One of the Fiduciary Duties of Directors Is the Duty

question 41

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:

Other Revenue And Expenses

These refer to the income and costs that are not related to the main business activities of a company.

Purchases Account

An account used in the accounting for all goods bought for resale or for use in the production process.

Net Income

The total earnings of a company after subtracting all expenses from revenues, including taxes and interest, showcasing the company's financial performance over a specific period.

Operating Expenses

Expenses related to the day-to-day functions of a business outside of cost of goods sold.