Buyer Incorporated seeks to acquire Target Corporation. In order to do this they will engage in a process of researching the financial status of the Target Corporation to evaluate any potential liabilities in a process called due diligence.

Question

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Due diligence is the investigation or exercise of care that a reasonable business or person is normally expected to take before entering into an agreement or contract with another party or an act with a certain standard of care. It involves researching and analyzing the financial, legal, and operational aspects of the target company to uncover any potential liabilities or risks.

Buyer Incorporated Seeks to Acquire Target Corporation