The purpose of the debt covenant that requires maintaining a minimum level of net working capital is to ________
A) protect the lender by controlling the risk and marketability of the borrower's security investment alternatives
B) limit the amount of fixed-payment obligations
C) ensure a cash shortage does not cause an inability to meet current obligations
D) limit the annual cash dividends paid by the firm
C
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Profit-sharing plans share company profit based on
a. past financial results. b. monthly expectations. c. individual performance results. d. future financial results. e. projected financial results.
Write the appropriate expression for profit
Sara's Sensible Critters makes two kinds of catnip toys: balls (x1) and mice (x2). The relationship between demand and price for balls and mice is: x1 = 1800 - 150p1 x2 = 1500 - 300p2 The cost for a catnip ball is $2 and for the mouse, $3. Sara has only 200 ounces of catnip on hand. A ball uses a tenth of an ounce and a toy mouse uses one-quarter of an ounce. A) Max Z = (p1 - 3)x1 + (p2 - 2)x2 B) Max Z = (p1 + 2)x1 + (p2 + 3)x2 C) Max Z = (p1 - 2)x1 + (p2 - 3)x2 D) Min Z = (p1 - 2)x1 + (p2 - 3)x2