Which of the Following Is a Type of Covenant in a Private

question 15

Multiple Choice

Which of the following is a type of covenant in a private equity investment contract?

• A) ownership right agreements
• B) ratchet provisions
• C) stock option plans
• D) all of the above

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Definitions:

Fracking

A method of extracting oil and natural gas from underground rock formations by injecting a mixture of water, sand, and chemicals at high pressure.

Natural Gas Industry

The sector of the economy that involves the exploration, extraction, processing, and selling of natural gas.

Incentives

Rewards or penalties that motivate individuals or entities to act in specific ways.

Resource May Increase

A scenario in which the available supply of a natural, human, or capital resource grows, potentially affecting economic outputs and markets.