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.
Correct Answer:

Verified
Correct Answer:
Verified
Q1: Which of the following duties is not
Q2: Directors of companies are not usually obliged
Q4: Which of the following is not a
Q5: The disclosure obligations of a company that
Q6: DDT Delights Ltd sells fertilisers and chemicals
Q7: A 'floating charge' is security for a
Q8: A 'general meeting' is where decisions are
Q9: Which of the following is not a
Q10: Which of the following best defines the
Q11: Under common law, directors must not place