Intransitive verbs are action verbs but unlike transitive verbs, they do not have an object receiving the action. Notice there are no words after the verb sang. More examples of intransitive verbs: I laughed.
DEFINITION of 'Business Judgment Rule'. A regulation that helps to make sure a corporation's board of directors is protected from misleading allegations about the way it conducts business. Unless it is apparent that the board of directors has blatantly violated some major rule of conduct, the courts will not review or question its decisions or dealings.
The objective of maximizing stock prices is a relevant objective only for firms which are publicly traded. How, then, can corporate finance principles be adapted for private firms? For firms which are not publicly traded, the objective in decision making is the maximization of firm value. The investment, financing and dividend principles we will develop in the chapters to come apply for both publicly traded firms, which focus on stock prices, and private businesses, that maximize firm value.