Asked by
zychea murray
on Nov 01, 2024
Verified
Pogisa is a director at Trendz Corp.After studying and consulting with experts,Pogisa votes to have Trendz sell a tract of land for $500 per acre.Within a year,the land is worth $2,000 per acre,and Trendz shareholders want to sue Pogisa for her vote to sell the land.Under the ________,Pogisa may be entitled to legal protection.
A) Fairness Rule
B) Business Judgment Rule
C) Insider Trading Rule
D) Actual Authority Rule
Business Judgment Rule
A legal principle that protects the decisions of corporate directors and officers, made in good faith and with reasonable diligence, from being second-guessed by courts.
Fairness Rule
The rule that requires managers to be fair to the corporation when they personally benefit from their business decisions.
- Acquire knowledge of the business judgment rule's core principles and its defense mechanisms for corporate leaders.
Verified Answer
CS
Learning Objectives
- Acquire knowledge of the business judgment rule's core principles and its defense mechanisms for corporate leaders.