Which Statement Best Exemplifies the Standard of Care Expected of Directors

question 22

Multiple Choice

Which statement best exemplifies the standard of care expected of directors?

• A) The care,diligence,and skill that a reasonable shareholder would expect in comparable circumstances.
• B) The care,diligence,and skill that the average person would exercise in comparable circumstances.
• C) The care,diligence,and skill that a professional would exercise in comparable circumstances.
• D) The care,diligence,and skill that a reasonably prudent person would exercise in comparable circumstances.

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Definitions:

Safe Deposit Box

A safe deposit box is a secure container, usually held within a bank, where individuals can store valuable items such as documents, jewelry, and securities.

Expected Pay

The anticipated or forecasted amount of money one expects to receive for work performed or investment.

Probability

A measure of the likelihood that a specific event will occur, expressed as a number between 0 and 1.

Hourly Rate

A rate of payment for one hour of work, often used to calculate wages for part-time or contract employees.