Which of the Following Is False Regarding the Liability of Directors

question 88

Multiple Choice

Which of the following is false regarding the liability of directors and officers for criminal behavior in the U.S.?

• 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) According to the responsible person doctrine, 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) 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:

Nicotinic Acetylcholine Receptor

A type of receptor found in the nervous system that responds to the neurotransmitter acetylcholine, playing a key role in muscle contraction and many other physiological functions.

Upregulation

The process of increasing the quantity or activity of a molecular component, often referring to gene expression or protein levels in cell biology.

Downregulation

The process by which a cell decreases the quantity of a cellular component, such as RNA or protein, in response to an external variable.

Withdrawal

The process or experience of stopping or reducing the use of a psychoactive substance, often leading to uncomfortable symptoms.