The business judgment rule protects corporate officers and directors when: _________

a. they have a financial self-interest in the disputed transaction.
b. they are unaware of some of the material aspects of a decision.
c. they set up a committee to establish a decision-making procedure that serves the best interests of the corporation.
d. the liability stemmed from a breach of duty.

The business judgment rule protects corporate officers and directors when option c. they set up a committee to establish a decision-making procedure.

What is the business judgment rule:

It is considered as the legal principle that protected the board of directors from breach of the liability of fiduciary duty since the directors should be acted in good faith of the shareholders and assure the logical and well-informed decision-making process

So based on this, we can say that the option c is correct.

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