The purpose of the restrictive debt covenant that prohibits the sale of accounts receivable is to ________
A) assure the lender that additional borrowing is constrained
B) limit the amount of fixed-payment obligations
C) limit the realization of current assets to cash
D) limit the payment of annual cash dividends
C
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Which of the following arises in policies in which the insured event occurs during a coverage period but a claim is not filed or reported until many years later?
A. Short-tail losses. B. Adverse selection. C. Moral hazard. D. Long-tail losses. E. Social inflation.
When asked a potentially illegal question, which of the following would be the best response?
A) Refuse to answer the question B) File a complaint with the EEOC C) End the interview D) Try to determine why the question was asked E) Politely explain to the employer that the question is illegal and should not be asked