Under the Business Judgment Rule, Directors Cannot Be Held Liable

question 97

True/False

Under the business judgment rule, directors cannot be held liable for the negligence or mismanagement of corporate personnel.

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Definitions:

Amnesia

This condition involves the loss of memories, such as facts, information, and experiences, potentially caused by disease, injury, or psychological trauma.

Aphasia

A condition characterized by the loss of the ability to understand or express speech, caused by brain damage.

Physical Alterations

Changes or modifications in physical appearance or structure, possibly due to surgical, traumatic, or cosmetic reasons.

Personal Space

The physical space immediately surrounding someone, into which any encroachment feels uncomfortable or invasive to that person.