The legal agreement between shareholders and management that determines the fiduciary duty of management in operating the organization is known as their:
A)standards of excellence
B)articles of incorporation
C)codes of conduct
D)None of the above

Question

Quizplus · Accepted Answer

The legal agreement between shareholders and management that determines the fiduciary duty of management in operating the organization is known as the articles of incorporation. The articles of incorporation set forth the purpose and basic structure of the corporation, including the rights and responsibilities of shareholders and management. It is a legally binding document that must be filed with the state in which the corporation is incorporated.

The Legal Agreement Between Shareholders and Management That Determines the Fiduciary