Which of the Following Statements Best Describes the Business Judgment

question 16

Multiple Choice

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

• A) Board members are expected to conduct themselves in a manner that could reasonably be seen as being in the best interests of the shareholders.
• B) Board members are always expected to make good decisions.
• C) The courts are expected to "second guess' decisions made by corporate boards.
• D) Directors and managers are always expected to make good decisions.
• E) Board decisions should be subject to constant scrutiny by the courts.