Under the Business Judgment Rule, Directors May Not Be Found

question 5

True/False

Under the business judgment rule, directors may not be found personally liable to the corporation or third parties for their fraudulent acts if those acts were made on behalf of the corporation.

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Definitions:

Human Development

The multidisciplinary study of how people grow and change throughout their lives, encompassing physical, cognitive, social, and emotional dimensions.

Ecological-systems Perspective

A theoretical framework in psychology that emphasizes the varying systems of the environment and their impact on individual development, originally developed by Urie Bronfenbrenner.

Psychoanalytic Theorist

An individual who explores and theories about the unconscious motivations that influence human behavior, typically drawing on Freudian concepts.

Developmental Stages

Distinct phases in the life cycle of humans (and other organisms) that are characterized by specific physical, psychological, and cognitive developments.