The exercise of which of the following is required by a duty owed by directors or officers that compares them to a reasonably prudent person in comparable circumstances?
A) honesty,skill,and care
B) diligence,honesty,and fairness
C) diligence,skill,and care
D) prudence,fairness,and honesty

Question

Quizplus · Accepted Answer

The duty owed by directors or officers that requires them to exercise diligence, skill, and care is often referred to as the "duty of care." This duty compares their actions to those of a reasonably prudent person in similar circumstances, ensuring they act in the best interests of the corporation with the appropriate level of expertise and attention.

The Exercise of Which of the Following Is Required by a Duty