For the business judgment rule to apply,the manager must
A)be trying to resolve a conflict of interest.
B)have exercised extraordinary care in resolving the situation.
C)have acted in the best interests of the corporation.
D)prove he or she was aware of the decision being made.

Question

Quizplus · Accepted Answer

The business judgment rule applies when a manager has acted in good faith and in the best interests of the corporation. This means that the manager must have made the decision with the belief that it was in the best interests of the company, and not for personal gain or other motives. The rule does not require extraordinary care or awareness of the decision being made.

For the Business Judgment Rule to Apply,the Manager Must