A Covenant That Restricts a Company from Making Loans or Otherwise

question 66

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
• E)investment opportunities

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Definitions:

Classical Conditioning

A process of learning through which two stimuli are habitually paired; the response, initially drawn out by the second stimulus, is eventually evoked by just the first stimulus.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with an unconditioned stimulus, eventually triggers a conditioned response.

Unconditioned Stimulus

In classical conditioning, a stimulus that instinctively and automatically induces a response without previously being learned.

Extinction

In psychology, the gradual disappearance of a conditioned response when the reinforcement is withheld; in biology, the end of an organism or of a group of organisms.