Question 24

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.

The passage follows a clear academic progression.

It begins with Sentence 3, which establishes the etymological root of the term "fiduciary" from the Latin fiducia, meaning trust, and sets the foundational expectation of good faith toward the beneficiary. Building on this linguistic foundation, 

Sentence 1 provides the formal legal definition that a fiduciary is one entrusted with the power to act on behalf of another, where the word "entrusted" directly echoes the trust concept introduced in Sentence 3.

Sentence 4 then deepens this definition into a binding obligation, stating that a fiduciary must single-mindedly pursue the beneficiary's interests even in the absence of monitoring or control, thereby establishing the role's autonomous nature. 

Finally, Sentence 2 applies this fully developed concept to the specific domain of corporate law, where directors are positioned as autonomous fiduciaries rather than agents, the word "autonomous" serving as a direct conceptual bridge from Sentence 4's emphasis on acting without oversight. 

The progression thus moves logically from etymology → definition → obligation → application, which is the standard structure of formal legal exposition.

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