The purpose of the restrictive debt covenant that limits the distribution of profits to shareholders is to ________
A) assure the lender that additional borrowing is constrained or may be subordinated to the original loan
B) limit the amount of fixed-payment obligations
C) ensure a cash shortage does not cause an inability to meet current obligations
D) avoid default of payments to bondholders
D
Business
You might also like to view...
An adjusting entry made at the end of an accounting period that reflects the exchange of cash prior to performance of a related event is classified as a(n)
A) accrual entry. B) deferral entry. C) revaluation entry. D) correcting entry
Business
What category of consumer adopters would purchase a product when the product is no longer considered to be risky? Explain your answer
What will be an ideal response?
Business