To Obtain the Protection of the Business Judgment Rule, a Director

question 34

Multiple Choice

To obtain the protection of the business judgment rule, a director must meet certain requirements in arriving at his or her decisions. He or she must:

• A) make an informed decision; be free from conflicts of interest; and must have a rational basis for believing that the decision is in the best interests of the corporation.
• B) make a subjectively rational decision that is based on a cost benefit analysis.
• C) make an informed decision that promised to make the corporation a substantial profit; the decision need not be objectively rational, only subjectively rational.
• D) use the court's business judgment for all of the corporation's matters.

Gauge the impact of technology on organizational behavior and structure.

Understand the dynamics of personal and environmental factors influencing human behavior in organizations.

Understand the concept of organizational culture and its significance in shaping member behaviors.

Identify the key questions and issues related to external adaptation in organizations.

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Definitions:

Lumbar Vertebrae

The five vertebrae between the rib cage and the pelvis, forming the lower part of the back.

Articulate

To form a joint or connection between structures, allowing for movement; or to express oneself clearly in spoken or written form.

Facets

Smooth, flat surfaces that form joints with other bones or structures, often referring to parts of the vertebral bones.

Ribs

Curved bones that form the rib cage, providing protection to the thoracic cavity and support for the upper body.