Which of the Following Is Likely to Be a Breach

question 77

Multiple Choice

Which of the following is likely to be a breach of a corporate officer's/director's duty of care?

• A) failing to anticipate a drop in the consumer demand of the company's product
• B) failing to make a reasonable investigation of relevant facts
• C) failing to predict the startup of a new competitor
• D) failing to foresee a severe rise in the interest rate
• E) all of the above

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Definitions:

New York Stock Exchange

A leading global financial exchange where stocks and other securities are bought and sold, located in New York City.

Excess Reserves

The reserves that banks hold over and above the regulatory requirements set by the central bank, often seen as a liquidity buffer.

Reserve Requirement

The reserve requirement is a central bank regulation that sets the minimum amount of reserves that must be held by a commercial bank, usually as a percentage of the bank's deposits.

Lend Out

Refers to the act of providing something, usually money, to someone with the expectation that it will eventually be returned, often with interest.