Asked by
Manal Baabdullah
on Nov 28, 2024
Verified
Under the business judgment rule, directors cannot be held liable for the negligence or mismanagement of corporate personnel.
Business Judgment Rule
A rule under which courts will not hold corporate officers and directors liable for honest mistakes of judgment and bad business decisions that were made in good faith.
Negligence Or Mismanagement
The failure to exercise the care or oversight required, resulting in harm or loss.
- Attain insight into the responsibilities of corporate officers and directors from a legal and ethical standpoint, including fiduciary obligations and liability issues.
Verified Answer
DD
Learning Objectives
- Attain insight into the responsibilities of corporate officers and directors from a legal and ethical standpoint, including fiduciary obligations and liability issues.
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