Hank is a director of the Cardinal Corporation.Cardinal is in the business of marketing new inventions.Katrina has just invented a new product and wants to have it marketed by Cardinal,so she shows and discusses the new product with Hank.Hank thinks the new product has the potential to generate huge profits,so Hank suggests that he handle the marketing personally,leaving Cardinal out of it.Hank's action is best described as which of the following?

Question

Quizplus · Accepted Answer

Hank is a director of Cardinal Corporation, meaning he owes a duty of loyalty to the corporation. By suggesting that he handle the marketing of Katrina's new invention personally, he is potentially taking away a business opportunity that Cardinal could have pursued. This is a violation of the duty prohibiting usurping a corporate opportunity, as he should have presented the opportunity to Cardinal to pursue.

Hank Is a Director of the Cardinal Corporation