The Cap on Monetary Damages Statute Holds That the Maximum

question 40

Multiple Choice

The cap on monetary damages statute holds that the maximum liability that may be imposed on directors:

• A)is the greater of $100,000 or the amount of cash compensation that the director received from the corporation during the previous 24 months.
• B)is the greater of $100,000 or the amount of cash compensation that the director received from the corporation during the previous 12 months.
• C)is the greater of $50,000 or the amount of cash compensation that the director received from the corporation during the previous 12 months.
• D)is the greater of $100,000 or the amount of cash compensation that the director received from the corporation during the previous 36 months.

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Definitions:

Best Interest

Acting in a way that is most beneficial for a person or entity, considering their needs and goals.

Commit

To pledge or bind oneself to a certain course or policy, especially in a business or professional setting.

Penalty Kick

A method of restarting play in soccer, awarded for a foul within the penalty area, taken from the penalty spot against only the goalkeeper.

Kicker's Payoffs

A rephrased definition: The potential returns or outcomes that a participant in a game or negotiation, known as the "kicker," stands to gain.