Write short notes on the following: (ii) Disadvantages of virtual data room.

Virtual Data Room is a site where all the required data of the prospective buyer are stored in digitalized or electronic form. Due diligence exercise these days is carried out through creation of virtual data room in the form of internet site where all the confidential/ material business information is stored. Some Disadvantages of Virtual Data Room: limited interaction with prospective sellers lack of clarity of documents loaded on the data-site inability to copy or print information some times becomes a hurdle access to sensitive information such as contracts to third parties poses legal challenges relating to confidentiality of information.