Even When the Board Makes an Informed Decision,the Business Judgment

question 51

Multiple Choice

Even when the board makes an informed decision,the business judgment rule is not applicable if:

• A) the transaction is approved by a majority of the disinterested directors after full disclosure of all the facts.
• B) the directors have no duty of loyalty or care to the corporation.
• C) the directors have a financial or other personal interest in the transaction at issue.
• D) the directors neither have an interest on either side of the transaction nor expect to derive any personal financial benefit from the transaction.

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Definitions:

Competitive Benchmarking

A market-based sales force sizing approach in which sales managers match the size of competitors’ sales forces.

Competitors' Sales Force

A group employed by a company's rival tasked with selling their products or services.

Lead Scoring

A methodology used to rank prospects against a scale that represents the perceived value each lead represents to the organization.

Organizational Hierarchy

The arrangement of individuals within an organization according to power, status, and job functions, forming a structure of authority and responsibility.