Why do covenants need to be considered in a three statement model? Select all that apply.

Covenants establish minimum financial performance thresholds that the company must meet to maintain compliance with its debt agreements.

Covenants can trigger default provisions or penalties if the company fails to meet the required financial ratios or metrics.

Covenants impact the company's ability to make certain business decisions, such as issuing dividends or incurring additional debt.