[Vanessachy]

In order to comply with a director’s duty of loyalty to a corporation, what action(s) should a director take when presented with a corporate opportunity?

a. Accept the opportunity and disclose the acceptance to the corporation

b. Accept the opportunity and not offer it to the corporation.

c. Offer the opportunity to the corporation and accept it if the corporation rejects it

d. Reject the opportunity and not offer it to the corporation

The answer is C, I am kind of confused with the question. So the meaning is that if the vendor offer a corporation opportunity to the director, the director need to ask the corporation first. If the corporation rejects it, the director can take it personally?

Far, 64 82
Reg, 60 86
Aud, 74 82
Bec, 70 81
Done done done! I did it!!!
Licensed CPA in MA, issued October 2016

Far 10/26/2015, 64, 1/4/2016, 82
Reg 7/10/2015, 60, 2/27/2016, 86
Aud, 5/9/2016, 74 (ouch), 7/26/2016, I cannot wait to take this test again
Bec, 6/10/2016, 70,9/8 retake

[Anonymous]

Yes. Yes.

It's ethical to do that.

Just looking through your signature makes me curious. What section are you taking next?

[Knight4CPA]

best to my knowledge, it is the director's duty to first look out for the company he is employed by, if he were to accept the opportunity prior to presenting to the company that would be disloyal to the employer. To remain loyal, first run it by the company

AUD: 70, 80✔ (Expires 1/18/2017 - / Ninja MCQ / CPAExcel MCQ)
REG: 61, 70, 75✔ (Expires 2017 - Ninja MCQ / CPAExcel MCQ)
BEC: 78✔(Expires 5/17/2017 - Ninja MCQ / Becker Flashcards / NinjaNotes)
FAR: 57 (just to get trigger time I scheduled 1 week after REG) Retake 5/13/16

[Author]

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