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

---

Definitions:

Nonmanagerial Employees

Workers within an organization who do not have supervisory roles or responsibilities.

Day-to-day Decisions

Operational choices made on a regular basis within an organization, dealing with routine tasks and immediate issues.

Supervisory Manager

A manager who directly oversees the work of employees and is responsible for day-to-day operations.

Manageable Units

Dividing tasks, projects, or organizational structures into smaller, more easily controlled or handled segments.