A director has a legal and ethical obligation to act diligently and prudently in conducting the affairs of the corporation.This is called the:

Question

Quizplus · Accepted Answer

The duty of care is the legal and ethical obligation of a director to act with diligence and prudence in managing the affairs of the corporation. This duty requires directors to make informed decisions, exercise reasonable judgment, and act in the best interests of the corporation and its shareholders. The duty of care is a fundamental aspect of corporate governance and is essential for protecting the long-term interests of the corporation and its stakeholders.

A Director Has a Legal and Ethical Obligation to Act