Directors of a corporation are held to a duty of care to make decisions in a prudent business manner.

Name: Directors of a corporation are held to a duty of care to make decisions in a prudent business manner.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This statement is true. Directors have a duty of care to act in the best interest of the corporation and exercise reasonable care, skill, and diligence in making business decisions. This duty helps to protect the corporation and its shareholders from bad decisions or negligence by the directors.

Directors of a Corporation Are Held to a Duty of Care