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The Business Judgment Rule protects officers of a corporation from liability honest mistakes or bad...

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Accounting

The Business Judgment Rule protects officers of a corporation from liability honest mistakes or bad business decisions. Kaitlin, the Chief Marketing Officer for Dominick's Donuts, made a business decision to open Dominick's Donuts stands in several area health and fitness centers. It turned out to be a bad idea, and the corporation lost millions. Under which of the following circumstances would Kaitlin NOT be protected under the business judgment rule?

a) Kaitlin took reasonable steps to become informed about the business decision.

b) Kaitlin's arrangements with the health centers were very lucrative for her because each center paid her $1,000 per month personally for the location.

c) Kaitlin had a rational basis for her decision

d) Kaitlin did not have a conflict of interest between her personal interest and the interest of the corporation.

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