Legal Standard

Prudent-Man Rule
The Prudent-Man Rule is a legal standard adopted by some U.S. states to guide fiduciaries in making investment decisions, emphasizing discretion and intelligence in seeking reasonable income, preserving capital, and avoiding speculative investments.
Reasonable Care
A legal standard used to determine the degree of care a reasonably prudent person would exercise in specific circumstances. Often crucial in tort cases, it helps to determine liability in scenarios involving potential negligence.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.