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Your Friend Susan Is Considering Purchasing an Existing Business

question 14

Essay

Your friend Susan is considering purchasing an existing business. How would you explain to her what due diligence is, why it is important, and the critical areas of it?


Definitions:

Beneficiary

An person or entity designated to receive benefits or assets under a legal arrangement or instrument, such as a will, trust, or insurance policy.

Image Replacement Document

A document that substitutes for the original through the use of photographs or scanned copies, often used when the original is lost or inaccessible.

Substitute Check

A paper reproduction of both sides of an original check that can be processed electronically.

Obligated To Pay

Having a legal or moral responsibility to make a payment or settle a debt.

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