Which of the following is legal duty between two parties where one party must act in the interest of the other party?
A)agency theory
B)angel investor
C)fiduciary
D)investment banker

Question

Quizplus · Accepted Answer

A fiduciary duty is a legal duty in which one party, the fiduciary, is responsible for acting in the best interest of the other party, the beneficiary. This duty is commonly found in relationships between professionals and their clients, such as financial advisors, lawyers, and trustees. Choice A, agency theory, refers to the relationship between a principal and an agent who acts on their behalf. Choice B, angel investor, refers to an individual who provides funding to a startup or early-stage company in exchange for equity. Choice D, investment banker, refers to a professional who provides advice and assistance to companies and governments regarding various financial transactions. Although investment bankers have a duty to act in the best interest of their clients, this duty may not necessarily rise to the level of a fiduciary duty.

Which of the Following Is Legal Duty Between Two Parties