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.