Luke Is a Director of Motor Parts Corporation

question 21

Multiple Choice

Luke is a director of Motor Parts Corporation.Luke makes decisions with respect to Motor Parts in good faith,in what Luke 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 Luke 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:

Pretests

Preliminary tests or assessments conducted to evaluate the effectiveness or performance of a campaign, product, or strategy before its full-scale launch.

In-House Agency

A marketing or advertising agency that is owned and operated within the company it serves, as opposed to being an external or separate entity.

Portfolio Test

A method used in advertising and marketing to evaluate the effectiveness of different advertisements by presenting them together with other ads to consumers.

Test Ad

An advertisement designed to gauge the responses of targeted consumers before a full-fledged marketing campaign.