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Question
Michelson was chairman of the board and chief executive officer of a computer manufacturing firm. When considering whether to purchase CompuPrint, the manufacturer of computer printers, Michelson examined CompuPrint's financial records, consulted with legal and financial experts, and conducted an in-depth study of the marketplace and decided that it would be profitable for his corporation to purchase CompuPrint. If CompuPrint turns out to be a poor investment and a court hears a case challenging Michelson's decision, the court will most likely judge his conduct under the:
A. business judgment rule.
B. insider trading rule.
C. fairness rule.
D. shareholder protection rule.
Answer
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