A Charter Option Statute Authorizes a Corporation to Adopt a Specific

question 47

Multiple Choice

A charter option statute authorizes a corporation to adopt a specific amendment to its articles of incorporation to:

• A) grant directors and officers blanket immunity.
• B) remove breach of duty as a cause of action for monetary damages against directors.
• C) limit director liability without the approval of the board of directors and the shareholders.
• D) limit the maximum liability that may be imposed on directors to the sum of $100,000.

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Definitions:

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow, organizing human needs into a five-level pyramid, from basic physiological needs to self-actualization.

Physiological Needs

The basic, essential life needs such as food, water, and shelter that must be met in order for an individual to survive and function properly.

Safety Needs

The second level in Maslow's hierarchy of needs, encompassing the human desire for security, safety, and physical well-being.

Managerial Ethics

Principles and standards that guide behavior in the world of business, including fairness, honesty, and integrity.