The purpose of the restrictive debt covenant that imposes fixed assets restrictions is to ________. A. ensure

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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 answer-question

The Legal Environment of Business

ISBN: 978-0538473996

11th Edition

Authors: Roger E Meiners, Al H. Ringleb, Frances L. Edwards

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Posted Date: Jun 03, 2019 05:04 AM

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The purpose of the restrictive debt covenant that imposes fixed assets restrictions is to ________. A. ensure

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Restrictive debt Covenant C Prevent he firm from liquidation and ensure its ... View the full answer

The Legal Environment of Business

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