Which of the Following Is Not Imposed by the Business

question 72

Multiple Choice

Which of the following is not imposed by the business judgment rule regarding the liability of officers and directors?

• A)Strict liability.
• B)Informed decisions.
• C)Decisions in good faith without conflict of interest.
• D)Reasonable business judgment.

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Definitions:

Original Ratio

Original ratio refers to the initial proportional relationship between two or more quantities before any changes are made.

Partnership

A lawful business structure where two or more people jointly manage and share the earnings.

Consignment Store

A retail store that sells items on behalf of the owner, paying them a portion of the sales proceeds.

Partnership Agreement

A legal document that specifies the rights, obligations, and responsibilities of each partner in a business partnership.