Covenants Restricting the Use of Leasing and Additional Borrowings Primarily

Multiple Choice

Covenants restricting the use of leasing and additional borrowings primarily protect:

A) the equityholders from added risk of default.
B) the debtholders from the added risk of dilution of their claims.
C) the debtholders from the transfer of assets.
D) the management from having to pay agency costs.
E) None of these.