A Duty That Directors and Officers Have Not to Act

question 69

Multiple Choice

A duty that directors and officers have not to act adversely to the interests of the corporation and to subordinate their personal interests to those of the corporation and its shareholders is known as ________.

• A) duty of care
• B) duty of loyalty
• C) duty of obedience
• D) self-dealing

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Definitions:

OB Topics

Stands for Organizational Behavior topics, encompassing the study of how people interact within groups and organizational settings.

External Environment

Factors outside an organization that can affect its performance and strategies, including economic conditions, competition, and regulatory changes.

Open Systems Perspective

is a viewpoint in organizational theory that organizations are entities influenced by, and interacting with, their external environment.

Computer Simulation

The use of computer models to replicate complex systems or processes for the purpose of experimenting or predicting outcomes in various scenarios.