Restrictive covenants are designed to protect both the bondholder and the issuer even though they might constrain the actions of the firm's managers. Such covenants are contained in the bond's indenture.
Answer the following statement true (T) or false (F)
True
Restrictive covenants cover such points as the conditions under which the issuer can pay off the bonds prior to maturity, the levels at which various financial measures must be maintained if the company is to sell additional bonds, and restrictions on the payment of dividends to stockholders when earnings do not meet certain specifications. See 6-1: Characteristics and Types of Debt
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An effective database contains:
A) all transactions a customer has with a firm and interactions that resulted in purchases B) all transactions and all interactions a customer has with a firm C) transactions and interactions of customers that have a high lifetime value D) all transactions of customers
The competing values framework classifies organizational cultures into which of the following?
A. Stable, flexible, and laddered cultures. B. Observable, flexible, competitive, and driven cultures. C. Symbolic, heroic, and basic cultures. D. Clan, adhocracy, market, and hierarchy cultures. E. Observable, espoused, and core cultures.
Potential benefits of an entity's controls in an IT environment include all of the following except:
A. reduction in the risk that controls will be circumvented. B. more timely information. C. eliminate human errors or mistakes. D. consistent application of predefined business rules.
Evaluate the advantages and disadvantages of oral, written, electronic, and nonverbal communication. Specify which method would be best to send an important message, such as the resignation of a position?
What will be an ideal response?