An Agent Owes a Fiduciary Duty to His Principal, a Director

question 121

Multiple Choice

An agent owes a fiduciary duty to his principal, a director owes a fiduciary duty to the corporation, and partners owe a fiduciary duty to the firm and to the other parties. Which of the following is not true with regard to one's fiduciary duty?

• A) An agent would be in breach of his fiduciary duty if he let his interest conflict with his duty.
• B) A fiduciary is in a position of trust and owes true loyalty to the person depending on him.
• C) A shareholder owning a business that secretly competes with the corporation is in breach of fiduciary duty.
• D) A partner secretly competing with his own firm would be in breach of his fiduciary duty.
• E) An agent failing to disclose to his principal all information relating to the principal's business transaction would be a breach of his fiduciary duty.

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Definitions:

Game Theory

A branch of mathematics and economics that studies strategic interactions where participants' outcomes depend on the choices of all parties involved.

Alternative Outcomes

Different possible results or consequences that may arise from a given action or decision.

Alternative Partners

Different partners or counterparts considered in a business, negotiation, or relationship scenario.

Game Theory Matrix

A table used in game theory that shows the payoffs for each player for every possible combination of actions.