The Revised Act and the Majority of States Hold That

question 17

Multiple Choice

The Revised Act and the majority of states hold that the officers' and directors' test of the duty of diligence requires a director or officer to discharge her duties:

• A) in good faith.
• B) with the care an ordinarily prudent person in a like position would exercise under similar circumstances.
• C) in a manner she reasonably believes to be in the best interests of the corporation.
• D) All of these.

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Definitions:

Effortful

Requiring or characterized by physical or mental exertion, often in relation to a task or goal that requires significant attention and conscious effort to achieve.

Implicit Memory

Memories that are not consciously recalled but influence behaviors and knowledge, such as skills and tasks.

Classically Conditioned

A training technique where two stimuli are continually linked together; a reaction initially caused by the second stimulus is ultimately triggered by the first stimulus by itself.

Emotional Reactions

Immediate responses to stimuli or events, varying in intensity, that involve psychological and physiological changes and influencing behavior.