A person is said to be in ________ act, when the business which he transacts, or the money or property which he handles, is not for his own benefit, but for another person:
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A. B. C. D.A
The correct answer to the question is A. Fiduciary Capacity.
A person is said to be in a fiduciary capacity when the business they are transacting or the money or property they are handling is not for their own benefit but for another person. In a fiduciary relationship, the person who holds the position of trust is legally obligated to act in the best interests of the beneficiary or the person whose assets they are managing.
The concept of fiduciary duty is based on trust, confidence, and reliance. When someone is acting in a fiduciary capacity, they are expected to exercise a high standard of care, loyalty, and diligence in managing the assets or affairs of another person or entity. This duty arises from the special relationship between the fiduciary and the beneficiary, where the fiduciary holds a position of trust and confidence.
Fiduciary relationships can exist in various contexts, such as between a trustee and a beneficiary, an attorney and a client, an executor and a deceased person's estate, or a corporate officer and the shareholders. In each of these relationships, the fiduciary is entrusted with the responsibility to act solely in the best interests of the beneficiary or the person they represent.
Embezzlement, which is option B, refers to the act of misappropriating or stealing funds or property entrusted to one's care, especially in a professional or employment capacity. It involves the fraudulent conversion of another person's assets for personal gain. While embezzlement can occur within a fiduciary relationship, it does not encompass the broader concept of acting in a fiduciary capacity.
Conversion, which is option C, refers to the unauthorized assumption, control, or exercise of ownership rights over someone else's property, depriving them of their rights. It involves a wrongful act that interferes with the rights of the owner, such as selling, destroying, or misusing the property. Conversion can occur in various contexts, but it does not specifically imply acting in a fiduciary capacity.
Therefore, the most appropriate answer to the question is A. Fiduciary Capacity, as it accurately describes a situation where a person is handling money or property not for their own benefit but for another person.