A Key Consideration in Deciding Whether the Shareholders in the Countrywide

question 21

Multiple Choice

A key consideration in deciding whether the shareholders in the Countrywide Corporation case would be successful in their lawsuit against members of the board of directors was application of:

• A)Proportionate liability
• B)Scienter
• C)Business judgment rule
• D)Privity rule

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Definitions:

Precede

To come before something else in time, order, or position.

Demonstrably

Capable of being proven or shown through evidence or clear examples.

Ex Post Facto Design

An “after the fact” experimental design in which there is no control over experimental conditions.

Two-group Pretest

A research design involving two groups, where both are tested before the treatment or intervention is applied to one of them.