In evaluating conflicts of interest, which test is used to determine whether a director’s opportunity belongs to the corporation based on its line of business?

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The Line of Business Test is used to determine whether a director’s opportunity belongs to the corporation based on its line of business. Under the corporate opportunity doctrine, an opportunity that falls within the corporation’s current or prospective business area is a corporate opportunity; the director must present it to the corporation rather than pursuing it himself. This test focuses on whether the opportunity is within the company’s scope, not on fairness or investor perceptions. If the opportunity aligns with the company’s line of business, it belongs to the corporation; if it does not, the director may pursue it personally (subject to other fiduciary duties). The other tests touch on different lenses for evaluating transactions, but they don’t address whether an opportunity is controlled by the corporation's business line, making the Line of Business Test the best fit here.