Which of the Following Is True in Regard to the Business

Multiple Choice

Which of the following is true in regard to the business judgment rule if one or more individual directors have a personal interest in a transaction being considered by the board?

A) The decision may be entitled to the protection of the business judgment rule if the transaction is approved by a majority of the inside directors.
B) The decision may be entitled to the protection of the business judgment rule if the transaction is approved by a majority of the disinterested directors.
C) The decision is not entitled to the protection of the business judgment rule resulting in a higher level of proof regarding the reasonableness of the transaction being required from the board of directors.
D) The decision is not entitled to the protection of the business judgment rule leading to a legally established conclusion of illegality on the part of the board of directors.