The higher the position in an organization held by a director or managerial officer, the higher his or her fiduciary duty.

Question

Quizplus · Accepted Answer

This statement is generally true. Fiduciary duty refers to the legal obligation of a person in a position of trust to act in the best interest of another party. Directors and managerial officers in high positions have a greater responsibility to act in the best interest of the organization and its stakeholders. This duty includes making decisions that are in line with the company's objectives, avoiding conflicts of interest, and maintaining transparency and accountability in their actions. Failure to fulfill this duty can result in legal consequences.

The Higher the Position in an Organization Held by a Director