In What Way Are a Duty of Competence and a Fiduciary

question 10

Multiple Choice

In what way are a duty of competence and a fiduciary duty similar?

• A) Both are obligations owed to a corporation's creditors.
• B) Both are strict liability obligations owed to external stakeholders.
• C) Directors are relieved from them by delegating authority to officers.
• D) Neither is an obligation owed by a director that can be delegated.

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Definitions:

Psychological Disorders

are mental health disorders characterized by disturbances in thoughts, feelings, and behaviors, leading to significant distress or impairment in daily functioning.

Schizophrenia

A chronic and severe mental disorder that affects how a person thinks, feels, and behaves, often leading to hallucinations, delusions, and disordered thinking.

Progestin

A hormone that is used to maintain pregnancy and can also cause masculinization of the fetus.

Masculinization

The process by which male physical, behavioral, and physiological traits are developed, often influenced by hormones like testosterone.