A Fiduciary Duty Exists Between a Professional and His or Her

question 41

Multiple Choice

A fiduciary duty exists between a professional and his or her client when

• A)the professional lends money to the client.
• B)the principle of equity imposes such a duty.
• C)the client owes money to the fiduciary.
• D)a special relationship of trust exists.
• E)a contract exists between the professional and the client.

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Definitions:

Private Goods

Goods that are excludable and rivalrous in consumption, meaning they can only be used by one person at a time.

Rival Consumption

A situation where the consumption of a good or service by one person reduces its availability for consumption by another person.

Excludable

A characteristic of a good or service that means it can be limited to only paying customers or those who meet certain criteria.

Market Demand

The total quantity of a good or service that all consumers in a market are willing and able to purchase at various prices.