How Broad Should the "Business Judgment" Rule Be in Protecting

question 105

Essay

How broad should the "business judgment" rule be in protecting officers and directors from liability for their actions? What is the purpose of the rule? What are the difficulties in its application?

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Definitions:

Guaranteed

A commitment or assurance, often by a third party, that certain conditions will be fulfilled, including payments or the performance of contractual obligations.

Interest Rate

The rate at which a portion of money is applied as a fee for its loan, commonly expressed per annum.

Present Value

The calculated present value of future monetary sums or cash flow series, with a defined rate of return.

Invest

The process of investing funds or assets in a project with the aim of earning extra income or gains.