Luke Is a Director of Motor Parts Corporation

question 9

Multiple Choice

Luke is a director of Motor Parts Corporation.Luke makes decisions with respect to Motor Parts in good faith,in what he believes is the firm's best interest,and without violating any duties owed to it.If,despite these circumstances,Luke exercises poor business judgment,under the business judgment rule Luke is

• A)immune from liability.
• B)liable only to the extent that he gains as a result.
• C)liable only to the extent that Motor Parts suffers as a result.
• D)wholly liable.

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Definitions:

Predisposing Factors

Elements or conditions that make an individual more susceptible or inclined to develop a particular health issue or disease.

Direct Experience

Knowledge or skill acquisition through firsthand involvement or activity, without intermediation.

Past Performance

Previous accomplishments or performance levels, often evaluated in various contexts like job applications or investment strategies.

Control

In scientific experiments, the standard conditions that the experimental groups are compared against.