Question

Read the following sentences and choose the option that best arranges them in a logical order: 1. In law a fiduciary individual is someone who is entrusted with the power to act on behalf of and for the benefit of another.
2. Following the weight of corporate law and legal precedent, the director primacy model positions directors as autonomous fiduciaries, not agents.
3. The term fiduciary derives from the Latin fiducia, or trust, and the fiduciary is expected to act in good faith and honesty for the beneficiary’s interests.
4. A person who accepts the role of fiduciary in law must single-mindedly pursue the interests of his or her beneficiary, in this case the corporation, even when the latter cannot monitor or control the fiduciary’s behaviour.

• A. 3, 1, 4, 2
• B. 3, 4, 1, 2
• C. 2, 1, 3, 4
• D. 4, 2, 3, 1
• E. 2, 1, 4, 3

Hint:

In paragraph arrangement questions, always begin with definitions or general introductions, then move to explanations, obligations, and finally applications or specific examples.

Answer 1

The Correct Option is A

Step 1: Identify the introductory idea.
Sentence (3) defines the word “fiduciary” and explains its origin (from Latin “fiducia”). A definition naturally serves as the best opening.

Step 2: Build logically from the definition.
After defining the term, the next step is to describe what a fiduciary individual is in law. That is exactly what sentence (1) does: it provides the legal role of a fiduciary.

Step 3: Elaborate with obligations.
Sentence (4) extends the explanation by clarifying the responsibilities of a fiduciary — that they must single-mindedly act in the interest of the beneficiary, even if not monitored. This flows smoothly from sentence (1).

Step 4: Conclude with application.
Sentence (2) connects the concept to corporate law, showing how fiduciaries are treated under the director primacy model. It logically comes last as the application of the concept.

Final Sequence: \[ 3 \;\rightarrow\; 1 \;\rightarrow\; 4 \;\rightarrow\; 2 \] \[ \boxed{\text{Answer: (A)}} \]