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3 years ago

Without effective due diligence the

Business

1 answer:

gtnhenbr [62]3 years ago

5 0

Answer:

b. acquiring firm is likely to overpay for an acquisition.

Explanation:

Due diligence is the process of carefully evaluating a business from different perspectives before making a buy decision. It is a measure of prudence before committing to the acquisition process. Due diligence will involve scrutiny of legal aspects and financial status of a business.

From a legal point of view, due diligence will check legal impediments such as licensing. Other legal documents to review include employee and business contracts. Financial aspects of due diligence involve verification of the accuracy of financial statements as presented by the seller.

Sellers are likely to overstate the worth of a business to attract buyers. Their instances where sellers fail to disclose liabilities. Lack of conducting due diligence will lead to the acquisition of an overpriced entity.

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Answer:

$9,233.

Explanation:

The balance of the loan after the 32th payment can be determined after constructing a loan amortization schedule for this car loan. To construct the amortization schedule, we need to first calculate the monthly instalments (PMT) as this is the missing parameter for our time value of money.

I am using a financial calculator here to calculate the monthly instalment :

PV = $25,000

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Therefore, the monthly instalment PMT is $610.32.

But, we need the balance immediately after the 32th payment, so we construct an amortization schedule - now that we have all the parameters.

On a financial calculator enter 1 INPUT 32, SHIFT AMORT.

Pressing the equal sign gives the principle then interest and finally the balance of this loan after the 32th payment. The balance you should get if you follow this procedure carefully is $9,233.

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2 years ago

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IceJOKER [234]

When the government is in deficit, it A) increases the public debt.

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