Final answer:
The nonprofit organization's board is practicing the duty of care by seeking financial expertise for managing investments, ensuring decisions are informed and prudent.
Step-by-step explanation:
When a nonprofit organization's finance committee listens to the advice of a financial expert on how they should manage the organization's investments, the board is practicing the duty of care. This duty ensures that board members make informed decisions with a level of prudence and diligence that a reasonably prudent person would exercise in a similar position and under similar circumstances. It involves gathering all the information necessary to make decisions, including seeking expert advice when topics are beyond the board's expertise. The board is practicing the duty of care by listening to the advice of a financial expert on how to manage the organization's investments. The duty of care refers to the responsibility of board members to make informed and reasonable decisions in the best interest of the organization. By seeking advice from a financial expert, the board is fulfilling their obligation to exercise care and diligence in managing the organization's finances.