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.

---

Definitions:

Consumption

The action or process of using goods and services for personal needs or desires, typically considered as a component of GDP.

Keynes

Refers to John Maynard Keynes, a British economist whose theories on government economic intervention to mitigate the adverse effects of recessions and depressions significantly influenced modern macroeconomics.

Aggregate Demand

The entire market demand for goods and services in an economic setting, priced collectively at a given level during a specified period.

Aggregate Supply

The aggregate amount of commodities and services scheduled for sale by businesses within a national economic framework during a designated timeframe.