Punam Was the Director of a Broadly Held Corporation That

question 147

Multiple Choice

Punam was the director of a broadly held corporation that made educational software. Without the knowledge or consent of the board of directors, Punam started a competing business that she ran from home. Which of the following is true?

• A) Punam has breached a fiduciary duty owed to the corporation.
• B) Punam is only a director, so she owes no special duty to the corporation.
• C) Punam can compete with the business, as long as she doesn't use confidential documents belonging to the corporation.
• D) Punam owes the shareholders of the corporation a fiduciary duty, so they could sue her if they suffer a loss.
• E) Whether or not Punam can compete with the business depends on whether her written contract prohibits it.

---

Definitions:

Affection

A feeling of fondness or tenderness toward someone or something, often demonstrated through physical closeness or touching.

Bowlby

A reference to John Bowlby, a British psychologist best known for his work in developing attachment theory, which explores the importance of early emotional bonds between a child and their caregivers.

Evolutionary Forces

Factors that influence the genetic composition of a population through natural selection, gene flow, mutation, and genetic drift.

Infants

Very young children or babies, especially those from birth up to one year old.