What is a debt incurrence test and when does it come into play?
What will be an ideal response?
The debt incurrence test only comes into play when the company wishes to do additional borrowing. In order to take on additional debt, the required interest or fixed charge coverage figure adjusted for the new debt must be at a certain minimum level for the required period prior to the financing. Debt incurrence tests are generally considered less stringent than maintenance provisions.
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Which of the following is not an approach to making negotiations less visible?
A. Establish a reputation for cooperation. B. Be aware of time pressure. C. Establish "privacy" prior to the beginning of negotiations. D. Screen visibility during negotiations.
Many families with children are now attracted to the shopping district in Forest Ridge. What characteristics about families as consumer groups might the owners of The Attic Trunk want to keep in mind?
A) Though more women hold jobs outside the home today than when The Attic Trunk first opened, husband-wife involvement in the buying process has remained relatively unchanged. B) Children have considerable amounts of disposable income and have a strong influence on family buying decisions. C) Women seldom account for any technology-related purchases. D) Women typically account for most habitual purchases. E) Men make all the major purchasing decisions in most families.
Payday lenders
A) make money by providing one-time assistance during a time of financial need. B) make money by keeping borrowers in debt. C) encourage repeat borrowing. D) all of the above.
The smallest average-sized depository institution is ________
A) credit unions B) savings and loan associations C) commercial banks D) money market mutual funds