A duty owed by directors or officers that compares them to a reasonably prudent person in comparable circumstances requires the exercise of which of the following?

Question

Quizplus · Accepted Answer

The duty of care owed by directors or officers requires them to act with the level of diligence, skill, and care that a reasonably prudent person would exercise in similar circumstances. Honesty and fairness are also important, but they are not the sole focus of this duty. Therefore, options A and D are not fully accurate. Option B includes honesty and fairness but misses out on the crucial element of skill, making it slightly less accurate than option C.

A Duty Owed by Directors or Officers That Compares Them