In Which of the Following Relationships Is a Fiduciary Duty

question 82

Multiple Choice

In which of the following relationships is a fiduciary duty owed?

• A)the officers of a corporation to the shareholders
• B)the director of a corporation to the corporation
• C)the director of a corporation to the shareholders
• D)a principal to his agent
• E)an employer to his or her employees

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Definitions:

Agent

Someone who is authorized to act on behalf of another person (the principal), especially in business or legal matters.

Apparent Authority

A situation where a person appears to have the authority to act on behalf of another person or company, leading others to rely on that apparent authority.

Durable Power

Refers to a legal document granting someone else the authority to act on your behalf in specific legal and financial matters, even after you become incapacitated.

Uniform Durable Power

A legal document that grants one person (the agent) the authority to act on behalf of another (the principal) in a wide range of matters and remains in effect even if the principal becomes incapacitated.