What Best Describes The Term Due Diligence?

How do you use due diligence in a sentence?

The lawyer did all of the necessary due diligence to prepare a case before the trial.

If due diligence would have been done, the accident could have been prevented.

While you should perform due diligence before buying a used car, you also shouldn’t be paranoid..

What is due diligence example?

It can be a legal obligation, but the term will more commonly apply to voluntary investigations. A common example of due diligence in various industries is the process through which a potential acquirer evaluates a target company or its assets for an acquisition.

What describes due diligence?

due diligence | Business English the action that is considered reasonable for people to take in order to keep themselves or others and their property safe: exercise/demonstrate due diligence People have to exercise due diligence and watch what’s being bought on their credit cards. ACCOUNTING.

What does diligence mean in law?

The attention and care requiredThe attention and care required of a person in a given situation; the opposite of Negligence. There may be a high degree of diligence, a common degree of diligence, and a slight degree of diligence, with their corresponding degrees of negligence.

What are the types of diligence?

The three main categories of due diligence are legal, financial and commercial. Although these have traditionally been distinct, the best due diligence programmes maintain an element of close cooperation as the work in one area can often inform the checks being carried out elsewhere.

What are the two types of due diligence?

Types of Due DiligenceLegal.Financial.Merger and Acquisition.Customer.Human Resources.Environmental.Taxes.Commercial.

What’s another word for due diligence?

Find another word for diligence. In this page you can discover 40 synonyms, antonyms, idiomatic expressions, and related words for diligence, like: assiduity, pertinacity, attention, industry, perseverance, sedulousness, persistent exertion, industriousness, inactivity, lethargy and indifference.

How do you conduct due diligence?

Due diligence checklistLook at past annual and quarterly financial information, including: … Review sales and gross profits by product.Look up the rates of return by product.Look at the accounts receivable.Get a breakdown of the business’s inventory. … Make a breakdown of real estate and equipment.More items…•

What is proper diligence?

The dictionary definition says that due diligence means “the care that a reasonable person exercises to avoid harm to other persons or their property.” In plain English,due diligence means doing your homework. Before putting your business funds to work on anything, you should make yourself an expert.

What is no diligence?

1 an insufficiency, shortage, or absence of something required or desired.

What is due diligence checklist?

A due diligence checklist is an organized way to analyze a company that you are acquiring through sale, merger, or another method. … A due diligence checklist is also used for: Preparing an audited financial statement or annual report. A public or private financing transaction.

Why is due diligence important?

Financial due diligence in particular allows the buyer to assess all financial aspects of a potential acquisition to determine what the benefits, liabilities, risks and opportunities are. In conjunction with other forms of due diligence it is generally the best way to ensure what you pay is justified.

What diligently means?

Doing something diligently means doing it thoroughly and well. It’s the opposite of doing it lazily or shoddily. If you are tireless, persevering, and do things with great care, then you do things diligently. This is an adverb that goes with hard and careful work.

What is the opposite of diligence?

diligence. Antonyms: indifference, carelessness, neglect, inattention, heedlessness, desultoriness, inertness, idleness. Synonyms: care, assiduity, attention, application, heed, industry.