Which of the Following Would Be Classified as a Positive

question 283

Multiple Choice

Which of the following would be classified as a positive protective covenant?

• A) The firm must furnish audited annual financial statements.
• B) The firm cannot pledge any assets to other lenders.
• C) The firm must not issue additional long-term debt.
• D) The firm cannot merge with another firm.
• E) The firm must limit the amount of dividends it pays according to some formula.

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Definitions:

Quantity Demanded

Quantity demanded is the amount of a good or service that consumers are willing and able to purchase at a given price within a specific time frame.

Demand

The total amount of goods or services that consumers are willing and able to purchase at a given price over a specified period of time.

Changes in Income

Variations in the amount of earnings received over a period of time, which can affect consumption, savings, and investment behaviors in an economy.

Tastes and Preferences

Factors that influence consumer decision-making, determining the goods or services consumers demand.