The Directors of Kmart,Inc

question 126

Multiple Choice

The directors of Kmart,Inc.voted several years ago to approve a new marketing plan that involved endorsements by Martha Stewart of Kmart home products such as linens,paint and decorations.Marketing studies have shown that Martha Stewart was not the right match for endorsements for Kmart's customer base.Kmart is now in Chapter 11 bankruptcy.Its shareholders believe the Martha Stewart decision was the cause of the company's demise.

• A)The shareholders have a cause of action against the directors for violation of the business judgment rule.
• B)The shareholders have a cause of action against the directors for violation of the corporate opportunity doctrine.
• C)The shareholders can have the court order the directors removed for cause.
• D)The directors of Kmart are protected under the business judgment rule.
• E)none of the above

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Definitions:

Siblings

Brothers or sisters, including full, half, step, and adoptive relatives who share a common parent or guardian.

Mentally Retarded

An outdated and offensive term once used to describe individuals with intellectual and developmental disabilities.

Behavioral Modification

A treatment approach that applies the principles of behaviorism and operant conditioning to change undesirable behaviors into more desirable ones.

Training Programs

are structured courses or modules designed to enhance skills, knowledge, and competencies in specific areas for personal or professional development.