The Main Difference Between Direct Private Long-Term Debt Financing and Public

question 117

True/False

The main difference between direct private long-term debt financing and public issues of debt is that direct placements are less likely to have restrictive covenants.

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Definitions:

Cognitive Ability Test

A psychological test designed to measure a person's ability to think, reason, and solve problems.

Incompetent Person

An individual who is deemed legally incapable of entering into legal agreements or managing their own affairs due to mental disability or illness.

Necessaries

Basic essentials that an individual requires for survival, such as food, clothing, and shelter.

Installment Plan

A payment method that allows consumers to pay for goods or services with a series of monthly payments until the total debt is paid.