What Does the Business Judgment Rule Mean

question 34

Multiple Choice

What does the business judgment rule mean?

• A) Directors have an obligation to ensure that effective systems are in place to comply with legislation and to monitor the systems to ensure compliance.
• B) Directors must act prudently, and on a reasonably informed basis when making business decisions.
• C) Directors must use their judgment to determine whether the use of corporate information would create a personal benefit to the detriment of the corporation.
• D) Directors must act in the best interests of the corporation.
• E) None of the answers are correct.

---

Definitions:

Ineffective Listeners

Individuals who struggle to actively engage with or accurately interpret spoken communication, often leading to misunderstandings or lack of comprehension.

Surface Listeners

Individuals who give the appearance of listening without fully engaging or understanding the content being discussed.

Ineffective Listener

A person who struggles to listen actively, understand, or retain what is being communicated.

Detailed Notes

Concise records or annotations made during an event, meeting, or while studying to capture important information and insights.