In Which of the Following Situations Will a Director Be

question 30

Multiple Choice

In which of the following situations will a director be found to have breached their duty to act in good faith?

• A)The director has put themselves in a situation where their duties to the company and their personal duties conflict.
• B)The director has agreed to vote in a certain way at future board meetings.
• C)The director has done something which no reasonable director could regard as being in the interests of the company.
• D)The director has exercised one of their powers primarily in order to gain some private advantage.

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Definitions:

Standard Costing System

An accounting method that applies predetermined costs to measure the cost of goods sold and performance.

Continuous Improvement

An ongoing effort to improve products, services, or processes by making incremental improvements over time or breakthrough improvements all at once.

Process Perspective

An approach to management that focuses on the optimization and improvement of business processes to achieve better performance and outcomes.

Budgeted Costs

Projected expenses for a specified period under budgetary control, guiding spending and financial planning.