The _____ Is a Presumption Given by the Courts to the Corporate

question 22

Multiple Choice

The _____ is a presumption given by the courts to the corporate directors that their actions were informed and done with good faith and with an honest belief that the actions were in the best interests of the corporation.

• A)preemptive rule
• B)derivative action rule
• C)business judgment rule
• D)closed shop right
• E)runaway shop right

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Definitions:

Design Competitions

Contests or challenges where individuals or teams compete to create the most effective or innovative design solutions within set parameters.

Potential Innovators

are individuals or entities that have the capacity to generate new ideas, products, or methods, often leading to significant advancements in their field.

Bootlegging Funds

The unauthorized allocation of resources or funds for projects or activities not formally sanctioned by organizations; often done covertly to pursue innovative ideas.

Management Scrutiny

The thorough and detailed review or examination of corporate management practices and performance.