Luke is a director of Motor Parts Corporation. Luke makes decisions with respect to Motor Parts in good faith, in what he believes is the firm's best interest, and without violating any fiduciary duties owed to it$.$ If$,$ despite these circumstances, Luke exercises poor business judgment, and the corporation declares bankruptcy, under the business judgment rule, Luke is

$$ liable for the debts and the obligations of the failed corporation.

liable only to the extent of his capital contribution.

immune from personal liability.

liable only to the extent that Motor Parts suffers as a result.