The Shareholders of Beazer Homes USA Filed Suit Against the Directors

question 16

Multiple Choice

The shareholders of Beazer Homes USA filed suit against the directors for the compensation plan that the Board approved for officers that provided the officers with bonuses despite the losses the company experienced and the continuing declines in sales of homes.Which of the following is correct about the suit?

• A)Shareholders are not permitted to sue their own directors.
• B)Absent fraud or illegality, the shareholders have no rights against the directors.
• C)The shareholders will need to establish a violation of the business judgment rule.
• D)Unless the shareholders were harmed directly, they have no right to bring suit or recover.

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Definitions:

Playworld Practice

involves creating imaginative and playful learning environments that encourage children to explore, learn, and develop through play.

Children's Literature

Books, stories, and poems that are written specifically for children, characterized by imaginative narratives and themes suitable for young audiences.

Dyscalculia

A learning disability that affects an individual's ability to understand numbers and learn math facts.