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:

Month-end Contributions

The act of adding funds to an investment, account, or plan specifically at the end of a month.

Bond Fund

A mutual fund that invests primarily in bonds and other debt securities to generate returns.

Ordinary Annuity

A series of equal payments made at regular intervals, with the interest compounding period matching the payment period, such as annually.

Expressed

Articulated or conveyed in words, symbols, or in another explicit manner.