Asked by Viraj Mistry on Jul 17, 2024
Verified
To avoid potential liability for misconduct in corporate operations, directors can refrain from reasonable supervision of work delegated to
A) corporate officers.
B) corporate employees.
C) board committees.
D) none of the choices.
Reasonable Supervision
The oversight effort expected from a person in a supervisory role to ensure subordinates are performing tasks lawfully and ethically.
Corporate Employees
Individuals who work for a corporation and are often subject to its policies, benefits, and regulations.
- Gain insight into the legal and fiduciary roles of corporate directors and officers.
Verified Answer
SC
Suléze CronjéJul 18, 2024
Final Answer :
D
Explanation :
Directors are expected to exercise reasonable supervision over all aspects of corporate operations, including corporate officers, employees, and board committees. Refraining from supervising these areas does not avoid potential liability; it may actually increase it due to negligence.
Learning Objectives
- Gain insight into the legal and fiduciary roles of corporate directors and officers.
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