Question

In order to successfully carry out an acquisition, the managers at Pink Inc. prepared a list of potential target companies that it could purchase. In the next step, the managers evaluated each prospective company in depth to understand their methods of operations, processes, procedures, strengths, and limitations in order to choose the best target company. This process of evaluating the companies is best known as:___________.
A- Due diligence
B- Market intelligence
C- Consultation
D- Market evaluation

Answer 1

Answer:

A- Due diligence

Explanation:

Due diligence is an investigation, audit or the review that to be performed in order to confrim the facts within the consideration. It needs the examination of the financial records prior entered into the upcoming transaction with the other party

So as per the given situation, the first option is correct