David,the CEO of Nivera Furnishings,stealthily utilizes confidential patents and processes of the company to start a similar furnishing company that grows to be Nivera's biggest rival in the market.In terms of the duty of loyalty,David's act is an example of ________.

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David's act of utilizing confidential patents and processes to start a similar furnishing company is a clear example of competing with the corporation. As the CEO of Nivera Furnishings, David was duty-bound to work in the best interests of the company and use his position to further its interests rather than his own. However, by starting a rival company, David breached his duty of loyalty towards Nivera Furnishings and directly competed with the corporation, which is not permissible under law.

David,the CEO of Nivera Furnishings,stealthily Utilizes Confidential Patents and Processes