Which of the Following Statements Is Incorrect

question 40

Multiple Choice

Which of the following statements is incorrect?

• A) Companies may take advantage of structural changes (e.g., Marriott) to evade the constraints of protective covenants.
• B) Bonds with protective covenants sell at a higher price than otherwise equivalent bonds without such protection for their investors.
• C) Protective covenants are offered for the benefit of common stockholders.
• D) Protective covenants are offered for the benefit of bondholders.

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Definitions:

Cutoff Test Scores

Threshold scores used to determine qualifications for academic programs, scholarships, or other opportunities based on standardized testing.

Discrimination

Unjust treatment or consideration of individuals or groups based on characteristics such as race, age, sex, or religion.

Pregnancy

A condition of carrying one or more embryos or fetuses within the womb.

Industry Classification

A system that categorizes companies and business activities into specific groups based on similar production processes, products, or behaviors.