When Board Members Act in the Best Interest of the Organization

question 8

Multiple Choice

When board members act in the best interest of the organization and not on behalf of themselves, they are demonstrating:

• A) Duty of care.
• B) Duty of loyalty.
• C) Duty of obedience.
• D) None of these.

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Definitions:

Customer-focused

A business orientation that prioritizes the needs and preferences of customers in product and service design, and company policies.

Market Segments

Divisions within a market defined by specific criteria, where consumers have similar needs, preferences, or characteristics.

Product Service

A combination of physical products and services provided as a bundle to meet a consumer's need or desire.

Limited Partnership

A form of partnership consisting of at least one general partner who manages the business and assumes legal debts and obligations, and one or more limited partners who are liable only to the extent of their investments.