Gargantua Inc Is a Very Large Company with a Very

question 56

Multiple Choice

Gargantua Inc is a very large company with a very large board of directors.Lada is one of those directors.The corporation recently became involved in a number of scandals.As a result, the various members of the board of directors have been named as defendants in several lawsuits.Lada is, of course, hoping to avoid liability.Which of the following statements is TRUE?

• A)As a director, Lada is personally responsible for the accuracy of any documents that accountants prepared on behalf of the company.
• B)If another director was granted sole responsibility for the corporation's financial dealings, Lada cannot possibly be held liable for misconduct that arose in connection with those financial dealings.
• C)The business judgment rule states that business decisions of the directors will not be found to be a breach of duty so long as they were within the range of reasonable alternatives available and the process by which the decision was taken was reasonable.
• D)In order to protect shareholders, judges require proof that every decision made by a board of directors was the best decision possible.
• E)Only officers, not directors, are responsible for any corporate wrongdoing.

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Interests Consideration

The act of taking into account various interests, preferences, and perspectives when making decisions or developing policies.

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Fundamental skills required for employment, including literacy, numeracy, communication, and problem-solving abilities.