Luke Is a Director of Motor Parts Corporation

question 9

Multiple Choice

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

Group Decision Making

A process in which multiple individuals come together to analyze problems and evaluate options to achieve a collective decision.

Domination

Exercising control or power over others, often in a way that suppresses autonomy or freedom.

Quality Teams

Groups within organizations tasked with enhancing the quality of products, services, and processes through continuous improvement strategies.

Participative Decision Making

A process in which individuals who are affected by decisions influence the making of those decisions.