Which of the Following Refers to the Possibility That a Firm's

question 48

Multiple Choice

Which of the following refers to the possibility that a firm's owners or managers will take actions contrary to the promises contained in the covenants of the securities the firm issues to raise funds?

• A)Liquidity risk.
• B)Price risk.
• C)Credit risk.
• D)Intermediation.
• E)Agency costs.

---

Definitions:

.xltx

A file extension for Excel Template files, which provide a pre-formatted layout and structure for creating new Excel spreadsheets.

AutoSum

A function in spreadsheet applications that automatically calculates the sum of a selected range of cells.

Round

A shape having a continuous curve without edges or corners, often used in geometry and design; alternatively, it can refer to advancing or modifying numbers to a specific degree of precision.

Average

A statistical measure representing the central or typical value in a set of data, calculated by dividing the sum of all values by the number of values.