Operating and Financial Constraints Placed on a Corporation by Loan

question 80

Multiple Choice

Operating and financial constraints placed on a corporation by loan provision are ________.

• A) agency costs to lenders
• B) agency costs to a firm
• C) necessary to regulate ownership of a firm
• D) necessary to control the risk of a firm

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Definitions:

Genuineness

The quality of being authentic and sincere in one's interactions, oftentimes considered an important trait in therapeutic contexts.

Preexisting Stereotypes

Preconceived and oversimplified beliefs or ideas held about certain groups or individuals before learning more about them.

Automatic Influence

The unconscious impact of external factors on an individual's thoughts, feelings, or actions.

Unconsciously Influenced

Being affected or guided in thoughts, behaviors, or decisions by factors not within one's conscious awareness.