Which of the Following Duties of Board Members Suggests That

question 27

Multiple Choice

Which of the following duties of board members suggests that conflicts of interest are always to be resolved in favor of the corporation?

• A)Duty of care
• B)Duty of good faith
• C)Duty of candor
• D)Duty of loyalty

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Definitions:

Overhead Cost

The ongoing expenses of operating a business that are not directly tied to the production of goods or services, such as rent and utilities.

Product Line

A group of related products under a single brand sold by the same company.

Facility Level Activity

Operations and processes that support the overall functioning of a facility, but are not directly tied to the production of goods or services.

Veterinary Clinic

A medical facility focused on the diagnosis, treatment, and care of animals, offering services like surgery, dental care, and preventive medicine.