Answer: shareholders.

## Explanation In corporate governance, the primary fiduciary duty of a corporation's directors is to act in the best interests of the **shareholders** (owners of the corporation). This is a fundamental principle of corporate law and governance. ### Key Points: 1. **Fiduciary Duty**: Directors owe fiduciary duties to the corporation and its shareholders, which include: - Duty of care (making informed decisions) - Duty of loyalty (putting shareholders' interests first) 2. **Shareholders as Owners**: Shareholders are the residual claimants and owners of the corporation. Directors are elected by shareholders to represent their interests. 3. **Other Stakeholders**: While directors may consider the interests of other stakeholders (creditors, employees, customers, community), their primary legal responsibility is to shareholders. 4. **Corporate Governance Framework**: This principle is embedded in corporate governance codes and corporate law worldwide. ### Why not the other options? - **A. Creditors**: While directors must consider creditors' interests, especially when the company is insolvent or near insolvency, creditors have contractual relationships with the company, not fiduciary duties from directors. - **B. Managers**: Directors oversee management and hold them accountable to shareholders' interests, not the other way around. Therefore, the correct answer is **C. shareholders.**

Author: LeetQuiz .