There Are No Accountants on the Board of the Oriole

question 96

Multiple Choice

There are no accountants on the board of the Oriole Corporation.The board routinely relies on a CPA to explain the financial situation of the corporation.The board does not do an independent analysis of the CPA's report,but acts with care and diligence.In these circumstances,the board is:

• A) violating the duty of loyalty
• B) violating the duty to exercise due care
• C) violating the business judgment rule
• D) violating the duty of obedience
• E) not violating any duty

---

Definitions:

Hypnotist

A practitioner who induces a state of consciousness in a person in which they purportedly lose the power of voluntary action and become highly responsive to suggestion or direction.

Plausible

An adjective describing something that appears to be reasonable or probable, making it worthy of belief or acceptance.

Hypnosis

is a trance-like state of focused attention and enhanced suggestibility, often used for therapeutic purposes to access subconscious thoughts and behaviors.

Vivid

This term describes perceptions, images, or memories that are strikingly clear, detailed, and intense, making them easily remembered or hard to ignore.