The Business Judgment Rule Holds Directors Liable For

question 20

Multiple Choice

The business judgment rule holds directors liable for:

• A)errors in business judgment.
• B)their mistakes.
• C)failure to obtain necessary information for making decisions.
• D)none of the above

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Definitions:

General Adaptation Syndrome

A model outlining the body's short-term and long-term reactions to stress, consisting of the stages of alarm, resistance, and exhaustion.

Sequence Of Stages

A series of phases or steps that an individual or process goes through in a particular order.

General Adaptation Syndrome

A concept introduced by Hans Selye, describing the body's short-term and long-term reactions to stress, consisting of three distinct stages: alarm, resistance, and exhaustion.

Resistance Stage

The second stage of the general adaptation syndrome, when there are intense physiological efforts to either resist or adapt to the stressor.