The Officers and the Directors Are Fiduciaries of the Corporation

question 91

True/False

The officers and the directors are fiduciaries of the corporation, but the business judgment rule may preclude liability on officers and directors for honest mistakes of judgment.

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Definitions:

Ego

In psychoanalytic theory, the part of the psyche that mediates between the primal desires of the id and the moral demands of the superego.

Problem-Solving Skills

The ability to identify, define, and resolve problems through the application of appropriate strategies and critical thinking.

Cognitive

Relating to mental processes such as perception, memory, thinking, and problem-solving.

Psychodynamic Perspective

A theory in psychology that emphasizes unconscious psychological processes and contends that childhood experiences are crucial in shaping adult personality.