Which duty requires a director to act in the best interest of the corporation and its stakeholders?

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The correct answer, which focuses on the requirement for a director to act in the best interest of the corporation and its stakeholders, is the Duty of Loyalty. This duty mandates that a director prioritize the interests of the corporation over personal gains and avoid situations where personal interests could conflict with those of the corporation.

The Duty of Loyalty encompasses various obligations, such as refraining from self-dealing, avoiding competing with the corporation, and ensuring that any potential conflicts of interest are fully disclosed. By adhering to this duty, directors help protect the corporation's most valuable asset: its trust and integrity, which is vital for maintaining stakeholder confidence and ensuring long-term success.

While the other choices address different aspects of corporate governance, they do not specifically focus on prioritizing the corporation's best interests. The Duty of Care, for example, requires directors to act with the care that a reasonably prudent person would use in similar circumstances, primarily concerning the decision-making process. Preemptive Rights relate to shareholders' ability to maintain their proportional ownership in the corporation, and the Business Judgment Rule provides a framework for protecting directors when they make business decisions in good faith. However, none of these directly encapsulates the obligation to act primarily in the best interests of the corporation and its stakeholders as

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