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The basic assumption of ethical theory is that:
Equity
The value of an asset after deducting the total liabilities, or the ownership interest in a company divided among shareholders.
Current Ratio
A liquidity ratio that measures a company's ability to pay short-term obligations, calculated as current assets divided by current liabilities.
Positive Covenant
A clause in a loan agreement that requires the borrower to perform certain actions or meet specific conditions.
Loan Collateral
Assets or property that a borrower offers to a lender as security for a loan, which can be seized if the loan is not repaid.
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