ANSWERS-CH43 - CHAPTER 43 MANAGEMENT OF CORPORATIONS...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
CHAPTER 43 MANAGEMENT OF CORPORATIONS ANSWERS TO CHAPTER 43 True-False Multiple Choice 1. F 2. T 3. F 4. T 5. T 6. F 7. F 8. T 9. T 10. T 11. F 12. F 13. b 14. d 15. d 16. c 17. a 18. b 19. c 20. c 21. a 22. d Short Essay 23. In order for the directors to be entitled to the protection of the business judgment rule, they must have made an informed decision, rather than a decision made without important facts and other relevant information. Further, in making the decision, the directors must have been free from conflicts of interest. Finally, the directors must have had a rational basis for believing the decision was in the best interests of the corporation. This means that the decision must not have been manifestly unreasonable, given the pertinent facts. If all three elements (informed decision; no conflicts of interest; and rational basis for believing decision was in corporation's best interests) coexisted at the time the decision was made, the directors will be entitled to the protection from liability afforded by the business judgment rule, even though the
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/30/2010 for the course BUSLAW 301 taught by Professor Abu during the Spring '09 term at Abu Dhabi University.

Page1 / 2

ANSWERS-CH43 - CHAPTER 43 MANAGEMENT OF CORPORATIONS...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online