How can firms protect themselves against misrepresentation?

Question

Quizplus · Accepted Answer

Firms can protect themselves against misrepresentation by partnering only with trustworthy individuals and firms. This can be ensured through thorough due diligence and analysing the credibility and track record of the potential partner before forming any kind of alliance. This helps in mitigating the risk of fraudulent activities or misrepresentation. The other options, such as partnering only with start-ups or creating an equity alliance, do not necessarily provide protection against misrepresentation. Desisting from forming any kind of alliance altogether may not be a viable option for firms seeking to expand and grow their business.

How Can Firms Protect Themselves Against Misrepresentation