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Due Diligence
General
:
Measure
of
prudence
,
responsibility
, and
diligence
that is expected from, and ordinarily exercised by, a
reasonable
and prudent
person
under the circumstances.
Business
:
Duty
of a firm's
directors
and
officers
to
act
prudently in evaluating
associated
risks
in all
transactions
.
Investing
:
Duty
of the
investor
to gather necessary
information
on actual or potential
risks
involved in an
investment
. Negotiating:
Duty
of each
party
to confirm each other's
expectations
and understandings, and to independently verify the
abilities
of the other to fulfill the
conditions
and
requirements
of the
agreement
. Also called
reasonable
diligence
.
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2012-08-04
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