Question $20$

TechGrowth Inc. is a fast$-$growing technology startup. The board consists of seasoned industry

professionals, each bringing unique expertise and perspectives to the table. TechGrowth Inc. is at a critical

juncture, facing a decision on whether to invest heavily in the development of a new product line or to focus

on expanding its existing product offerings. The CEO, Serena, strongly believes that investing in the new

product line will position the company for significant growth and success in the long term. However, some

board members express concerns about the potential risks and uncertainties associated with the new

product line. They question whether the investment aligns with the company's strategic goals and whether

it represents the best use of resources at this time. Ultimately, the board decides to approve the investment

in the new product line. If the sahreholders bring a suit against the board of directors alleging the board is

liable under the business judgment rule. What is the outcome? Explain, in detail, your decision.