Jenny Is an Officer of a Corporation

question 27

Multiple Choice

Jenny is an officer of a corporation.She made a difficult business decision.When challenged about her decision,the court ruled she had acted in good faith and that the business judgment rule applied.As such:

• A) Jenny will not be held personally liable for a decision that results in money losses to the company.
• B) Jenny's decision will be reviewed by a court.
• C) Jenny is immune from a lawsuit.
• D) Jenny must resign from the board.

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Definitions:

Unauthorized Use

The use of something, typically intellectual property or physical assets, without the permission or rights to do so.

ATM Card

A card used together with a personal identification number (PIN) to gain access to an automatic teller machine (ATM).

Executor

An individual appointed by a will to execute or carry out the instructions and distribute the estate of the deceased.

Obligated

Required by law, contract, or agreement to perform or refrain from performing a certain action.