business judgment rule
Definition
Legal presumption that the management of a firm is acting in the firm's best interest and, therefore, its decisions are protected from judicial review. It protects the management from decisions that result in loss or turn out to be wrong. If the management is found, however, to be in violation of its fiduciary duties, the rule does not apply and its activities come under the scrutiny of the courts.
business judgment rule is in the Corporate, Commercial, & General Law and Entrepreneurship, Management, & Leadership subjects.
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