To avoid potential liability for misconduct in corporate operations, directors can refrain from reasonable supervision of work delegated to
A)corporate officers.
B)corporate employees.
C)board committees.
D)none of the choices.

Question

Quizplus · Accepted Answer

Directors are expected to exercise reasonable supervision over all aspects of corporate operations, including corporate officers, employees, and board committees. Refraining from supervising these areas does not avoid potential liability; it may actually increase it due to negligence.

To Avoid Potential Liability for Misconduct in Corporate Operations, Directors