The Exercise of Which of the Following Is Required by a Duty

question 15

Multiple Choice

The exercise of which of the following is required by a duty owed by directors or officers that compares them to a reasonably prudent person in comparable circumstances?

• A) honesty,skill,and care
• B) diligence,honesty,and fairness
• C) diligence,skill,and care
• D) prudence,fairness,and honesty

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Definitions:

Compounded Annually

This refers to the process of calculating interest on an investment or loan on a yearly basis, where interest from one year is added to the principal for calculation of interest in the next year.

Present Value

The current value of a future sum of money or stream of cash flows, given a specified rate of return.

Compounded Quarterly

The process of calculating interest on both the initial principal and the accumulated interest of previous periods on a quarterly basis.

Compound Interest

The interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods.