A Director of a Company Will Have Breached Their Duty

question 58

Multiple Choice

A director of a company will have breached their duty to prevent the company engaging in 'insolvent trading' if the company:

• A)Trades with a company that is insolvent.
• B)Continues to trade despite the fact that it is reasonable to assume that the company has become insolvent.
• C)Trades with a company that is on the verge of insolvency.
• D)Continues to trade despite the fact that it is in serious financial difficulty.

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Definitions:

Ethical Choices

Decisions made based on moral principles, considering what is right and wrong.

Cultural Differences

Variations in beliefs, values, habits, and social practices among people from different backgrounds.

Honest Messages

Communications that are truthful, transparent, and free from deceit, fostering trust and integrity.

Nonverbal Communication

The process of conveying a message without the use of words, through gestures, facial expressions, body language, and other cues.