What Is the Best Definition of a Fiduciary Relationship

question 13

Multiple Choice

What is the best definition of a fiduciary relationship?

• A)The principal pays the agent to act on his or her behalf.
• B)The principal grants an agent permission to act,either by words or conduct.
• C)A principal is liable for certain torts committed by an agent.
• D)The trustee must act in the best interests of the beneficiary.

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Definitions:

Debit

Amount entered on the left side of an account.

Expense Account

An accounting entry that represents consumption of assets, decrease in owners' equity, or incurrence of liabilities during a period as a result of operational activities.

Asset Account

A classification within financial accounting that reports the value of a company's long-term resources, such as property, equipment, and intellectual property.

Computer

An electronic device that executes specific tasks or calculations according to a set of instructions or software.