Which of the Following Is Not an Example of Debt

question 3

Multiple Choice

Which of the following is not an example of debt covenant:

• A) a restriction in the amount of dividends distributed as a percentage of profit.
• B) a maximum interest cover of 2.5 times.
• C) a restriction in undertaking mergers and takeovers unless approved by the lender.
• D) a maximum leverage ratio of 60%re.

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Definitions:

Institutions

Established and enduring patterns of social order that govern the behavior and expectations of individuals within a society.

Roles

The behaviors, obligations, and privileges attached to a social position or status within society.

Cultural Expectations

The societal norms or standards that dictate how individuals should behave within their culture.

Socialization

The lifelong process by which individuals learn and internalize the values, beliefs, norms, and social skills necessary to participate within their society.