The Act of Investigating Prior to Signing Contracts Is Called

question 62

Multiple Choice

The act of investigating prior to signing contracts is called _____.

• A) due diligence 
• B) strategic fit 
• C) relational capability 
• D) hubristic motive

---

Definitions:

Market Risk

The risk of losses in investments due to market-wide phenomena, affecting all investments across the board.

CAPM Approach

A financial model used to determine the expected return on an investment, considering its risk relative to the market using the Capital Asset Pricing Model.

Shareholder Wealth

The value that shareholders gain from their investment in a company, measured by stock prices and dividends.

Project Risk

The uncertainty associated with achieving project objectives within defined constraints such as scope, time, and budget.