Which of the following best describes the process of examining the financial underpinnings of a corporation as one of the first steps in a large scale IT purchase, with the goal of understanding risks associated with the relationship?
A) Third-party arbitration
B) Request for proposal review
C) Risk profiling
D) Due diligence

Question

Quizplus · Accepted Answer

Due diligence refers to the process of examining the financial, legal, and other aspects of a company or organization as part of an acquisition or major investment. In the context of IT purchases, due diligence may involve assessing the risks associated with entering into a new vendor-client relationship, including financial risks such as the vendor's financial stability and solvency.

Which of the Following Best Describes the Process of Examining