Due diligence can be defined as ________.
A) The exercise of reasonable care in the evaluation of a business opportunity
B) The exercise of sensible care in the evaluation of a business opportunity
C) The exercise of rational care in the evaluation of a business opportunity
D) The exercise of judicious care in the evaluation of a business opportunity
E) The exercise of equitable care in the evaluation of a business opportunity

Question

Quizplus · Accepted Answer

Due diligence refers to the exercise of reasonable care or caution in the evaluation of a business opportunity, investment or product before making a decision. It involves conducting a thorough investigation or analysis of the facts, risks, and benefits associated with the opportunity or investment to ensure that all relevant information is considered before making a decision. Therefore, option A, which defines due diligence as the exercise of reasonable care, is the most appropriate choice.

Due Diligence Can Be Defined as ________