Final answer:
Corporate fiduciaries are held to the same level of fiduciary liability as individual fiduciaries, with responsibilities including acting in the best interests of their shareholders and facing similar legal standards and consequences for failing to fulfill their duties. The correct option is a.
Step-by-step explanation:
With regard to fiduciary liability, corporate fiduciaries are held to the same level of liability as individual fiduciaries. This is because, at their core, the fiduciary duties owed by corporate fiduciaries to their shareholders are similar to those owed by individual fiduciaries to their principals. Thus, the standard of care does not necessarily increase simply because a fiduciary is corporate, despite their often greater resources and expertise. Corporations are tasked with the responsibility to act in the best interests of their shareholders and can face legal consequences if they fail to act as such. Situations of shareholder liability are clear in indicating that while shareholders may be protected from personal financial loss beyond their investment, the corporate entity itself must still faithfully execute its fiduciary duties or face potential lawsuits.
Corporate fiduciaries are held to a higher level of liability than individual fiduciaries due to their touted expertise and generally deeper pockets. As mentioned, corporations have a fiduciary obligation to their shareholders to maximize profit, and failure to do so is technically illegal and can result in damaging lawsuits.
On the other hand, individual fiduciaries may have lower liability since they may not have the same level of expertise or financial resources as corporations.
Therefore, the correct answer is b. a higher level of liability than individual fiduciaries due to their touted expertise and generally deeper pockets.