Business Judgment Rule Scholarly Resource Discussion

December 2, 2022

Business Judgment Rule Scholarly Resource Discussion

Order Number	636738393092
Type of Project	ESSAY
Writer Level	PHD VERIFIED
Format	APA
Academic Sources	10
Page Count	3-12 PAGES

Instructions/Descriptions

Business Judgment Rule Scholarly Resource Discussion

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your thread must be supported with at least 1 scholarly resource (cited in current Bluebook format). You must also reply to at least 2 classmates’ threads with constructive feedback that forwards the academic conversation. Each reply must be at least 150 words.

Student #1 JB

DB 4; Business Judgement Rule

As defined within our text, there are four elements that protects a director/officer from liability for business actions and/or decisions that they have conducted: 1) act in good faith; 2) where the director/officer is not related to the subject of the business judgement; 3) where the director/officer is notified with respect to the issue of the business judgement to the extent that the director reasonably believes to be apposite under the conditions; and 4) where the director/officer sensibly believes that the business judgment in question is in the best interests of the corporation. Angela Schneeman, The Law of Corporations and Other Business Organizations 9-2a (6th ed. 2006).

Considering these four factors in determining the status of liability for corporate directors and officers, I believe that the business judgment rule is fair and just. The purpose of a business corporation, just like any other form of business entity, is to allow a party to make an appropriate choice of which type of business organization to begin in relation to each type’s advantageous and disadvantageous characteristics. In other words, it is to invoke freedom through individual choice. In regard to any form of business entity chosen, I do not believe that the existence of the business judgment rule does not offer anything particularly positive over any of the other business entities.

For example, if I start a sole proprietorship for my restaurant and I hire a store manager to supervise the store and its employees during my absent, then I will not punish him for a poor outcome resulting from one of his decisions or actions; as long as he was acting in good faith, not practicing negligence, and upheld my business’ best interest. In a sense, this is exactly what the business judgment rule is doing—it is offering a blanket of protection in relation to unfavorable outcomes of business decisions. I believe with certainty that the business judgment rule is consistent with a Christian worldview. The Holy Bible states, “The integrity of the upright guides them, but the crookedness of the treacherous destroys them.” Proverbs 11:3 (English Standard Version). This excerpt can be used in many applications, but it fits so well with this scenario. Directors and officers who act with good faith and integrity will be shepherded through and absolved of liability, but those who act negligently shall be punished.

Student #2

The business judgment rule does not seem too lenient on corporate managers, as it protects from liability only in circumstances where decisions are made in good faith, without personal interest, and in the best interest of the corporation. Angela Schneeman, The Law of Corporations and Other Business Organizations 358 (6th ed. 2012). In matters that a decision was made with blatant disregard for negative outcomes for the corporation, this rule would not protect against liability. Id.

A corporation is a property belonging to its shareholders, whose function is to maximize the return to those shareholders. Rodney D. Chrisman, The Purpose of the Corporation learn.liberty.edu (February 9, 2018). Any corporate actions or decisions should be made with the ultimate end goal of building the wealth of the corporation overall. Id.

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The business judgment rule is consistent with a Christian worldview in that it expects well-informed decisions to be made of good faith and in the best interests of the corporation. Angela Schneeman, The Law of Corporations and Other Business Organizations 358 (6th ed. 2012). A reference in this week’s presentation to Exodus 20:16 “Thou shalt not steal” makes the point that a corporation is the property of its shareholders and therefore wealth should not be stolen from it. When officers of the corporation are acting with the end goal of building gains for the shareholders and the health of the corporation, it fits with a biblical view of how property should be handled.

Business Judgment Rule Scholarly Resource Discussion

RUBRIC

Excellent Quality

95-100%

Introduction

45-41 points

The context and relevance of the issue, as well as a clear description of the study aim, are presented. The history of searches is discussed.

Literature Support

91-84 points

The context and relevance of the issue, as well as a clear description of the study aim, are presented. The history of searches is discussed.

Methodology

58-53 points

With titles for each slide as well as bulleted sections to group relevant information as required, the content is well-organized. Excellent use of typeface, color, images, effects, and so on to improve readability and presenting content. The minimum length criterion of 10 slides/pages is reached.

Average Score

50-85%

40-38 points

More depth/information is required for the context and importance, otherwise the study detail will be unclear. There is no search history information supplied.

83-76 points

There is a review of important theoretical literature, however there is limited integration of research into problem-related ideas. The review is just partly focused and arranged. There is research that both supports and opposes. A summary of the material given is provided. The conclusion may or may not include a biblical integration.

52-49 points

The content is somewhat ordered, but there is no discernible organization. The use of typeface, color, graphics, effects, and so on may sometimes distract from the presenting substance. It is possible that the length criteria will not be reached.

Poor Quality

0-45%

37-1 points

The context and/or importance are lacking. There is no search history information supplied.

75-1 points

There has been an examination of relevant theoretical literature, but still no research concerning problem-related concepts has been synthesized. The review is just somewhat focused and organized. The provided overview of content does not include any supporting or opposing research. The conclusion has no scriptural references.

48-1 points

There is no logical or apparent organizational structure. There is no discernible logical sequence. The use of typeface, color, graphics, effects, and so on often detracts from the presenting substance. It is possible that the length criteria will not be reached.