The business judgment rule holds directors liable for:
A)errors in business judgment.
B)their mistakes.
C)failure to obtain necessary information for making decisions.
D)none of the above

Question

Quizplus · Accepted Answer

The business judgment rule protects directors from liability for decisions made in good faith and with due care. However, directors can be held liable if they fail to obtain necessary information before making decisions, as this indicates a lack of due diligence.

The Business Judgment Rule Holds Directors Liable For