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:

Insider Trade

The buying or selling of a publicly-traded company's stock by someone with access to non-public, material information about the company.

Provincial Securities Act

Legislation enacted by a province to regulate the trading of securities within its jurisdiction.

Mining Exploration

The process of searching for minerals or precious metals in the Earth's crust, typically involving surveying, drilling, and sampling.

Prospectus Requirement

A legal obligation for companies to disclose detailed financial information before issuing stock to the public.