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What does the prudent man rule require?

What does the prudent man rule require?

PrepAway - Latest Free Exam Questions & Answers

A.
Senior officials to guarantee that all precautions have been taken and that no breaches of security
can occur

B.
Senior officials to post performance bonds for their actions

C.
Senior officials to perform their duties with the care that ordinary, prudent people would exercise
under similar circumstances

D.
Senior officials to follow specified government standards

Explanation:
*Answer “Senior officials to post performance bonds for their actions” is a distracter and is not part
of the prudent man rule. * Answer “Senior officials to guarantee that all precautions have been
taken and that no breaches of security can occur” is incorrect because it is not possible to guarantee
that breaches of security can never occur. * Answer “Senior officials to follow specified government
standards” is incorrect because the prudent man rule does not refer to a specific government
standard but relates to what other prudent persons would do.


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