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NEW QUESTION: 1



A. Option D
B. Option C
C. Option A
D. Option B
E. Option E
F. Option F
Answer: B,C

NEW QUESTION: 2
Amartya is currently managing the investment fund for a charitable institution and has his fiduciary duties bound by the UMIFA (Uniform Management of Institutional Funds) rules. His colleague, Bhagwati, is a trustee of a personal trust fund set up by the late R D Tata, a famous industrialist. Which of the following is/are true about this situation?
I. Amartya's behavior as a trustee is governed by the "Prudent Man Rule." II. Bhagwati is held to a standard of ordinary business care.
III. In general, Amartya is held to a lower standard of professional conduct than Bhagwati.
A. III only
B. I, II and III
C. I only
D. I and II only
Answer: A
Explanation:
Explanation/Reference:
Explanation:
In the US, the investment actions of personal trust fiduciaries is governed by the "Prudent Man Rule," which requires an exercise of care and judgment which people of "prudence, character and intelligence" would use in the management of their personal investment affairs. On the other hand, trustees of charitable funds, when governed by UMIFA, are held to the standard of ordinary business care. This standard is comparable to that which applies to someone of the rank of a director in a business corporation and is not as strict as the Prudent Man Rule. Therefore, Amartya, as a UMIFA fiduciary, is held to a lower standard than Bhagwati. Standard IV (B.1) - Fiduciary Duties - and the Topical Study "Fiduciary Duty."

NEW QUESTION: 3

A. Option D
B. Option A
C. Option B
D. Option C
Answer: B