Which of the Following Is NOT a Major Duty Which

question 60

Multiple Choice

Which of the following is NOT a major duty which the agent owes to his principal?

• A) Duty to obey instructions.
• B) Duty to act in good faith and with loyalty.
• C) Duty to indemnify.
• D) Duty to exercise care.

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Definitions:

Restricted Fund Method

An accounting method used by not-for-profit organizations to distinguish between resources that are restricted by donor-imposed stipulations and those that are not.

Internally Restricted

Funds or assets within an organization that are designated for a specific purpose by the entity's management, not external restrictions.

Externally Restricted

Funds or resources that are restricted in use by external parties or agreements, often specified for particular purposes or projects.

Diversity

The inclusion of different types of people (such as people of different races, cultures, or genders) in a group or organization.