Asked by Anthony Amaya on Jun 25, 2024

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A qualitative assessment of the business,its customers and suppliers,and management's character and capability is known as

A) covenant waivers.
B) due diligence.
C) indenture evaluation.
D) a debenture.

Due Diligence

The investigation or exercise of care that a reasonable business or person is expected to take before entering into an agreement or transaction with another party.

Covenant Waivers

Agreements that allow a borrower to avoid being in default on their loan covenants, often granted by a lender under certain conditions.

Indenture Evaluation

The process of assessing the terms and conditions of a bond agreement, known as an indenture.

  • Understand the importance of accounting values in the evaluation of company worth and the determination of critical financial metrics.
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PK
Pranjal KanthJun 28, 2024
Final Answer :
B
Explanation :
Due diligence involves a comprehensive evaluation of various aspects of a business, including the business itself, customers, suppliers, and management. This evaluation is typically performed by potential investors or buyers to assess the risks associated with the investment or acquisition. Covenant waivers are specific agreements between lenders and borrowers related to certain terms and conditions of a loan. An indenture is a legal document that outlines the terms of a bond issue. A debenture is a type of long-term debt instrument issued by companies or governments. None of these options involve a qualitative assessment of a business, its customers, suppliers, and management like due diligence does.