Undue Influence Involves a State of Affairs Whereby a Person

question 17

Multiple Choice

Undue influence involves a state of affairs whereby a person is so influenced by another that

• A) the person is considered to be in a special relationship.
• B) the person is liable to seek out other advice.
• C) the person's judgment allows them to act illegally.
• D) the person's judgment is not his or her own.
• E) the person does not act in good faith.

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Definitions:

Hedge Funds

Hedge funds are investment funds that employ various strategies to earn active returns for their investors, often engaging in leveraged, long, short, and derivative positions.

Private Equity Funds

Investment funds that gather capital from wealthy individuals or institutions to invest in buying and reorganizing private companies.

Separation Theorem

States that a firm’s investment decisions should be separate from the investment preferences of its investors.

Stock Ownership

Holding a share or shares of stock in a company, which represents a claim on part of the company's assets and earnings.