Which of the Following Would Be Considered a "Positive" Loan

question 43

Multiple Choice

Which of the following would be considered a "positive" loan covenant?

• A) Days receivables outstanding cannot exceed 30 days
• B) No change in senior management
• C) Capital outlays cannot exceed $1,000,000 per year
• D) No additional liens may be placed on the collateral
• E) The bank must approve any firm mergers or acquisitions

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Definitions:

Structural Development

The process of growth and change in the physical or organizational framework of a biological entity or system.

Neural Maturation

The process of growth and development of the nervous system, especially in terms of complexity and efficiency.

Socioeconomic Status

An individual's or family's economic and social position in relation to others, based on income, education, and occupation.

Prenatal Care

Medical and healthcare provided to a pregnant woman and her developing baby before birth to ensure their health and well-being.