The Text Case Patrick V

question 80

Multiple Choice

The text case Patrick v.Allen discussed whether the business judgment rule exempted directors of a corporation from liability for renting land to a private golf course,of which several directors were members,at a price sufficient to cover only property taxes.Which of the following was the result?

• A)That the business judgment rule applied to shield the directors from liability because the directors received no money directly from the golf course.
• B)That while the business judgment rule applies to directors,it did not apply to provide protection to the directors because they stood to benefit personally.
• C)That the directors could not benefit from the rule because the business judgment rule applies to officers,not directors.
• D)That the business judgment rule applied to shield the directors from liability because the transaction was properly recorded on the company's books and not hidden.
• E)That the business judgment rule applied to shield the directors from liability because no fraud was involved in the transaction.

Analyze how the disposal of interest in a subsidiary is reported in financial statements.

Understand the basic concepts and measurements related to digital graphics, including resolution and image storage.

Recognize the phases and methodologies of software development, including Agile and Waterfall methods.

Identify the qualities and factors affecting digital audio and how analog sounds are digitized.

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Definitions:

B State

A concept in psychology that refers to an individual's internal state, such as mood or emotion, which can affect behavior and perception.

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, responsible for processing information and controlling responses.

Habituation

The decreasing responsiveness to a stimulus after repeated exposure.

Sensitization

An increased responsiveness or sensitivity to a stimulus, often resulting from repeated exposure to the stimulus.