Which of the Following Statements Is False

question 43

Multiple Choice

Which of the following statements is false?

• A) If the issuer fails to live up to any covenant, the issuer goes into bankruptcy.
• B) The stronger the covenants in the bond contract, the less likely the issuer will default on the bond, and so the lower the interest rate investors will require to buy the bond.
• C) Covenants are restrictive clauses in a bond contract that limit the issuer from taking actions that may undercut its ability to repay the bonds.
• D) Bond agreements often contain covenants that restrict the ability of management to pay dividends.

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Definitions:

Isolate Patients

The practice of keeping patients with contagious diseases away from others to prevent the spread of infection.

Self-Care

The practice of taking action to preserve or improve one's own health, well-being, and managing stress.

Flu Shots

Vaccinations that protect against the influenza virus, recommended annually to reduce the risk of flu and its complications.

Preventing Outbreak

Measures and practices aimed at stopping the spread of infectious diseases before they can become widespread.