Use the Fact Situation in Q1 to Answer the Related

question 15

Multiple Choice

Use the fact situation in Q1 to answer the related question that follows. In this situation,assuming that Multi Corp Ltd.brought the lawsuit,at common law,the best argument that A,B,and C would have is that

• A)they have not breached the duty of good faith owed to the shareholders of Multi Corp Ltd.
• B)they have not committed a breach of fiduciary duty owed to Multi Corp Ltd.
• C)they have not committed a breach of fiduciary duty owed to the shareholders of Multi Corp Ltd.
• D)the business judgment rule applies and they are not liable.
• E)the due diligence rules do not apply at common law.

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Definitions:

Zuckerman

Refers to Marvin Zuckerman, a psychologist known for his research on sensation seeking and its implications on personality and behavior.

Sensation Seeking

A personality trait characterized by the search for experiences and feelings that are varied, novel, complex, and intense.

Middle School

An educational institution serving students typically between the ages of 11 and 14, bridging the transition from elementary school to high school.

Zuckerman

Refers to Marvin Zuckerman, an American psychologist known for his research on sensation seeking as a personality trait.