Question

True or false to these questions

An executive's discretion and impact on a public policy issue increases as the issue matures over time.

Under the business judgment rule, all states prevent officers and directors from taking into account stakeholders (employees, customers, etc.) when determining whether a decision was made in the best interests of the company.

No state in the United States allows an executive to favor the interests of a stakeholder (e.g., employees) over the interest of shareholders.

Independent negligent acts by two different parties can each be held liable if each was a proximate cause of another's injuries.

The holding of the Dodge v. Ford case was that Ford's planned expansion of the business, to that extent, would be considered as acting within the best interests of the company.

Limited partners of a limited partnershiop never risk more than their investment in the partnership.

All choices of business entity allow the avoidance of double taxation of earnings.

Answer 1

1) An executive's discretion and impact on a public policy issue increases as the issue matures over time.

Answer = True

• With time it becomes extremely necessary for executive to react ethically on a public policy issue

2) Under the business judgment rule, all states prevent officers and directors from taking into account stakeholders (employees, customers, etc.) when determining whether a decision was made in the best interests of the company.

Answer = False

• Under the business judgment rule, officers and directors should take into account stakeholders (employees, customers, etc.) when determining whether a decision was made in the best interests of the company.

3) No state in the United States allows an executive to favor the interests of a stakeholder (e.g., employees) over the interest of shareholders

Answer = True

• Shareholders are of utmost interests to the executives in USA

4) Independent negligent acts by two different parties can each be held liable if each was a proximate cause of another's injuries.

Answer = True

1. A judge or jury has the final say on if the defendant's actions are the proximate cause of the plaintiff's injuries