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 diligencec) duty of control and audit. d) duty of confidence and leadership. e) duty of analysis and insight.

Question

Business

Jairo Chen

20 January, 22:55

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 diligencec) duty of control and audit. d) duty of confidence and leadership. e) duty of analysis and insight.

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Theresa Acevedo · Answer 1

a) duty of oversight and loyalty.

Explanation:

Whenever an individual places trust on another individual to perform any task, the other individual shall perform the task properly and then shall investigate it properly, with all the good faith in mind.

As the other person has too much trust, he expects you to be loyal and carefully, access the roles defined and practice accordingly.

Duty of oversight and loyalty ensure the good faith behavior from the directors towards the organization in achieving its goals.

As it demands the directors to act carefully, as a leader and along with that all acts are to performed in good faith.