Most States, as Well as the Revised Act, Hold That

question 4

Multiple Choice

Most states, as well as the Revised Act, hold that the test for the duty of diligence requires a director or officer to discharge corporate duties:

• A) in good faith.
• B) with a high degree of care.
• C) without a conflict of interest.
• D) through a named attorney or legal firm.
• E) All of these.

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Definitions:

Interest Payments

The regular payments made to lenders as compensation for the money borrowed, typically expressed as a percentage of the principal sum.

Debt Ceiling

A limit on the total amount of money the federal government can legally borrow.

Defense Spending

Government expenditure on military and defense-related activities, including salaries, equipment, operations, and research and development.

Budget Deficit

A financial situation where a government's expenditures exceed its revenues over a specified period, leading to borrowing or debt accumulation.