Kite Sales.Wendy is president of ABC Kites,a business that manufactures kites.Her company's kites are sold to large toy stores.After Wendy learned a great deal about kites,she started to make kites at home and to promote them to large toy stores.She also started selling kites to friends.Some of the directors learned about her kite sales and accused her of wrongdoing.Wendy denied any wrongdoing.What duty,if any,did Wendy violate?

Question

Quizplus · Accepted Answer

Directors and officers can breach their fiduciary duty of loyalty by preventing corporate opportunity.This breach usually happens when directors or officers own other companies that compete with their corporation.