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:

Personal Mentoring

A developmental relationship where a more experienced or knowledgeable individual provides guidance and support to a less experienced or knowledgeable person.

Management Control

The process of monitoring and adjusting an organization's activities and operations to meet pre-defined objectives and ensure optimal performance.

Goal Motivate Performance

The concept that setting objectives can inspire and improve an individual's or group's work output or effectiveness.

Fostering Action Plans

Developing and implementing strategies to achieve specific goals, often involving the coordination of resources and tasks.