In the Late 1960s,a Shareholder of the Company That Owned

question 45

Multiple Choice

In the late 1960s,a shareholder of the company that owned the Chicago Cubs baseball team sued the company because the directors refused to install lights in Wrigley Field.The court decided that the directors

• A)had a rational purpose for not installing lights and were not liable for doing anything improper.
• B)were not protected by the business judgment rule.
• C)had not acted with any rational purpose and were liable to its shareholders for damages caused by their actions.
• D)had the right to make decisions for the team without any concern for the desires of the shareholders.

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Definitions:

Economic System

The organized way in which a country allocates resources and apportions goods and services in the national community.

Atomic Bomb

A weapon of mass destruction that releases energy through nuclear reactions, devastating the target area with explosive force and radiation.

American Public

The collective individuals, or the society, of the United States, often referenced in discussions about public opinion, culture, or national identity.

Truman

The 33rd President of the United States, Harry S. Truman, who served from 1945 to 1953, known for implementing the Marshall Plan to rebuild the economy of Western Europe, and for leading the country during the early stages of the Cold War.