I have the following problem: If $\Lambda$ is a hereditary, basic and connected algebra and $e$ is an idempotent of $\Lambda$, how can I prove that $e\Lambda e$ is also hereditary?
If $\Lambda$ is split basic, then by Gabriel's theorem it is isomorphic to $\Bbbk Q$ where $Q$ is a finite acyclic quiver. Up to isomorphism you can assume $e$ is the sum of empty paths running over some subset $X$ of vertices. Then $e\Lambda e$ is isomorphic to the path algebra on the full (i.e. induced) subquiver on the vertex set $X$. Thus it is hereditary.