Future Business Leaders of America (FBLA) Entrepreneurship Practice Test

Which duty requires employees to act in the best interest of their employer?

1. Duty of Care

2. Duty of Loyalty

3. Duty of Disclosure

4. Duty of Faithfulness

The correct answer is: Duty of Loyalty

The duty that requires employees to act in the best interest of their employer is the Duty of Loyalty. This principle establishes that employees must prioritize their employer's interests and objectives when performing their job functions. It emphasizes honesty and integrity in operations and decisions, ensuring that employees do not engage in activities that could harm the employer's interests or lead to conflicts of interest. This obligation extends to refraining from actions that could undermine the employer's reputation or competitive advantage. By adhering to the Duty of Loyalty, employees help foster a trustworthy and cooperative work environment, ultimately benefiting both the employer and the employees as they work towards common goals. In contrast, the Duty of Care involves employees fulfilling their responsibilities with a reasonable level of competence and diligence. The Duty of Disclosure refers to the necessity of sharing relevant information that may impact decision-making processes, ensuring transparency within the organization. The Duty of Faithfulness, while related, is not a commonly defined term in the context of employee obligations compared to the other duties. Each of these duties plays a role in professional conduct, but the Duty of Loyalty specifically speaks to the commitment to the employer’s interests.