A Clause That Requires the Borrower to Maintain a Minimum

question 82

Multiple Choice

A clause that requires the borrower to maintain a minimum level of working capital until the loan is repaid is known as ______.

• A) covenants
• B) assurances
• C) endorsements
• D) guarantors

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Definitions:

Book Value

The value of a company based on its financial statements, calculated by assets minus liabilities.

Mineral Extraction

The process of removing valuable minerals or other geological materials from the Earth, typically from an ore body, lode, vein, seam, or reef.

Book Value

The net value of a company's assets minus its liabilities, often used to estimate a company's worth.