Question

A director or corporate officer who usurps a corporate opportunity would be violating the director's fiduciary duty called the ________.

a) Duty of loyalty
b) Duty of care
c) Duty of disclosure
d) Duty of obedience

Answer 1

The correct answer is a) Duty of loyalty. When a director or corporate officer usurps a corporate opportunity, they are violating the director's fiduciary duty known as the duty of loyalty.

Step-by-step explanation:

The correct answer is a) Duty of loyalty. When a director or corporate officer usurps a corporate opportunity, they are violating the director's fiduciary duty known as the duty of loyalty. This duty requires directors to act in the best interests of the company and its shareholders.

Usurping a corporate opportunity means taking advantage of an opportunity that belongs to the corporation and using it for personal gain. This can include starting a competing business or purchasing a valuable asset without informing the corporation.

By engaging in such behavior, the director is breaching their duty of loyalty and jeopardizing the interests of the company and its shareholders.