1.Which best describes the business judgment rule?

a. A fiduciary duty that requires directors to be experts.

b. A fiduciary duty imposed on shareholders who elect directors.

c. A rule that is applicable only if it is set forth in the corporate bylaws.

d. A rule designed to protect directors from personal liability.

2.Which of the following is true with respect to dividends?

a. There are some restrictions on the board of directors with respect to declaring dividends.

b. Nonprofit corporations are allowed to declare reasonable dividends.

c. Shareholders have an absolute right to dividends.

d. Bondholders receive dividends.