Question

A careless director or directors can be held personally liable for harm done to the corporation if they failed to act with A. cumulative voting. B. figurehead role. C. codetermination. D. due care. E. accountability.

Answer 1

Answer:

D. Due care

Explanation:

In business, due care refers to the act  of always maintaining reasonable  behavior that wouldn't harm other people . The 'harm' could include both social or monetary harm.

Directors held one of the highest position in the company.

Due to their important status, every action that they make often used by other people to judge the company where they work in. If for example, the directors are behaving badly in public, more consumers will view that companies negatively.

Because of this, other board of directors often voted out one of the directors who misbehave in order to maintain the reputation of the company.