Which document is necessary when purchasing an established business?

When purchasing an established business, a financial audit is crucial because it provides a comprehensive assessment of the business's financial health. This document details the company's income statements, balance sheets, cash flow statements, and other relevant financial information. By reviewing a financial audit, potential buyers can assess profitability, growth trends, liabilities, and overall financial stability, which are essential for making an informed investment decision.

A business plan is important for establishing future goals and strategies, but it does not reflect the current financial condition of the business. A donation agreement is unrelated to the sale or purchase of a business, as it typically pertains to the transfer of assets without expectation of returns. An employment contract, while vital for defining the terms and responsibilities of employees, does not provide insight into the financial viability or operational status of the business being acquired. Hence, the financial audit stands out as the necessary document in this context.