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CSEET · Business Communication · Common Business Terminologies

Which of the following pairs correctly matches a corporate term with its meaning?

Due diligence means a thorough investigation of a business or transaction before finalising a deal. The other pairs are wrong: blue chip means a well-established company, quorum is the minimum attendance for a valid meeting, and liquidation means winding up.

  1. ADue diligence – a thorough investigation of a business or transaction before finalising a dealCorrect
  2. BBlue chip – a start-up with no track record and high risk
  3. CQuorum – the maximum number of members permitted to attend a meeting
  4. DLiquidation – the expansion of a company into new markets

Explanation

Due diligence is the careful investigation done before a deal such as an acquisition or investment. A blue chip is a large, well-established and financially sound company, not a start-up. Quorum is the minimum number of members needed to hold a valid meeting, not the maximum. Liquidation is winding up a company, not expansion.

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