An Agent Who Refuses to Follow Legal Instructions of a Principal

question 1

True/False

An agent who refuses to follow legal instructions of a principal has breached the duty of care.

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Definitions:

Stockholder

An individual or entity that owns shares in a corporation, giving them ownership interest.

Dividends Account

An account used in bookkeeping that records the dividends paid out to shareholders from a corporation's earnings.

Common Stock

A type of equity security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits via dividends.

Transfer of Assets

The act of moving ownership of assets from one party to another, which could involve selling, gifting, or exchanging.