Business dealings are always extremely sensitive. Each transaction needs to be dealt with a lot of study and caution. Entering into long-term relationships with customers and vendors require a deep understanding of the people you deal with. Often, contracts are signed between businesses for a long period, counted in years! hence, it is important to know whom you are dealing with. It helps in making well-informed decisions while selecting a potential vendor, and minimizes the risk of exposing oneself to future problems of ignorance.