The Business Judgment Rule Is Important Because It Reflects the Principle

question 18

Multiple Choice

The business judgment rule is important because it reflects the principle that ______, not ______, have the greatest latitude to run companies.

• A)shareholders; company directors
• B)company directors; shareholders
• C)managers; company directors
• D)shareholders; managers

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Definitions:

Interaction Effect

effect of one independent variable on the dependent variable at the different levels of another independent variable.

Main Effect

Effect of an independent variable on the dependent variable within a factorial research design.

Simple Effect

Effect of one independent variable at one of the levels of another independent variable.

Independent Variable

The factor in a study that the experimenter alters to see how it impacts the outcome variable.