Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the business judgment rule protects officers of a

The Business Judgment Rule protects officers of a corporation from liability honest mistakes or bad...

90.2K

Verified Solution

Question

Accounting

The Business Judgment Rule protects officers of a corporation from liability honest mistakes or bad business decisions. Kaitlin, the Chief Marketing Officer for Dominick's Donuts, made a business decision to open Dominick's Donuts stands in several area health and fitness centers. It turned out to be a bad idea, and the corporation lost millions. Under which of the following circumstances would Kaitlin NOT be protected under the business judgment rule?

a) Kaitlin took reasonable steps to become informed about the business decision.

b) Kaitlin's arrangements with the health centers were very lucrative for her because each center paid her $1,000 per month personally for the location.

c) Kaitlin had a rational basis for her decision

d) Kaitlin did not have a conflict of interest between her personal interest and the interest of the corporation.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

O 13 A tent is in the shape of a triangular prism About how much...

Basic Math
Q

Is bipedalism a uniquely human trait? What makes us morphologically human and different? Expound on the...

Biology
Q

A 1-m-diameter cylinder, 1 m long, is maintained at 800 K and has an emissivity of...

Mechanical Engineering
Q

20 How is magnetic force defined O The force due to the alignment of atoms...

Physics
Q

33 If the economy is at equilibrium above potential output A there is a recessionary...

Basic Math
Q

Graph the parabola (do not place any dots) then fill in the blanks about the...

Basic Math
Q

Questi er collects a simple random sample of grade p

Statistics
Q

1 Determine what type of relationship linear quadratic exponential or neither exists in each case...

Algebra
Q

image

image

Accounting
Q

The balance of an appropriated retained earnings account is reduced Multiple Choice when net...

Accounting
Q

The Harris Company is authorized to issue 1,000,000 shares of $5 par value common stock....

Accounting
Q

Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the...

Accounting