Which of the Following Statements Best Describes the "Business Judgment

question 22

Multiple Choice

Which of the following statements best describes the "business judgment rule"?

• A)The courts will never find that a business decision by a director or officer is a breach of the duty of care.
• B)Business decisions are presumed not to be a breach of duty, unless the court does not understand the business rationale for the decision.
• C)Directors and officers should always exercise their best business judgment in making decisions relating to the corporation.
• D)The courts will substitute their business judgment for that of directors and officers if doing so makes sense to them.
• E)Business decisions are presumed not to be a breach of duty so long as they fall within the range of reasonable business alternatives that were available and the process for making the business decision was reasonable.

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Definitions:

Mammogram

An X-ray image of the breast used to detect tumors or other abnormalities.

Breast Self-Examinations

A procedure in which a woman examines her own breasts for lumps, changes, or any unusual signs as part of breast cancer screening.

Admission Process

The procedure followed by hospitals or institutions for admitting patients or participants, often involving paperwork, assessment, and initial treatment planning.

Cultural Differences

Variations in the practices, customs, and behaviors of different societies or groups of people.