CFE – Law — Question 45

The _______________ provides that people in fiduciary relationships must act with the skill and attention normally exercised by ordinarily prudent persons in similar positions.

Answer options

• A. Duty of responsibility
• B. Duty of loyalty
• C. Duty of care
• D. Duty employee trust

Correct answer: C

Explanation

The correct answer is C, Duty of care, which emphasizes the necessity for fiduciaries to act with a level of prudence and skill consistent with the expectations of their roles. Options A and B refer to different responsibilities that fiduciaries hold, while D is not a recognized legal term in this context.