A member of the board of directors of Central Communications Co. is offered a license by a third party to operate a cellular phone system. The director does not present this offer to the board of directors for approval but informally mentions it to a fellow board member, who does not think it will be a problem. The director buys the license. Which of the following statements is correct regarding the director's actions? A. The director breached a duty of loyalty by usurping a corporate opportunity. B. The director breached the duty of due diligence. C. The director acted properly in purchasing the license. D. The director breached a duty of care by failing to use prudent business judgment.
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