In What Way Are a Duty of Competence and a Fiduciary

question 10

Multiple Choice

In what way are a duty of competence and a fiduciary duty similar?

• A) Both are obligations owed to a corporation's creditors.
• B) Both are strict liability obligations owed to external stakeholders.
• C) Directors are relieved from them by delegating authority to officers.
• D) Neither is an obligation owed by a director that can be delegated.

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Definitions:

Monopolistic Competition

A market structure in which many companies sell products or services that are similar but not identical, allowing for some degree of market power.

Profit-maximizing

The approach by which an organization figures out the best pricing and output quantity for the highest profit.

Product Variety

The assortment of different products or services offered by a company or available in a market.

Monopolistic Competition

A market structure where many firms sell products that are similar but not identical, allowing for competition but with some level of market power.