Under the prudent person standard, officers may rely on information from which sources (select the exception)?

• A. One or more other officers or employees of the corporation or any other corporation
• B. The officer's own personal knowledge
• C. Counsel, public accountants or other experts
• D. Information presented by a committee of the board on which the officer does not serve

Answer: (B)

Under the prudent person standard, a director or officer satisfies due care by reasonably relying on information provided by others who are in a position to know the facts. They may rely on one or more other officers or employees of the corporation or any other corporation, on counsel, public accountants or other experts, and on information presented by a committee of the board on which the officer does not serve. Personal knowledge, while it can inform judgment, is not treated as a source of information to rely on for the decision-making process under this standard. So the exception is relying on one’s own personal knowledge, which is not a permissible sole basis for compliance with the prudent person standard.