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The 'Business Judgement Rule' Is Recognition of the Fact That

Question 3

Multiple Choice

The 'business judgement rule' is recognition of the fact that:


A) the Courts hold directors to an extraordinarily high standard of care.
B) not every decision that causes loss or harm to a company amounts to a breach of duty by a director.
C) when a director's act causes loss or harm to a company that director will generally be in breach of their duty to the company.
D) third parties can assume that directors acting on behalf of the company are acting in accordance with the rules of its constitution.

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