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:

Linked Table

In database management, a table that is connected to another table or data source, allowing for data synchronization or referencing.

Field

In computing, a field refers to an area allocated for a specific piece of data within a database.

Foreign Key Field

A field in a database table that creates a linkage between two tables by referencing the primary key in another table.

Relational Database

A type of database that stores and provides access to data points that are related to one another, typically structured in tables.