Prudent Man Rule: The prudent man rule is the basic standard a fiduciary, who is responsible for other people’s money, must meet. It mandates acting as a thoughtful and careful person would, given a particular set of circumstances. A trustee, for example, observes the prudent man rule by preserving a trust’s assets for its beneficiaries. The prudent man rule has sometimes been described as a defensive approach to money management, putting greater emphasis on preservation than on growth. The newer prudent investor rule differs by putting greater emphasis on achieving a reasonable rate of return and by delegating decision-making to investment professionals.

 

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Prudent Man Rule: The prudent man rule is the basic standard a fiduciary, who is responsible for other people’s money, must meet. It mandates acting as a thoughtful and careful person would, given a particula . . . View Full Definition

Parol Evidence Rule: A rule of evidence providing that a written agreement is the final expression of the agreement of the parties, not to be modified by oral or written negotiations.

Participative Management: A management style, developed by Motorola, that involves employees in the decision-making process.

Pac-Man Strategy: Takeover defense strategy in which the prospective acquiree retaliates against the acquirer's tender offer by launching its own tender offer for the other firm.