The __________ Rule Allows Management Immunity from Liability for Corporate

question 34

Multiple Choice

The __________ rule allows management immunity from liability for corporate acts where there is a reasonable indication that the acts were made in good faith and with due care.

• A) sovereign immunity
• B) business judgment
• C) reasonable director
• D) good faith

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Definitions:

Adipose Capsule

A layer of fat tissue surrounding certain organs, such as the kidneys, providing protection and insulation.

Renal Capsule

A tough fibrous layer surrounding the kidney that provides protective cushioning and structure.

Hilum

A depression or slit in an organ where structures such as blood vessels and nerves enter or exit.

Renal Corpuscle

The initial blood-filtering component of a nephron in the kidney, consisting of the Bowman's capsule and glomerulus, where blood plasma is filtered.