Which of the Following Is False Regarding the Liability of Directors

question 8

Multiple Choice

Which of the following is false regarding the liability of directors and officers for criminal behavior?

• A) Directors and officers can be held personally responsible for their own crimes.
• B) Directors and officers can be held personally responsible for the crimes of other employees within the organization when they have failed to adequately supervise the employee's behavior.
• C) An officer can be held criminally liable for conduct of an employee if the court determines that a responsible person would have known about and could have prevented the illegal activity.
• D) Directors and officers who use insider information to trade the corporation's stock for a profit can be held liable for breaching their fiduciary duty.
• E) According to the responsible person doctrine, a court may not find a corporate officer criminally liable for conduct of an employee unless the officer profited personally from the illegal activity.

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Definitions:

Parasympathetic Nervous System

is a division of the autonomic nervous system responsible for rest and digest functions, conserving and restoring energy.

Autonomic Nervous System

The part of the nervous system responsible for the control of bodily functions not consciously directed, such as breathing, the heartbeat, and digestive processes.

Involuntary Muscles

Muscles that operate automatically without conscious control, such as the heart and muscles in the digestive system.

Autonomic Nervous System

The part of the nervous system that controls involuntary bodily functions such as heartbeat, digestion, and breathing.