Under the , the Courts Generally Avoid Second-Guessing Corporate Executives

question 93

Multiple Choice

Under the , the courts generally avoid second-guessing corporate executives and let stand any business decisions made in good faith that are uninfluenced by personal considerations.

• A) business judgment rule
• B) corporate opportunity doctrine
• C) conflict of interest rule
• D) expense item rule

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Definitions:

Controllable Factor

An element within a business or project that can be managed or influenced directly.

Excess Supply

A situation where the quantity of a product offered for sale by producers exceeds the quantity demanded by consumers at the current price.

Downward Pressure

Describes a situation in which there are factors that are causing the price of an asset or security to potentially decline.

Complements

Items that, when used or consumed together, enhance the value or enjoyment of both, often leading to an increase in demand for one when the price of the other decreases.