Carlo is a director of Desserts Italiano, Inc. Carlo opposes a tender offer that is in the company's best interest because its acceptance would cost his position as a director. Carlo is most likely liable for a breach of Select one: a. the duty of loyalty. b. none of the choices. c. the business judgment rule. d. the duty of care.

Question

Business

Frederick Crane

2 July, 07:21

Carlo is a director of Desserts Italiano, Inc. Carlo opposes a tender offer that is in the company's best interest because its acceptance would cost his position as a director. Carlo is most likely liable for a breach of Select one: a. the duty of loyalty. b. none of the choices. c. the business judgment rule. d. the duty of care.

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Answers (1)

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Kamila Riddle · Answer 1

a. the duty of loyalty

Explanation:

Based on the information provided within the question it can be said that in this scenario Carlo is most likely liable for a breach of the duty of loyalty. This is the principle in which directors and officers of a corporation must act in the best interest of the corporation even if it is not in their best personal interest. Which Carlo' breached by not accepting the offer, which would have been great for the company.