Answer to Question #230988 in Economics for DWA

Question

Identify the issues or concerns that relate to each stakeholder you have identified

Answer 1

What you need to pay attention to before entering into a deal is your counterparty. You can conclude a deal without a single mistake, but if you have not checked your counterparty, then consider that this deal was concluded blindly and there is a possibility that it will not only not become profitable for you, but also cause your losses. If you draw up a contract, then you need to do it competently. Or not at all.

What do you need to know about your counterparty? Ideally, everything. But let's list the main points:

check the reviews on the internet - what do other people say about the counterparty?

protect yourself and check the constituent documents of the company;

find out if there are any bankruptcy cases against the counterparty. If it is at the stage of bankruptcy, this will be an obstacle to your receipt of money for the goods or services supplied.

Company Longevity and Economic Stability: Making a deal with a fly-by-night company is clearly a risky endeavor.

the facts of fraud, crimes, administrative offenses - check inside and out, go through all channels, anything is possible!

Do not be lazy and go through each item. It will not take much time, but, having studied the counterparty in detail, you can sleep peacefully at night. If you do not get to know your counterparty as closely as possible now and do not know what can be expected from him and what is not, then this can lead to the fact that at the time of execution of the transaction you will see your counterparty in the most unattractive light - it can be a fraudulent company - one-day or bankrupt. It is logical that it will be better if you know about it right away.

The signers of the deal are equally important. What should you know about them? Ideally, of course, everything too:

make sure that the person is authorized to sign transactions - if not, this may result in the invalidity of the transaction;

compare your passport data, look at the photo - is the person in front of you?

a person signs a document with a power of attorney? Study it! The term of the power of attorney, the powers of the person, the signatures of the managers, and whether they are certified by seals.

It is also necessary to check the content of the transaction. If we are talking about the transfer of property, then you definitely need to make sure that your counterparty is its owner, and that the property itself is not in limited circulation. And if it is, then does the counterparty have a license.