The Exercise of Which of the Following Is Required by a Duty

question 15

Multiple Choice

The exercise of which of the following is required by a duty owed by directors or officers that compares them to a reasonably prudent person in comparable circumstances?

• A) honesty,skill,and care
• B) diligence,honesty,and fairness
• C) diligence,skill,and care
• D) prudence,fairness,and honesty

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Definitions:

Subsidiary

A company that is controlled by another company, known as the parent company, through majority ownership.

Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits.

Investment in Grub

An allocation of resources into a project or company named Grub, expecting future returns.

Equity Method

An accounting technique used by firms to assess the profits earned through their investments in other companies by recognizing their share of the earnings.