Long-Term Loan Agreements Always Contain Provisions, or Covenants, Which Constrain

question 98

True/False

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

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Definitions:

Tasks

Activities or operations carried out by a process or machine.

Routine

A block of code designed to perform a specific operation, often reusable, that is executed to accomplish a task in software development.

Program

A sequence of instructions to be executed by the processor to control a machine or process.

PLCs

Acronym for Programmable Logic Controllers, which are industrial digital computers designed for the automation of electromechanical processes.