The Obligation That Requires Certain People Within a Corporation to Act

question 42

Multiple Choice

The obligation that requires certain people within a corporation to act honestly and in good faith when discharging other responsibilities

• A)arises under the common law,and not under statute.
• B)imposes liability only if a breach causes the corporation to suffer a loss.
• C)is known as the duty of care.
• D)is broken when a person with this obligation enters into a transaction with the corporation unless certain requirements are met.
• E)was recently abolished because it often prevented the sort of calculated risks that can generate large profits.

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Definitions:

Information Gathering

The process of collecting data, facts, or details from various sources to enhance knowledge or inform decision-making.

Business Report

A formal document that conveys information or data, analyzes issues, and makes recommendations for business purposes.

Accurate Notes

Precise recordings of information, discussions, or observations, crucial for referencing and understanding contexts.

Business Reports

Structured documents that convey information, analysis, and recommendations to support business decision-making.