What does the business judgment rule mean?Investors are expected to exercise good judgment when making business decisions.Managers of a corporation cannot be sued for losing money as long as their decisions were made in good faith.Only a judge can rule when a corporation is sued, not a jury.Organizations are treated as individuals.

Which of the following statements is INCORRECT regarding the ‘business judgment rule’? Select one: a. The business judgment rule will not apply if a director or an officer has not conducted proper inquiries and research in connection with a decision to act or not to act. b. The business judgment rule provides a safe harbour for directors and officers in certain situations which might otherwise constitute a failure to exercise due care and diligence. c. Whether a reasonable person would share the belief that a decision is in the best interests of the company is a relevant consideration for the purposes of the business judgment rule, rather than the directors’ or the officers’ subjective belief. d. The business judgment rule is a general defence for all directors’ and officers’ duties.

Fill in the Blank QuestionFill in the blank question.Regardless of what an individual believes about a particular action, if judges it to be unethical or wrong, whether correctly or not, that judgment directly affects the organization’s ability to achieve its business goals. (Enter only one word in the blank.)

In many jurisdictions, company law requires directors of companies to exercise independent judgement.If a qualified accountant accepts a directorship, this requirement reinforces which fundamental principle? IntegrityTechnical competence and due careObjectivityProfessional behaviour

Problem with individual liability is/are:Group of answer choicesThe individual may hold a high-level position and his conviction can affect the entire company.It's difficult to identify responsible person within corporate structure.Business decisions are usually collective action of numerous corporate employees.All of these.

n many jurisdictions, company law requires directors of companies to exercise independent judgement.If a qualified accountant accepts a directorship, this requirement reinforces which fundamental principle? Professional behaviourIntegrityTechnical competence and due careObjectivity