Covenants That Place Direct Restrictions on Managerial Decisions Are Called

question 87

Multiple Choice

Covenants that place direct restrictions on managerial decisions are called

• A)affirmative restrictions.
• B)affirmative covenants.
• C)negative restrictions.
• D)negative covenants.

---

Definitions:

Risk of Loss

The possibility that an asset's value could decrease due to changes in the market or other factors, affecting the holder's financial position.

Insurable Interest

A requirement that a person must stand to suffer a direct financial loss from the damage, loss, or destruction of the property or life insured.

Goods-in-bailment

Refers to personal property that has been delivered into the hands of another for custody or performance of some service, without transfer of ownership.

Economic Interest

A vested interest in financial gains or losses, typically relating to investments, ownership, or participation in business ventures or market activities.