Which of the Following Is NOT a Typical Negative Bond

question 354

Multiple Choice

Which of the following is NOT a typical negative bond covenant?

• A) The firm must limit dividend payments.
• B) The firm cannot merge with another firm.
• C) The firm cannot issue additional long-term debt.
• D) The firm cannot allow its bond rating to fall below its initial level.
• E) The firm cannot pledge any assets to other lenders.

---

Definitions:

Trait Resistance

A personality characteristic that involves resilience and an ability to withstand stress or adversity.

Reduced Structure

A less formal or less rigid framework or environment, which can allow more flexibility and adaptability.

Attendance Agreement

A commitment or pact among parties to be present at designated times and places, often used within educational or therapeutic settings to ensure participation.

Humanistic Philosophy

A psychological perspective that emphasizes the study of the whole person, and the uniqueness of each individual, focusing on their potential for personal growth and self-improvement.