Long-Term Loan Agreements Always Contain Provisions,or Covenants,that Constrain the Firm's

question 22

True/False

Long-term loan agreements always contain provisions,or covenants,that constrain the firm's future actions.Short-term credit agreements are just as restrictive in order to protect the interest of the lender.

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Definitions:

Political Tactics

Strategies used within an organization to gain advantage or support for one's goals or interests.

Institutionalization

Institutionalization is the process through which certain practices, relationships, or norms become established and accepted as a part of society or organization's culture.

Power

Refers to the capacity or ability of an individual or group to influence or control the actions and outcomes within an organization or society.

Legitimating Tactic

Legitimating tactic refers to strategies or actions undertaken by an individual or organization to justify or validate decisions, policies, or practices to gain acceptance or compliance from others.