The purpose of the restrictive debt covenant that imposes fixed assets restrictions is to ________
A) protect the lender by controlling the risk and marketability of the borrower's security investment alternatives
B) limit the amount of fixed-payment obligations
C) ensure a cash shortage does not cause an inability to meet current obligations
D) prevent the firm from liquidation and ensure its ability to repay the debt
D
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A promissory note states that the note is due one year from March 31, 2010 "with interest at the current rate." Is this instrument negotiable?
A ____________ uses an average of a debtor's last six months of gross income to determine whether an applicant must file for bankruptcy under chapter 7 or 13 of the bankruptcy code.
A. ways test B. means test C. income test D. feasibility test E. bankruptcy test
$7,200 is invested each quarter for 5.5 years. Compute the future value if interest is 8% compounded quarterly. Use Tables 23-1A and 23-1B or a calculator
The Mighty Machinery Company subscribes to the Healthy Family Medical Organization. Monthly insurance premiums are: employee without dependents, $350; employee with one dependent, $450; employee with multiple dependents, $550. The Mighty Machinery
Company pays a large part of the premiums for participating employees and their dependents. Participating employees have deducted from their paychecks every month $40 from an employee without dependents, $80 from an employee with one dependent, and $100 from an employee with multiple dependents. The Healthy Family Medical Organization has a deductible of $300 per year for an employee with no dependents, $450 per year for an employee with one dependent, and $600 per year for an employee with multiple dependents. The organization pays 80% of all medical bills in excess of the deductible. To answer all questions regarding health insurance, refer to the above information on Mighty Machinery Company. An employee with nine dependents participates in the company health plan. Compute the amount deducted from the employee's wages in one year.