Apply It: Liability of Directors

Total points: $--/5$

Attempts left: $1$

Identifying the Facts and Issues

Officers of a corporation are considered to be select answer of the corporation. Raj, as an officer of Washington Retirement Home, Inc., owed the corporation a duty of care, which means she must act select answer $,$ exercise the care of a ordinarily select answer $,$ person, and act in the select answer interests of the corporation.

Officer have a duty to make select answer decisions. While Raj was an officer of Washington, the company select answer $,$ keep accurate financial records. As a result of the record keeping, Washington select answer over $$500,000$ in income. A failure to keep accurate records and the resulting lack of collections select answer considered negligence by the officer.