Rafi, a Director of Super Service Station Corporation, Does Not

question 28

Multiple Choice

Rafi, a director of Super Service Station Corporation, does not attend a board meet?ing for three years. During that time, Twyla, Super's president, makes improper loans that cost the company $100,000. Rafi is most likely

• A) liable for negligence or mismanagement.
• B) liable for violation of the business judgment rule.
• C) not liable because missing meetings is an honest mistake.
• D) not liable because missing meetings is only poor judgment.

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Definitions:

Adult Population

The adult population consists of all individuals within a specified area or country who are considered adults, often defined as people aged 18 and over.

Labor Force

The total number of people employed or actively seeking employment in a country or region.

Natural Rate

Often refers to the natural rate of unemployment where the economy is in equilibrium, or the long-term interest rate unaffected by short-term fluctuations.

Unemployment

A situation where individuals who are capable of working and willing to work at current wage rates cannot find employment.