If a Court Determines That a Manager's Corporate Decision Amounted

question 31

Multiple Choice

If a court determines that a manager's corporate decision amounted to self-dealing,

• A)the business judgment rule will not apply.
• B)the transaction being challenged will be automatically voided.
• C)the manager is automatically personally liable to the corporation.
• D)the manager will automatically be fired.

---

Definitions:

Long Run

A period of time sufficient for all inputs in the production process to be adjusted, including both fixed and variable resources.

Short-Run Equilibrium

A state in which market supply equals market demand at a particular price level, but where all factors of production and costs are not fully adjustable.

Long-Run Equilibrium

A state in which economic forces such as supply and demand are balanced and in the absence of external influences the values of economic variables will not change.

Economic Expansions

Phases in the business cycle where the economy grows, characterized by increased output, employment, and consumer spending.