Question

Shannon is an officer for Turista Shirts Corporation. Due to a bad business decision, made on a reasonable basis, on Shannon’s part, the company’s sales decrease. Shannon is most likely liable for breach of _____(A) the business judgment rule.(B) the duty of loyalty.(C) the duty of care.(D) none of the choices.

Answer 1

(D) none of the choices

Step-by-step explanation:

Shannon is the officer and a human, people can make mistakes, since due to the decision made by him the sales level has decreased and this was not expected by the company. Even though there is decrease but as he did not do it with the intentions to degrade company or the performance of company, he shall not be guilty of any act.

Assuming he took all the valid steps while forming the decisions he shall not be liable for any defaults or losses.

As it is common to incur losses in business, because of market changes.