Which of the Following Is Not an Example of a Negative

question 57

Multiple Choice

Which of the following is not an example of a negative covenant?

• A) Borrowers may not sell accounts receivable to generate cash.
• B) The borrower is required to maintain a minimum level of net working capital.
• C) Constraints associated with fixed assets regarding the liquidation,acquisition and encumbrance.
• D) Constraints associated with consolidation,merging or combining with another firm.
• E) All of the above are examples of negative covenants.

---

Definitions:

Truth

The quality or state of being in accordance with fact or reality, often considered from philosophical, moral, or factual perspectives.

Trauma Victims

Individuals who have experienced deeply distressing or disturbing events, affecting their emotional and psychological well-being.

Unique Role

A specific, distinctive position or function assumed or assigned to someone or something in a particular context.

Provider

An individual or organization that supplies services or goods, often within a healthcare or commercial context.