A Shareholder Has an Obligation Not to Compete with the Corporation

question 20

True/False

A shareholder has an obligation not to compete with the corporation.

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Definitions:

Duty of Care

The legal obligation to avoid acts or omissions which could foreseeably harm others.

Negligence

A failure to exercise the care that a reasonably prudent person would exercise in similar circumstances, leading to harm or damage.

Professional Designation

A formal certification demonstrating a certain level of expertise or specialization in a particular field, frequently required in professions such as law, medicine, and accounting.

Professional Associations

Organizations founded by individuals in the same profession aimed at advancing their interests, standards, and development.