In What Way Are a Duty of Competence and a Fiduciary

question 10

Multiple Choice

In what way are a duty of competence and a fiduciary duty similar?

• A) Both are obligations owed to a corporation's creditors.
• B) Both are strict liability obligations owed to external stakeholders.
• C) Directors are relieved from them by delegating authority to officers.
• D) Neither is an obligation owed by a director that can be delegated.

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Definitions:

Problem-Factoring Process

A methodical approach to solving problems by breaking them down into smaller, more manageable components.

Logical

Pertaining to or characterized by clear, sound reasoning and thought.

Multiple Perspectives

The consideration of different viewpoints or angles on a particular issue or topic.

Informational Report

A document that provides facts and data without analysis or recommendations, often used for reference or record-keeping.