For the Business Judgment Rule to Apply

question 35

Multiple Choice

For the business judgment rule to apply:

• A) there must be a conflict of interest.
• B) the director must exercise extraordinary care.
• C) the director must act in the best interests of the corporation.
• D) All of the above.

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Definitions:

Organizational Hierarchy

A structured ranking of individuals within an organization based on levels of responsibility, authority, or status.

Geographic Dispersion

The spread or distribution of a population or entity across different geographical locations.

Reception

The act or process of receiving, such as how an audience receives and interprets a message.

Communication Process

The series of steps taken to convey messages effectively from sender to receiver.