The purpose of the debt covenant that prohibits borrowers from entering into certain types of leases is
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Question:
The purpose of the debt covenant that prohibits borrowers from entering into certain types of leases is to ________.
Select one:
a. protect the lender by controlling the risk and marketability of the borrower's security investments alternatives
b. limit the annual cash dividends paid by the firm
c. limit the amount of fixed-payment obligations
d. ensure a cash shortage does not cause an inability to meet current obligations
Related Book For
Managers and the Legal Environment Strategies for the 21st Century
ISBN: 978-1111530631
7th edition
Authors: Constance E. Bagley
Posted Date: