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

Question

Quizplus · Accepted Answer

Buyer due diligence cannot be completely replaced by appropriate representations and warranties in the agreement of purchase and sale. While representations and warranties can provide some level of assurance, due diligence is necessary to verify information and identify potential risks or issues that may not be disclosed or covered by the agreement.

All of the Following Are True of Buyer Due Diligence