Which of the Following Is Correct Regarding the Business Judgment

question 33

Multiple Choice

Which of the following is correct regarding the business judgment rule?

• A) Directors and officers have an obligation to exercise sound business judgment,and any failure to do so is per se negligence that results in liability to the corporation.
• B) Directors and officers have an obligation to exercise sound business judgment,and any failure to do so results in a rebuttable presumption of negligence.
• C) Directors and officers are never liable in suits filed against them by shareholders.
• D) Directors and officers are not liable for honest mistakes of judgment.
• E) Directors and officers are liable for gross negligence,but not for ordinary negligence.

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Definitions:

Tracheotomy

A surgically made opening in the trachea through which a person will breathe.

Intubation

The insertion of a tube into a patient's airway to maintain an open airway or administer certain drugs.

Conchae

Curved shelves of bone located inside the nasal cavity that increase its surface area for the purpose of warming, moisturizing, and filtering the air breathed in through the nose.

Yawning

An involuntary action involving a deep inhalation followed by a wider opening of the mouth, often due to tiredness or boredom.