Which of the Following Is False Regarding the Liability of Directors

question 88

Multiple Choice

Which of the following is false regarding the liability of directors and officers for criminal behavior in the U.S.?

• A) Directors and officers can be held personally responsible for their own crimes.
• B) Directors and officers can be held personally responsible for the crimes of other employees within the organization when they have failed to adequately supervise the employee's behavior.
• C) According to the responsible person doctrine, an officer can be held criminally liable for conduct of an employee if the court determines that a responsible person would have known about and could have prevented the illegal activity.
• D) Directors and officers who use insider information to trade the corporation's stock for a profit can be held liable for breaching their fiduciary duty.
• E) A court may not find a corporate officer criminally liable for conduct of an employee unless the officer profited personally from the illegal activity.

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Definitions:

Non-metallic Elements

Elements that do not exhibit metallic characteristics, broadly classified into metalloids, nonmetals, and noble gases, such as carbon, sulfur, and neon.

Conduct Electricity

The ability of a substance to allow the flow of electrical current or charges through it.

Conduct Heat

To conduct heat means to transfer thermal energy through a substance, due to a temperature difference, without the substance itself moving significantly.

Atoms

Fundamental particles that make up elements, characterized by a central nucleus encircled by electrons.