Final answer:
The business judgment rule protects corporate officers and directors from personal liability when making decisions in the best interests of the company. It is closely related to the fiduciary duty of care, which is a legal obligation to act in the best interests of the company. So, the correct answer is option d.
Step-by-step explanation:
The business judgment rule is a legal principle that provides protection to corporate officers and directors when making decisions on behalf of the company. It states that as long as directors and officers act in good faith, with reasonable care, and in the best interests of the company, they will not be held personally liable for their decisions, even if those decisions turn out to be wrong. This rule is closely related to the fiduciary duty of care owed by corporate officers and directors, which is a legal obligation to act in the best interests of the company and its shareholders.
The business judgment rule serves as a shield for directors and officers, allowing them to make decisions based on their judgment and expertise without fear of being sued or held personally responsible for those decisions. It recognizes that business decisions involve inherent risks and uncertainties, and that directors and officers should be given a certain degree of latitude to exercise their judgment in managing the affairs of the company.
The fiduciary duty of care is a higher standard of care that directors and officers owe to the company and its shareholders. It requires them to act with diligence, prudence, and skill in making decisions, and to use reasonable care and judgment to ensure that those decisions are in the best interests of the company. The business judgment rule provides protection to directors and officers who meet this standard of care.
So, the correct answer is option d.