A Key Difference Between a Positive Covenant and a Negative

question 17

Multiple Choice

A key difference between a positive covenant and a negative covenant is,for a:

• A) positive covenant, a company must comply with restrictions on its financial structure.
• B) negative covenant, a company must maintain a minimum level of working capital.
• C) negative covenant, a company must provide annual audited financial statements.
• D) positive covenant, a company must maintain a minimum debt to gross cash flow ratio.

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Definitions:

Peripheral Route

A mode of persuasion in which an individual is influenced by superficial cues or aspects rather than the central, argumentative content of a message.

Central Route

A persuasive communication strategy that focuses on logical arguments and high-quality information to influence beliefs, attitudes, and behaviors.

Automatic Processing

Cognitive processes that occur without conscious thought or effort, often enabling quick responses or decisions based on learned information.

Peripheral Cue

in the context of persuasion, refers to environmental or contextual factors that influence people's attitudes or responses, rather than the central quality of the message itself.