An Officer or Director's Responsibility to Exercise Ordinary Care and Prudence

question 27

Multiple Choice

An officer or director's responsibility to exercise ordinary care and prudence in discharging duties is the:

• A) duty of good faith.
• B) duty of diligence.
• C) fiduciary duty.
• D) duty of obedience.

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Definitions:

States

States are distinct political entities with a defined territory, population, and government, which are part of a larger sovereign country or function independently.

Presume

To accept something as true without proof or before evidence is provided.

Dormant Commerce Clause

A restriction on states’ authority that is implied in the commerce clause of the U.S. Constitution: The power given to Congress to enact legislation that affects interstate commerce in effect prohibits a state from passing legislation that improperly burdens interstate commerce.

Interstate Commerce

Interstate Commerce refers to the buying, selling, or moving of goods, services, or money across state borders, regulated by the federal government.