Which of the following statements is INCORRECT regarding the ‘business judgment rule’? Select one: a. The business judgment rule will not apply if a director or an officer has not conducted proper inquiries and research in connection with a decision to act or not to act. b. The business judgment rule provides a safe harbour for directors and officers in certain situations which might otherwise constitute a failure to exercise due care and diligence. c. Whether a reasonable person would share the belief that a decision is in the best interests of the company is a relevant consideration for the purposes of the business judgment rule, rather than the directors’ or the officers’ subjective belief. d. The business judgment rule is a general defence for all directors’ and officers’ duties.

What does the business judgment rule mean?Investors are expected to exercise good judgment when making business decisions.Managers of a corporation cannot be sued for losing money as long as their decisions were made in good faith.Only a judge can rule when a corporation is sued, not a jury.Organizations are treated as individuals.

n many jurisdictions, company law requires directors of companies to exercise independent judgement.If a qualified accountant accepts a directorship, this requirement reinforces which fundamental principle? Professional behaviourIntegrityTechnical competence and due careObjectivity

Which of the following would not be grounds for an appeal? Group of answer choices The judge or jury made a mistake. The misapplication of a legal rule. An error made based on the admissibility of evidence. Any of the above may be grounds for an appeal.

Which of the following is INCORRECT in relation to a director who accepts a bribe in return for selling the company’s business for a low price? Select one: a. The director has breached their statutory duties under ss 181 and 182 of the Corporations Act 2001 (Cth). b. The director may be found guilty of a criminal offence if they were intentionally dishonest. c. The director has breached their fiduciary duty to avoid a conflict of interest. d. The director will only be liable under the common law and under the Corporations Act 2001 (Cth) if they were intentionally dishonest and evidence establishing the directors’ dishonest intention must be put forward.

One way of exercising judgment in the conduct of the work of an auditor is through deciding the extent of audit procedures and in assessing the reasonableness of the judgment and estimates made by the management in preparing the financial statements.Select one:TrueFalse