Protective Rights Include

question 5

Multiple Choice

Protective rights include:

• A) the right of a party holding a non-controlling interest in an investee to approve capital expenditure greater than that required in the ordinary course of business, or to approve the issue of equity or debt instruments.
• B) the right of a lender to seize the assets of a borrower if the borrower fails to meet specified loan repayment conditions.
• C) a lender's right to restrict a borrower from undertaking activities that could significantly change the credit risk of the borrower to the detriment of the lender.
• D) all of the options are correct.

---

Definitions:

Open Person

An individual characterized by transparency, willing to share thoughts, and open to new experiences.

Nonthreatening Manner

A way of communicating or behaving that does not make others feel scared, anxious, or threatened.

Open Communication

The practice of sharing information, thoughts, and feelings in a straightforward and transparent manner, fostering mutual understanding and trust.

Role Expectations

The behaviors and actions expected from an individual in a certain position or status within a group or society.