ACCA Accountant In Business (F1) Certification Practice Exam 2025 – All-in-One Guide for Exam Success

Question: 1 / 1525

Is it possible for a manager to be held responsible for not fulfilling fiduciary duty even if they did not gain material benefit from their actions?

True

A manager can indeed be held responsible for not fulfilling fiduciary duties regardless of whether they gained any material benefit from their actions. Fiduciary duties require managers to act in the best interest of their organization and its stakeholders, prioritizing duty over personal gain. This principle implies that the obligation to act responsibly and ethically exists independently of any personal benefit received.

For example, if a manager makes decisions that harm the organization due to negligence or failure to act on important information, they can be held accountable because they did not meet the standards of care and loyalty expected of them as fiduciaries. The focus in these scenarios is on the responsibility to uphold the organization's interests rather than personal outcomes. Therefore, a breach of fiduciary duty can have severe consequences, even if no direct financial gain was realized by the manager involved.

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False

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