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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Definitions:

Background Checks

The process of verifying the personal, financial, and criminal records of an individual, typically conducted by employers before hiring a new employee.

Social Media Sites

Online platforms that enable users to create and share content or participate in social networking, such as Facebook, Twitter, and LinkedIn.

Minimum Scores

The lowest acceptable limits or points, frequently used in contexts like examinations, evaluations, or qualifications.

Multiple Cut-off Approach

A decision-making technique where alternatives are evaluated against a series of minimum criteria or thresholds, eliminated if they fail to meet any one of these.