Which of the Following Statements Best Describes the "Business Judgment

question 67

Multiple Choice

Which of the following statements best describes the "business judgment rule"?

• A) The courts will never find that a business decision by a director or officer is a breach of the duty of care.
• B) Business decisions are presumed not to be a breach of duty, unless the court does not understand the business rationale for the decision.
• C) The courts will substitute their business judgment for that of directors and officers if doing so makes sense to them.
• D) Business decisions are presumed not to be a breach of duty so long as they fall within the range of reasonable alternatives that were available and the process for making the decision was reasonable.
• E) Directors and officers should always exercise their best business judgment in making decisions relating to the corporation.

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