Use This Fact Situation to Answer the Related Questions That

Multiple Choice

Use this fact situation to answer the related questions that follow. A,B,and C are directors of Multi Corp Ltd. ,a private provincial corporation that is presently negotiating the purchase of another company,Gladstone Inc. ,whose business should compliment the business of Multi Corp Ltd.Based on a report arising from a review of the books,records,and financial statement of Gladstone Inc.by Multi Corp's accountants,A,B,and C have every reason to believe that the acquisition of Gladstone Inc.will benefit Multi Corp Ltd.and increase its yearly profits substantially.As a result,A,B,and C vote to go ahead with the purchase by Multi Corp Ltd.of Gladstone Inc.However,after the purchase,it is found that the books and records of Gladstone Inc.had been fraudulently manipulated and that it was really in poor financial health.When this information is discovered,the value of Multi Corp Ltd.'s shares falls dramatically and Multi Corp Ltd.is forced into bankruptcy.Needless to say,the shareholders of Multi Corp Ltd.blame A,B,and C for their losses and commence an action against them for damages equal to the lost value of their shares.
In this case,the shareholders will likely argue that A,B,and C

A) did not act in the best interests of Multi Corp Ltd.
B) breached their fiduciary duty to Multi Corp Ltd.
C) did not act in the best interests of the shareholders of Multi Corp.Ltd.
D) breached their duty of care,diligence,and skill to Multi Corp Ltd.
E) breached their duty of care,diligence and skill to the shareholders of Multi Corp Ltd.