Which of the Following Is Not an Example of a Debt

question 27

Multiple Choice

Which of the following is not an example of a debt covenant?

• A) a maximum leverage ratio of 70%.
• B) a maximum interest cover of 2.5 times.
• C) a restriction in the amount of dividends distributed as a percentage of profit.
• D) a restriction in undertaking mergers and takeovers unless approved by the lender.

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Definitions:

Labor Force

The total number of people both employed and actively seeking employment in an economy.

Labor Force Participation Rate

The labor force as a percentage of the adult population.

Adult Population

The adult population consists of all individuals in a certain region or country who are considered adults, typically based on achieving a specific legal age of majority.

Looking for Work

The activity of actively seeking employment or trying to find a job.