In Which of the Following Cases Would a Fiduciary Duty

question 72

Multiple Choice

In which of the following cases would a fiduciary duty be breached?

• A)A stockbroker advises a client to buy shares in a company in which he is a substantial shareholder without disclosing the fact of his preexisting shareholding to the client
• B)A director of a company buys property from the company after misrepresenting its true value to the other members of the board of directors
• C)A real estate agent who has been authorized to search for property buys a property and sells it back to his client for three times the value
• D)A stockbroker advising an elderly woman on investing money after her husband died and she has no investing experience and he has her put it into a new startup he owns
• E)All of the above

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Definitions:

Cost

The value of resources spent or forgone to achieve a particular objective or acquire an item or service.

United States

A federal republic located primarily in North America, consisting of 50 states, a federal district, and various territories.

Achieved Ethnic Identity

The stage in identity development in which an individual has explored and fully understands their ethnic background, leading to a sense of belonging and acceptance.

Guatemalan Culture

Guatemalan culture encompasses traditions, languages, practices, and beliefs of the people in Guatemala, influenced by its indigenous and colonial history.