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.

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