Asked by
Manuel Alejandro
on Nov 30, 2024
Verified
A director may make business decisions in reliance on information provided to him without incurring liability for negligence as long as he:
A) notifies the preparer of the information.
B) reasonably believes that the information is reliable.
C) conducts his own independent investigation.
D) is given a sworn affidavit by the preparer.
Liability for Negligence
Legal responsibility imposed on a person or entity for harm caused by careless or reckless actions resulting in injury to another.
Independent Investigation
A process in which an unbiased party examines and assesses the facts of a situation or claim without influence from those involved in the matter.
- Familiarize oneself with the obligations and tasks of corporate directors and officers, with a focus on fiduciary duties.
- Acknowledge the legal mechanisms that safeguard corporate directors and officers, including the business judgment rule.
Verified Answer
MO
Learning Objectives
- Familiarize oneself with the obligations and tasks of corporate directors and officers, with a focus on fiduciary duties.
- Acknowledge the legal mechanisms that safeguard corporate directors and officers, including the business judgment rule.
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