Which of the Following Is an Example of an Appropriate

question 84

Multiple Choice

Which of the following is an example of an appropriate loan covenant?

• A) The firm must increase its debt ratio by at least 10 percent.
• B) The firm must reduce its total asset turnover by 10 percent.
• C) The firm must purchase an insurance policy on a key employee.
• D) All of the options are examples of an appropriate loan covenant.

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