Is Allison Correct That She Owes No Duties to Shareholders

question 74

Multiple Choice

Is Allison correct that she owes no duties to shareholders?

• A)No,she is incorrect because she owes a duty of care to shareholders although she owes no other duties.
• B)No,she is incorrect because she owes a duty of loyalty to shareholders although she owes no other duties.
• C)Yes,she is correct because it is the directors who owe duties to shareholders.
• D)She is partially correct.She owes both a duty of care and a duty of loyalty to minority shareholders,but no duties to majority shareholders because the law assumes that they have the power to protect their own interests.
• E)No,she is incorrect because she owes both a duty of care and a duty of loyalty to shareholders.

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Definitions:

Interpersonal Relationships

The connections and interactions between two or more people, ranging from casual acquaintances to deep and long-lasting bonds.

Social Brain Theory

The social brain theory proposes that the size and complexity of an animal's brain, especially in primates, evolved primarily to handle complex social interactions and relationships.

Interpersonal Relations

The social connection or interaction between two or more individuals.

Deliberate System

A cognitive process that is slow, analytical, and effortful, often used when making complex decisions that require attention to detail.