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

question 78

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:

Year

A period of time consisting of 365 or 366 days, divided into 12 months, used for calculating time according to the Gregorian calendar.

Texas

A state located in the southern region of the United States, known for its large size, diverse population, and significant cultural and economic contributions.

Official Reporter

A published volume of court decisions compiled as an authoritative source for legal precedents.

New Jersey

A state in the northeastern U.S., known for its significant role in American history, Atlantic Coast beaches, and as a center of commerce and industry.