One of the Fiduciary Duties of Directors Is the Duty

question 62

Multiple Choice

One of the fiduciary duties of directors is the duty not to compete with the corporation. They may pursue their own business interest, but they may not:

• A) use corporate resources do do so.
• B) hire away personnel for their own business.
• C) use corporate facilities to do so.
• D) All of the answer choices are correct.

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Definitions:

Variable Costing

An accounting approach that includes only variable costs—direct materials, direct labor, and variable manufacturing overhead—in product costs, excluding fixed manufacturing overhead.

Unit Product Cost

The calculated cost of producing a single unit of product, which includes both fixed and variable costs.

Total Period Cost

The entire sum of expenses incurred by a business during a specific period, including both fixed and variable costs.

Absorption Costing

An accounting method that includes all manufacturing costs (direct labor, materials, and overhead) in the cost of a product.