Glossary

agency theory. This theoretical construct believes that people will act in their own self-interest.

AGM (annual general meeting or annual shareholders meeting). This is the annual meeting of all the owners (stockholders or shareholders) of the firm.

altruism. Unselfish concern for the welfare of others at the expense of oneself. Families can make business decisions that hurt the business, such as avoiding layoffs in a downturn or keeping a long-term yet unproductive employee.

audit committee. This is a subcommittee made up of members of the BOD. The audit committee audits (or reviews) the financial reports.

board of advisors. This board is an informal group that offers advice and recommendations to the business. The family business is ...

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