Which of the following is the most appropriate term to use when describing management's duty to its shareholders?
A)official duty
B)legal duty
C)fiduciary duty
D)statutory duty

Question

Quizplus · Accepted Answer

Fiduciary duty refers to the legal obligation of management to act in the best interest of shareholders and to exercise their powers in a responsible and ethical manner. It is a fundamental aspect of corporate governance and applies to all directors and officers of a company. While management may have official, legal, or statutory duties, the specific duty to act as a fiduciary is paramount when it comes to managing a company's affairs on behalf of its shareholders.

Which of the Following Is the Most Appropriate Term to Use