A Covenant That Restricts a Company from Making Loans or Otherwise

question 75

Multiple Choice

A covenant that restricts a company from making loans or otherwise providing credit is best viewed as a restriction on which of the following?

• A) issuing new debt
• B) dividends and share repurchases
• C) mergers and acquisitions
• D) asset disposition

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Definitions:

Unique Characteristics

Traits or features that distinguish an individual, object, or concept from others within the same category or group.

Social Category

Classification of people into groups based on shared characteristics such as gender, race, or religion.

Primary Group

A small, close-knit group of individuals who interact over a long period of time on direct and personal levels, such as a family or close friends.

Social Identity

The part of an individual's self-concept derived from perceived membership in a social group, including its norms and relationships.