Management's duty to have a rational business purpose,avoid illegal behavior,and make informed decisions refers to its
A)duty of care.
B)duty of loyalty.
C)duty of openness.
D)duty of fairness.

Question

Quizplus · Accepted Answer

The duty to have a rational business purpose, avoid illegal behavior, and make informed decisions is known as the duty of care. This is a fundamental duty that all members of management, including board members, have towards the organization they serve. It involves making decisions that are in the best interest of the company, based on a reasonable and informed assessment of the facts at hand. Failure to fulfill this duty can result in legal liability and reputational damage for the company.

Management's Duty to Have a Rational Business Purpose,avoid Illegal Behavior,and