Mark is the treasurer of Sky-Hi-Tech Corporation and,as such,he is responsible for protecting the assets of the corporation.One of Mark's subordinates,Jill,is in charge of reconciling the monthly corporate bank statements.Over a period of several months,Jill embezzles a large amount of money from Sky-Hi-Tech,covering up the theft using her bank reconciliations.If Mark had adequately supervised Jill,she could not have embezzled this money.Mark's actions (or inactions)constitute a breach of his duty of:

Question

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Mark's duty as treasurer includes ensuring that the corporation's assets are protected. Inadequate supervision of a subordinate who has access to corporate funds constitutes a breach of due care, which is the standard of care an officer or director owes to the corporation and its shareholders. Mark's actions have allowed Jill to embezzle money from the corporation, which could have been prevented with proper supervision, thus breaching his duty of due care.

Mark Is the Treasurer of Sky-Hi-Tech Corporation And,as Such,he Is