Both Directors and Officers of Corporations Are Fiduciaries for the Shareholders

question 38

Multiple Choice

Both directors and officers of corporations are fiduciaries for the shareholders. Fiduciaries are persons placed in positions of trust that act on behalf of the best interests of the organization. This is defined as

• A)duty of oversight and loyalty.
• B)duty of care or a duty of diligence
• C)duty of control and audit.
• D)duty of confidence and leadership.
• E)duty of analysis and insight.

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Definitions:

Synapse

A synapse is the junction between two neurons or between a neuron and a muscle, where electrical or chemical signals are transmitted.

Neural Transmission

The process by which nerve cells (neurons) communicate with each other through electrical and chemical signals.

Action Potential

A brief electrical charge that travels down a neuron, triggered when the neuron fires and essential for nerve impulse transmission.

Excitation Reaction

A physiological response that increases the activity or efficiency of a part of the body or brain.