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:

Complex Products

Products that have multiple components, intricate features, or require advanced technology for production, often requiring specialized knowledge to design, manufacture, and use.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to related products and services based on the activities they require.

Fixed Overheads

Expenses that remain constant regardless of production or sales volumes within a specific time frame, like lease payments or wages.

Cost Behaviour

The manner in which a cost changes in relation to changes in business activity levels.