Question: DQ8-1 - Business Judgment Rule In Chapter 9 you learned that the Business Judgment Rule protects directors and officers from personal liability for business judgments

DQ8-1 - Business Judgment Rule

In Chapter 9 you learned that the Business Judgment Rule protects directors and officers from personal liability for business judgments made in good faith after diligent inquiry. Why is the business judgment rule so important to both directors and shareholders? What would be some possible consequences if directors could not rely on the business judgment rule? Is this good public policy?Why or why not? Explain.

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