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

question 103

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) fiduciary duty.
• C) duty of diligence.
• D) duty of obedience.

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Definitions:

Diversification

A strategy of investing in a variety of assets to reduce overall risk.

Financial Analysts

Professionals who evaluate investments, financial data, and economic trends to help organizations make investment decisions.

Joint Probability Distribution

A statistical measure that calculates the likelihood of two events happening at the same time.

Mobile Phone Store

A retail shop that specializes in selling mobile phones and related accessories.