Which of the Following Statements Relating to Debt Covenants Is

question 70

Multiple Choice

Which of the following statements relating to debt covenants is incorrect?

• A) Covenants are written into loan contracts.
• B) If a company breaches a debt covenant it will not need to renegotiate or repay the loan.
• C) Covenants restrict a company's activities.
• D) Companies enter into debt covenants with banks when they borrow a significant amount.

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Definitions:

Somatic Symptom Disorder

A psychological disorder characterized by an excessive focus on physical symptoms, such as pain or fatigue, that cause significant distress or impairment.

Mindfulness

A mental state achieved by focusing one's awareness on the present moment, while calmly acknowledging and accepting one's feelings, thoughts, and bodily sensations.

Acceptance And Commitment Therapy

A form of psychotherapy that encourages individuals to accept their thoughts and feelings rather than fighting or feeling guilty for them.

Factitious Disorder

A mental disorder in which a person acts as if they have an illness by deliberately producing, feigning, or exaggerating symptoms, primarily for psychological reasons rather than financial gain.