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:

Just-In-Time (JIT) System

Broad management philosophy that reaches beyond the narrow activity of inventory control to influence the entire system of production and operations management.

Perpetual Inventory System

System that continuously monitors the amount and location of a company’s stocks.

Vendor-Managed Inventory

Process in which the producer and the retailer agree that the producer (or the wholesaler) will determine how much of a product a buyer needs and will automatically ship new supplies when needed.

Community Living Conditions

The environmental, social, and economic factors that affect the quality of life within a community.