To Satisfy the Fiduciary Duty of Care,directors and Officers of a Corporation

question 73

True/False

To satisfy the fiduciary duty of care,directors and officers of a corporation must discharge their duties in good faith,with the care that an ordinary prudent person in a similar position would use under similar circumstances,and in a manner they reasonably believe to be in the best interests of the corporation.

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Definitions:

Fear-Arousing Message

A communication strategy that uses the threat of negative consequences to motivate changes in attitudes or behaviors.

Persuadability

The susceptibility of an individual to change their attitudes or beliefs in response to an argument or message.

Education And Intelligence

The interplay between the acquisition of formal knowledge, skills through schooling, and the innate or developed ability to understand, reason, and solve problems.

Psychological Reactance

A psychological response which occurs when individuals perceive their freedoms or choices are being limited, prompting them to reclaim or reassert lost freedoms.