Multiple Choice
Which of the following is an example of a positive covenant?
A) The firm must limit the amount of dividends it pays according to some formula.
B) The firm cannot pledge any assets to other lenders.
C) The firm cannot merge with another firm.
D) The firm cannot sell or lease any major assets without approval by the lender.
E) The company must maintain its working capital at or above some specified minimum level.
Correct Answer:
Verified
Correct Answer:
Verified
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