Earnouts Are Generally Very Poor Ways to Create Trust and Often

question 43

True/False

Earnouts are generally very poor ways to create trust and often represent major impediments to the integration process.

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Definitions:

Breach of Warranty

A violation of a guarantee or promise made about the quality or durability of a product or service.

Expert

An individual with specialized knowledge, skills, or expertise in a particular area who is regarded as a reliable source of information or advice.

Opinion

A statement that expresses a belief, view, or judgment, rather than an objective fact.

CISG

The United Nations Convention on Contracts for the International Sale of Goods (CISG) is an international treaty that provides a uniform framework for the international sale of goods.