Agents Have a Fiduciary Duty to Their Principals

question 24

Multiple Choice

Agents have a fiduciary duty to their principals.Which of the following is FALSE with respect to the fiduciary duty?

• A)The fiduciary duty of an agent is a duty to act in good faith and in the best interests of the principal.
• B)The fiduciary duty of an agent requires the agent to avoid conflicts between the interests of the principal and their personal interests.
• C)The fiduciary duty of an agent requires the agent to disclose to the principal any information that may be relevant to the principal's interests.
• D)The fiduciary duty of an agent may be breached even in circumstances where the principal does not experience any loss as a result of the breach.
• E)The breach of a fiduciary duty requires the agent to have committed actual theft from the principal.

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Definitions:

Illogical Thoughts

Thinking patterns that are irrational or lack sound reasoning.

Cognitive Therapy Technique

A form of psychotherapy that aims to change negative patterns of thinking or behavior to alter a person's mood and coping strategies.

Scaling

The process of assigning a measurement or value to objects, properties, or conditions in a way that allows for comparison or ranking.

Cognitive Restructuring

Cognitive restructuring is a therapeutic process aimed at identifying and changing negative or irrational thoughts and beliefs.