The purpose of the restrictive debt covenant that imposes fixed assets restrictions is to ________. A. ensure
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Question:
The purpose of the restrictive debt covenant that imposes fixed assets restrictions is to ________.
A. ensure a cash shortage does not cause an inability to meet current obligations
B. protect the lender by controlling the risk and marketability of the borrower's security investment alternatives
C. prevent the firm from liquidation and ensure its ability to repay the debt
D. limit the amount of fixed-payment obligations
Related Book For
The Legal Environment of Business
ISBN: 978-0538473996
11th Edition
Authors: Roger E Meiners, Al H. Ringleb, Frances L. Edwards
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