Etta Is a Director of Trendy Stuff Corporation

question 53

Multiple Choice

Etta is a director of Trendy Stuff Corporation.Without informing Trendy,Etta goes into business with GR8 Things,Inc.,in competition with Trendy.Etta is li-able for breach of

• A)no duty or rule
• B)the business judgment rule.
• C)the duty of care.
• D)the duty of loyalty.

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Definitions:

Contributed Income

Financial support received by nonprofit organizations through donations, grants, or gifts rather than earned income.

Commercial Transformation

Refers to the significant change in the commercial activities, strategies, processes, or models of a business to adapt to market demands or leverage new opportunities.

Earned Income

Income derived from active participation in a trade or business, including wages, salaries, tips, and other forms of compensation.

Business Opportunities

Prospects for creating new business ventures or expanding existing ones, potentially leading to increased profit and growth.