The level of care expected of a reasonable person under similar circumstances in meeting one's fiduciary duty is called which?

• A. Duty of loyalty
• B. Duty of care
• C. Transparency
• D. Fairness

Answer: (B)

The level of care expected is the duty of care. In fiduciary relationships, this means acting with the same diligence a reasonable person would use in similar circumstances—gathering relevant information, evaluating options, considering risks, and making well-informed decisions. This standard ensures decisions are thoughtful and supported by appropriate inquiry, rather than impulsive or uninformed actions. It sits alongside the duty of loyalty (focusing on putting beneficiaries’ interests first and avoiding conflicts), while transparency and fairness describe broader governance traits but do not specify the diligence standard implied by “reasonable person under similar circumstances.” The duty of care is the best fit because it directly captures the expected conduct in meeting one’s fiduciary responsibilities.