Which of the following best demonstrates a situation where a court would rule in favor of directors exercising the "business judgment rule?" O York is NOT a director, but is a majority shareholder of Woofers R Us. a high-end dog grooming service. He partakes in a vote with the other shareholders to expand into cat grooming. O The stock price fell at Smart Dumasse Inc. following the decision of Trudy and the rest of the board to stop using an environmentally safe method of fermentation. The board conducted substantial research, did NOT have a personal interest, and believed it was the best decision in the current market. O Zinnia is a graduate of a highly-ranked business school and was recently voted in as a director of a business analytics firm. Zinnia and the other five directors were faced with an intriguing investment opportunity and "pulled the trigger that same day, thinking that the opportunity would be lost if they waited. O Shayla is a director of a well-known cosmetic line that conducts business internationally. The company is looking to increase its presence in Asia, so they introduce the idea of a new product line. Accountants and lawyers of the company presented tables and reports that showed that the expansion was NOT a good idea at this time due to changing regulations for international companies. Shayla completely ignored these reports despite the known risks to the company. O Dahlia is a director of a small but successful advertising firm. The board was presented with an offer to be acquired by a large marketing conglomerate. Dahlia did NOT tell the rest of the board that she was a majority shareholder of the large marketing conglomerate that was on the other side of the transaction.

Which of the following best demonstrates a situation where a court would rule in favor of directors exercising the "business judgment rule?" O York is NOT a director, but is a majority shareholder of Woofers R Us. a high-end dog grooming service. He partakes in a vote with the other shareholders to expand into cat grooming. O The stock price fell at Smart Dumasse Inc. following the decision of Trudy and the rest of the board to stop using an environmentally safe method of fermentation. The board conducted substantial research, did NOT have a personal interest, and believed it was the best decision in the current market. O Zinnia is a graduate of a highly-ranked business school and was recently voted in as a director of a business analytics firm. Zinnia and the other five directors were faced with an intriguing investment opportunity and "pulled the trigger that same day, thinking that the opportunity would be lost if they waited. O Shayla is a director of a well-known cosmetic line that conducts business internationally. The company is looking to increase its presence in Asia, so they introduce the idea of a new product line. Accountants and lawyers of the company presented tables and reports that showed that the expansion was NOT a good idea at this time due to changing regulations for international companies. Shayla completely ignored these reports despite the known risks to the company. O Dahlia is a director of a small but successful advertising firm. The board was presented with an offer to be acquired by a large marketing conglomerate. Dahlia did NOT tell the rest of the board that she was a majority shareholder of the large marketing conglomerate that was on the other side of the transaction.