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The board of directors of a Delaware corporation makes an informed, good-faith business decision to acquire another company, but the acquisition later proves unprofitable. A shareholder sues the directors for breach of the duty of care. A court applying Delaware law will most likely:

Hold the directors liable because the decision lost money Apply strict liability to all merger decisions Require the directors to personally reimburse the shareholders Apply the business judgment rule and decline to second-guess the decision

Correct Answer:

Apply the business judgment rule and decline to second-guess the decision

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