The __________ requires that officers and directors not take personal advantage of a desirable business investment that rightfully belongs to the corporation.
A) right of first refusal
B) corporate opportunity doctrine
C) line of business test
D) expectancy test

Question

Quizplus · Accepted Answer

The corporate opportunity doctrine requires that officers and directors not take personal advantage of a desirable business investment that rightfully belongs to the corporation. The right of first refusal refers to a contractual right to match or better an offer made by a third party for a particular asset; the line of business test is used to determine whether a particular activity falls within a corporation's stated purpose; and the expectancy test is used to determine whether a shareholder has a legitimate expectation of a certain benefit or outcome.

The __________ Requires That Officers and Directors Not Take Personal