Which of the Following Is the Effect of the Business

question 35

Multiple Choice

Which of the following is the effect of the business judgment rule regarding the liability of officers and directors?

• A) Courts will not substitute their judgment for that of the board or an officer acting in good faith with due care.
• B) Officers and directors will never have liability for their decisions relating to the corporation.
• C) Officers and directors may have liability for bad faith decisions,but cannot be liable for failure to act.
• D) Directors and officers will not be held liable for conduct that is only negligent.

---

Definitions:

Product Differentiation

The strategy of distinguishing a product from competitors' products by emphasizing its unique features, quality, or design.

Motion Sensors

Devices that detect physical movements in a given area and convert them into signals, often used in security systems and energy efficiency applications.

Product Differentiation

The strategy of distinguishing a product or service from others in the market to make it more attractive to a particular target market.

Marketing Mix Actions

Decisions related to the four Ps (Product, Price, Place, Promotion) that companies adjust to meet the needs of their target market.