Risk Management

Quiz
October 29, 2020
Philosophy.
October 29, 2020

Discuss the possibility of a not-for-profit health careorganization issuing stock and why the management of such anorganization might want to do this. Explain yourrationale.

Wendy is the president of a business that manufactures kites.The kites of her company, ABC Kites, are sold to large toy stores.After Wendy learned a great deal about kites, she started to makekites at home. She started selling kites to friends, and she alsostarted to make inquiries regarding selling her kites to larger toystores in the area and to make a few sales to them. Her plan was tostart small and then leave ABC after she had increased sales. Shedid not work on her side project while she was on the clock withABC. Some of the directors learned about her kite sales and accusedher of wrongdoing. Wendy denied any wrongdoing and pointed out thatshe did not work on her project while she was on the job with ABC.What duty, if any, did Wendy violate?
a.    She did not commit any violation.
b.    She violated the duty of loyalty.
c.    She violated the duty of care.
d.    She violated the duty of understanding.

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