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Which of the following requires that an employee refrain from acting in a manner contrary to the employer’s interest?Question 12

Question

Which of the following requires that an employee refrain from acting in a manner contrary to the employer’s interest?

Question 12

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Solution

The situation described pertains to the concept of fiduciary duty or duty of loyalty that an employee has towards their employer. This legal obligation requires that an employee must act in good faith and refrain from engaging in activities that would conflict with or jeopardize the interests of their employer.

In simple terms, an employee is expected to prioritize their employer's interests over personal interests when making decisions or taking actions that could affect the company. Violations of this duty can lead to legal consequences and potential termination.

In summary, the duty of loyalty is the requirement for employees to refrain from acting contrary to their employer's interests, ensuring that they make decisions that align with the company’s best interests.

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