Asked by Kajal Verma on Jul 17, 2024
Verified
Liability for negligence in the performance of corporate duties may extend to
A) directors only.
B) officers only.
C) directors and officers.
D) none of the choices.
Corporate Duties
Responsibilities and obligations that members of a corporation, typically directors and officers, are required to follow in the interest of the corporation.
- Understand the legal aspects of corporate accountability and liability, including for wrongful acts and financial mismanagement.
Verified Answer
BD
Brianna DeWittJul 20, 2024
Final Answer :
C
Explanation :
Directors and officers can both be held liable for negligence in the performance of their corporate duties. This is because both groups owe a duty of care to the corporation and its shareholders, and failing to meet this standard can result in legal consequences.
Learning Objectives
- Understand the legal aspects of corporate accountability and liability, including for wrongful acts and financial mismanagement.