Chip is a director of Diners Restaurants, Inc. Chip would breach his duty of loyalty if he
A) becomes a director of Fluffy Mattresses, Inc., a noncompeting firm.
B) buys stock in Gulpin' Foods Corporation, a competing firm.
C) votes for Diners to buy a controlling interest in Eateries, Inc., which causes Diners to suffer a loss.
D) votes against Diners' purchase of a controlling interest in Eateries, Inc., which causes Diners to suffer a loss.
Correct Answer:
Verified
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