) For…Next d) Declare e) Public Function
What are the risks associated with term insurance policies?
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_____ is a company's product sales as a percentage of total sales for that industry.
A. Return on investment B. Profit share C. Revenue share D. Market share E. Contribution