Drew, an officer of Energy Resources Inc., uses special software to help identify employees who might commit embezzlement.One reason for Drew's use of this software may be to avoid liability for
A)embezzlement.
B)negligence.
C)violation of the business judgment rule.
D)violation of the duty of loyalty.

Question

Quizplus · Accepted Answer

By using special software to detect potential embezzlement, Drew is taking proactive measures to prevent harm to the company. This can help avoid potential liability for negligence if an employee does commit embezzlement and it is discovered that the company did not take sufficient preventative measures.

Drew, an Officer of Energy Resources Inc