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:

Gender-Neutral

Pertaining to concepts, language, or designs that do not distinguish roles according to people's sex or gender, aiming for inclusivity and equality.

Cognitive Development Theory

A child development theory that views growth as the mastery of specific ways of perceiving, thinking, and doing that occurs at discrete stages.

Power Orientation

A personality trait or behavior that reflects an individual's focus on gaining and exercising power and dominance over others.

Competitiveness

The desire to win or be better than others, often demonstrated in physical or intellectual challenges.