Which of the Following Is True in Regard to the Business

question 44

Multiple Choice

Which of the following is true in regard to the business judgment rule if one or more individual directors have a personal interest in a transaction being considered by the board?

• A) The decision may be entitled to the protection of the business judgment rule if the transaction is approved by a majority of the inside directors.
• B) The decision may be entitled to the protection of the business judgment rule if the transaction is approved by a majority of the disinterested directors.
• C) The decision is not entitled to the protection of the business judgment rule resulting in a higher level of proof regarding the reasonableness of the transaction being required from the board of directors.
• D) The decision is not entitled to the protection of the business judgment rule leading to a legally established conclusion of illegality on the part of the board of directors.

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Definitions:

Relational Transparency

A characteristic of authentic leadership involving leaders openly sharing their true thoughts and feelings with followers.

Staff Meeting

A scheduled gathering of employees led by a manager or leader to discuss team objectives, projects, and address any workplace issues.

Authentic Leadership

Authentic Leadership is a leadership style that emphasizes the importance of leaders being genuine, transparent, and ethical, focusing on building trust and legitimacy through honest relationships with followers.

Sense of Abundance

The mindset that there is enough resources and success to share with others, contrasting with a scarcity mindset.