When done correctly, the due diligence process will ________.
A)reveal both the positive and negative aspects of an existing business
B)be time consuming and expensive
C)most often result in the purchase of the business
D)rarely prove to be beneficial

Question

Quizplus · Accepted Answer

The due diligence process is designed to uncover all relevant information about a business to help the investor or buyer make an informed decision. This includes both the positives and negatives of the business, such as its financials, legal history, management structure, and potential risks. It can be time-consuming and expensive, but is necessary to ensure a successful transaction. The ultimate outcome of the due diligence process is not predetermined, as it depends on the results of the investigation and the parties involved.

When Done Correctly, the Due Diligence Process Will ________