A Lender May Be Protected from Deterioration of the Borrower's

question 57

Multiple Choice

A lender may be protected from deterioration of the borrower's creditworthiness if the commercial lending agreement requires the borrower to maintain a

• A)current ratio above a certain level.
• B)return on assets above a certain level.
• C)specified return on equity.
• D)specified accounts receivable turnover.

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