Which of the Following Is True in Regard to the Business

question 44

Multiple Choice

Which of the following is true in regard to the business judgment rule if one or more individual directors have a personal interest in a transaction being considered by the board?

• A) The decision may be entitled to the protection of the business judgment rule if the transaction is approved by a majority of the inside directors.
• B) The decision may be entitled to the protection of the business judgment rule if the transaction is approved by a majority of the disinterested directors.
• C) The decision is not entitled to the protection of the business judgment rule resulting in a higher level of proof regarding the reasonableness of the transaction being required from the board of directors.
• D) The decision is not entitled to the protection of the business judgment rule leading to a legally established conclusion of illegality on the part of the board of directors.

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Definitions:

Callback

In job recruitment, the invitation for a job applicant to return for a subsequent interview or further evaluation after an initial meeting or application.

Resumes

A document created and used by a person to present their background, skills, and accomplishments, intended for securing employment.

African American

A racial or ethnic group in the United States primarily consisting of descendants of African slaves as well as more recent immigrants from Africa.

Jennifer M. Silva

A scholar and author known for researching and analyzing the socioeconomic struggles and political views of working-class Americans.