Which of the Following Is Not an Example of a Negative

question 60

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.

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Definitions:

Hydromechanical Transmission

A type of transmission that combines hydraulic and mechanical systems to transfer and vary power.

Transmission Oil Pump

A pump located inside the transmission that circulates transmission fluid through the system, ensuring smooth operation of the gears and cooling.

PTO Mode

Power Take-Off mode, which diverts power from the vehicle's engine to operate external equipment or machinery.

Allison Hydromechanical Transmission

A type of transmission combining hydraulic and mechanical elements, often found in heavy vehicles, offering smooth power delivery.