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:

Higher Margins

Refers to increased profitability, achieved by either raising selling prices or reducing production costs, resulting in a larger difference between sales revenue and the cost of goods sold.

Finance Managers

Professionals responsible for managing the financial health of an organization, including planning, organizing, controlling, and monitoring financial resources.

Analog to Digital

describes the process of converting information from a physical format into a digital one, enabling easier manipulation, storage, and transfer.

Brand Asset Valuator

A strategic tool used to assess the value and strength of a brand based on factors such as differentiation, relevance, esteem, and knowledge.