All of the Following Are True of Buyer Due Diligence

question 37

Multiple Choice

All of the following are true of buyer due diligence except for

• A) Due diligence is the process of validating assumptions underlying valuation.
• B) Can be replaced by appropriate representations and warranties in the agreement of purchase and sale.
• C) Primary objectives are to identify and to confirm sources and destroyers of value
• D) Consists of operational, financial, and legal reviews.
• E) Endeavors to identify the "fatal flaw" that could destroy the deal

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Definitions:

Void

A contract or legal agreement that is null and has no legal force or effect.

Appointed Guardian

A person legally designated to manage the personal and/or financial affairs of another individual who is unable to do so.

Intoxicated Persons

Individuals whose normal capacity to act or make decisions is significantly impaired due to the consumption of alcohol or drugs.

Alcohol

A chemical compound that is commonly found in drinks such as beer, wine, and spirits, and is known for its psychoactive effects.