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:

Hemisphere

Half of a spherical or roughly spherical structure, especially one of the halves of the brain.

Caudate Nucleus

A curved, elongated nucleus located within the brain, playing a key role in various functions including motor processing, learning, memory, and emotion regulation.

Corpus Striatum

Caudate nucleus, putamen, and globus pallidus; so-named because of the striations caused by intermixing of gray and white matter, which result from the number of tracts crossing the anterior portion of the corpus striatum.

Subthalamic

Pertaining to the location or region under or beneath the thalamus in the brain, often referring to the subthalamic nucleus involved in motor control.