Examlex
Which of the following is not a correct association?
Watered Stock
Shares issued by a company at a value much greater than its asset worth, inflating its apparent value without actual backing.
Fair Market Value
An estimate of the market value of a property, based on what a knowledgeable, willing, and unpressured buyer would likely pay to a knowledgeable, willing, and unpressured seller in the market.
Business Judgment Rule
A legal principle protecting corporate directors and officers from liability for decisions made in good faith and in the best interest of the company.
Derivative Action
A lawsuit brought by a corporation’s shareholder on behalf of the corporation against a third party, often an insider of the corporation.
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