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What does the prudent man rule require?
A. Senior officials to post performance bonds for their actions
B. Senior officials to follow specified government standards
C. Senior officials to guarantee that all precautions have been taken and that no breaches of security can occur
D. Senior officials to perform their duties with the care that ordinary, prudent people would exercise under similar circumstances
Answer: D
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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