Which of the Following Is Not a Common Debt Covenant

question 34

Multiple Choice

Which of the following is not a common debt covenant restriction?

• A)Maintenance of a minimum level of retained earnings before dividends can be paid.
• B)Maintenance of a minimum working-capital ratio.
• C)Specification of a maximum debt-equity ratio.
• D)Specification of a minimum earnings per share.

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Definitions:

Protective Tariff

A tax imposed on imports to protect domestic industries from foreign competition by making imported goods more expensive.

Protective Tariff

A tariff imposed on imports to protect domestic industries from foreign competition by making imported goods more expensive.

Domestic Producers

Companies or individuals within a country that manufacture goods or offer services domestically.

Per-unit Tariff

A type of tax imposed on each unit of imported goods, raising the cost of these goods to the importer.