What Is Not Part of the Presumptions of the Business

question 27

Multiple Choice

What is not part of the presumptions of the business judgment rule concerning directors?

• A) that the decision they reached was profitable to the corporation
• B) that they acted on an informed basis
• C) that they acted in good faith
• D) that they acted in the honest belief that the action taken was in the best interest of the corporation

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Definitions:

Not Guilty By Reason Of Insanity

A verdict stating that defendants are not guilty of committing a crime because they were insane at the time of the crime.

Parens Patriae

The principle by which the state can make decisions to promote the individual’s best interests and protect him or her from self-harm or neglect.

Civil Commitment

A legal process through which an individual with severe mental illness can be court-ordered to receive treatment in a psychiatric hospital.

State Decisions

Judgments or determinations made by government entities or authorities at the state level.