Confirmations Must Be Sent Out

question 81

Multiple Choice

Confirmations must be sent out:

• A) Immediately after the deal is done.
• B) As quickly as possible after the deal is done.
• C) By electronic media only, e.g. fax, telex.
• D) Not later than the value date of the first leg of

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Definitions:

Holdback Money

Funds retained by one party in a transaction as a safeguard to ensure some form of compliance or completion by the other party.

Goodwill

An intangible asset that arises when a business is purchased for more than the fair value of its standalone assets and liabilities, often attributed to the company's brand, customer base, and reputation.

Escrow Settlement

A financial arrangement where a third party holds and regulates payment of the funds required for two parties involved in a given transaction, ensuring fair and secure dealings.

Due Diligence

The process of thoroughly investigating the accuracy of information before signing a franchise (or any other) agreement.