The Smith V

question 13

Multiple Choice

The Smith v.Van Gorkom decision underscores which of the following regarding statements of officers or directors?

• A) An outside director,but not an inside director,may in good faith rely upon any statement of an executive officer.
• B) An inside director,but not an outside director,may in good faith rely upon any statement of an executive officer.
• C) Any director may in good faith rely upon any statement of an executive officer.
• D) Not every statement of an executive officer can be relied upon in good faith.

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Definitions:

Welfare Rolls

A list or record of individuals and families who receive assistance from government welfare programs.

Expanded Sharply

Refers to rapid and significant growth or increase in a particular area, such as business, economy, or a specific sector.

Non-Cash Benefits

Forms of compensation provided to employees or beneficiaries that are not paid out in cash, such as health insurance, pension contributions, and food assistance.

In-Kind Benefits

Non-cash goods or services provided to beneficiaries, such as food stamps, housing, and healthcare, aimed to aid those in economic need.