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Explain Due Diligence

Due Diligence:
1. General: Assess of prudence, accountability, and diligence which is expected from, and ordinarily exercised by, a reasonable and prudent person beneath the situations.

2. Business: Duty of the firm's directors and officers to perform prudently in assessing associated risks in each and every transaction.

3. Investing: Duty of investor to group essential information on real or potential risks included in an investment.

4. Negotiating: Duty of each party to validate each other's expectations and understandings, and to separately confirm the abilities of other to accomplish the conditions and necessities of the agreement. Also termed as reasonable diligence.

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