The Duty of Loyalty Requires Directors to

question 71

Multiple Choice

The duty of loyalty requires directors to

• A) Act in the best interests of the corporation
• B) Act in the best interests of the shareholder
• C) Act in the best interests of management
• D) All of these

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Definitions:

Congruent

In agreement or harmony; alignment between two or more elements, often referring to values, beliefs, and actions.

Leader-Member Exchange Model

An approach that emphasizes the importance of the two-way (dyadic) relationship between leaders and followers, focusing on the quality of these interactions.

Productivity

The efficiency with which an individual, company, or economy can convert inputs into useful outputs, often measured as the ratio of output to input.

Implement

To put a decision, plan, strategy, or law into effect.