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:

Pyramidal Neuron

A type of excitatory neuron found in certain areas of the brain, such as the cerebral cortex, with a distinctive pyramid-shaped cell body.

Sensory Neuron

A type of neuron that converts external stimuli from the organism's environment into internal electrical impulses.

Efferent Neuron

Neurons that carry neural impulses away from the central nervous system towards effectors such as muscles or glands.

Interneuron

A type of neuron that connects sensory and motor neurons within the central nervous system, facilitating complex reflexes.