Which of the Following Would Not Be a Likely Example

question 62

Multiple Choice

Which of the following would not be a likely example of a protective covenant provision?

• A) a limit on the amount of dividends a firm can pay
• B) a limit on the corporate officers' salaries a firm can pay
• C) the amount of additional debt a firm can issue
• D) a call feature

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Definitions:

Federal Unemployment Taxes

Taxes imposed on employers to fund the federal government's oversight and support of state unemployment insurance programs.

FUTA

The Federal Unemployment Tax Act (FUTA) is a United States federal law that imposes a payroll tax on employers to fund state workforce agencies.

Annually

Relating to a period of one year, typically used in the context of financial reporting, budgeting, or payments.

Federal Insurance Contributions Act

Legislation that mandates the collection of Social Security and Medicare taxes from both employees and employers.