When a Corporate Manager Makes an Honest Error in Judgment,the

question 50

Multiple Choice

When a corporate manager makes an honest error in judgment,the business judgment rule directs that:

• A)the manager will be liable for corporate losses.
• B)the manager will not be liable and a court will step in to correct the manager's mistake.
• C)the manager will not be liable if he acted with care and in good faith.
• D)the manager will be liable for all losses resulting from the error.

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Definitions:

Individual Strategies

Personal plans or methods developed by individuals to achieve specific goals or solve problems.

Unmet Customer Need

A market opportunity that arises from a gap between the current supply of a product or service and its demand.

Target Market

A specific group of potential customers at whom a company aims its products or services.

End-user Products

Final goods or services intended for consumption or use by the ultimate consumer, as opposed to intermediate goods used in production.