Identify the Duty of Obedience According to Which Board Members

question 60

Multiple Choice

Identify the duty of obedience according to which board members should strive toward corporate objectives and are not permitted to act in a way that is inconsistent with the central goals of an organization.

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

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Definitions:

Not-For-Profit

Organizations that operate for purposes other than generating profit, often focusing on social, educational, or charitable endeavors.

Cash

Money in the form of currency, which includes banknotes and coins, representing a medium of exchange for the purchase of goods or services.

Retained Earnings

The portion of net income that is retained by a company rather than distributed to its shareholders as dividends.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing the ownership interest of the shareholders.