The 'Business Judgement Rule' Is Recognition of the Fact That

question 17

Multiple Choice

The 'business judgement rule' is recognition of the fact that:

• A)The Courts hold directors to an extraordinarily high standard of care.
• B)Not every decision that causes loss or harm to a company amounts to a breach of duty by a director.
• C)When a director's act causes loss or harm to a company that director will generally be in breach of their duty to the company.
• D)Third parties can assume that directors acting on behalf of the company are acting in accordance with the rules of its constitution.

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