What Are Business Liabilities

question 17

Multiple Choice

What are business liabilities?

• A) The increases in assets that result from profitable operations.
• B) Amounts it expects to collect in the future from customers.
• C) The amounts that owners have invested in the business.
• D) Debts or obligations resulting from past business events.

---

Definitions:

Debt Covenants

Specific agreements entered into by a borrower and lender, included in the terms of a loan or bond issuance, which place restrictions on the borrower to protect the lender.

Repayment Capacity

An assessment of a borrower's ability to repay a loan based on their financial situation.

Mergers and Acquisitions

Business activities where companies purchase or combine with other companies to expand their operations or enter new markets.

Conflicts of Interest

Situations where an individual's personal interests might conflict with their professional duties or responsibilities.