A Loan Contract That Requires the Borrower to Keep a Certain

question 6

Multiple Choice

A loan contract that requires the borrower to keep a certain percentage of its assets in cash is an example of ________.

• A)screening
• B)monitoring
• C)a restrictive covenant
• D)a patent contract

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Definitions:

Taxability

The condition of being subject to taxes; applicable to income, goods, services, and transactions that can be taxed.

NonTaxable Income

Income that is not subject to taxation by the IRS or state tax authorities; examples include certain gifts, inheritances, and some types of insurance payouts.

Compensation

This represents payment or benefits provided to an employee or executive by an employer for services rendered.

Injuries

Physical harm or damage to a person's body.