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 loyalty refers to a director's legal and ethical obligation to act in the best interests of the corporation and its shareholders, and to avoid conflicts of interest. This duty requires directors to prioritize the needs of the corporation over their personal interests, and to disclose any potential conflicts of interest. Acting diligently and prudently is among the obligations that fall within the duty of loyalty. Therefore, option D is the best choice.

A Director Has a Legal and Ethical Obligation to Act