1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
mezya [45]
3 years ago
10

The purpose of the debt covenant that requires maintaining a minimum level of net working capital is to ________.A) protect the

lender by controlling the risk and marketability of the borrower's security investment alternativesB) limit the amount of fixed-payment obligationsC) ensure a cash shortage does not cause an inability to meet current obligationsD) limit the annual cash dividends paid by the firm
Business
1 answer:
erma4kov [3.2K]3 years ago
7 0

Answer:

Answer is option C i.e. ensure a cash shortage does not cause an inability to meet current obligations.

Explanation:

Debt covenants can be understood as an agreement between the lenders and the borrower. There are certain terms that are to be considered by the parties of the agreement. One such term is the maintenance of a minimum level of net working capital so that when a company/organization that has borrowed the money runs bankrupt can meet its obligation to pay back the required amount to the lender on time. Therefore, maintenance of a minimum level of net working capital is to ensure that the cash shortage does not cause an inability to meet current obligations.

You might be interested in
Consider the market for Ping golf clubs. Suppose the price of memberships at local golf courses increases. Assume memberships at
Tema [17]

Answer:

Left

Explanation:

Complement goods are goods that are used together. If the price of one good goes up, consumers would demand less of the other good.

If the price of club membership increases, the demand for club membership would fall. Since membership has fallen ,there won't be need to purchase golf clubs as they are complements, so the demand for golf clubs would fall and the demand curve for golf clubs would shift to the left.

I hope my answer helps you

5 0
3 years ago
Two advantages of using ___________ to fill open positions are: (1) it improves the morale of current employees, and (2) the per
mel-nik [20]

Answer:Internal recruitment

Explanation:

Internal recruitment happens When the company as a vacancy and looks with in its existing employees to fill the the vacant position. Hiring within the company has many because the company is hiring some one who is already familiar with culture and ethos of the company, he or she is also familiar with the procedures and operations of the company that reduces induction time and possible training time.

The costs associated with internal recruitment are significantly lower than the costs of recruiting externally for example, recruiting externally the company has to do background checks on the new employees and sometimes pay the the recruiting agency for their services. It also takes a long time to find a suitable candidate when recruiting externally because the company receives many applications which may result in an increase in admin costs associated with recruiting externally.

One major draw back of this recruiting strategy is that it leaves gaps within company work structure or work force. When employees are frequently changing position within the organization it may cause disruption in the function of the company

6 0
3 years ago
During global culture training for a group of employees who are being transferred to Egypt, Charmaine, the HR training manager,
joja [24]

Answer: Option E

Explanation: Cultural training refers to the training that is given to an individual for informing them about other cultures know-how.

In the Arab culture, the holding of hands is considered as an act of giving respect to others. It is considered as showing devotion and equality to the opposite party. Such acts comes from the well known hospitality culture of Arabic countries.

Thus, from the above we can conclude that the correct option is E.

7 0
3 years ago
Why do todayâs internet web applications and smartphone apps need databases?
siniylev [52]
They need databases so that they can have better access to information with the use of the internet. It also allows users to create backups with the help of cloud storage apps like cloud software.  Aside from that, it makes it easier for users to update files, software and operating systems with the help of databases.
3 0
3 years ago
Ketchem Corp., a cash basis taxpayer, and Catcham Corp., an accrual basis taxpayer, are parent-subsidiary corporations. In Janua
Softa [21]

Answer: B. $770,000

Explanation:

The taxable income that they would report on the consolidate tax return would be $770,000 ($600,000 + $120,000 + $50,000)

The reason why we have added $50,000 is because the Ketchem sold $50,000 worth of supplies to Catcham and Catcham were able to pay that amount within 20 days. That is in the month of November.

Also, the consolidated report is to be made after December 27, therefore, we will include this transaction as it was before 27th December.

7 0
3 years ago
Other questions:
  • A 30-year 7% corporate bond was issued exactly 10 years ago. You purchased this bond today, when it was trading to yield 9%. Tom
    7·2 answers
  • A firms supply curve is equal to _________________ above the minimum point on the ________________curve. Select the correct answ
    13·1 answer
  • Fiscal policy lags:_________.
    8·1 answer
  • According to the Fed, what were the major problems during the financial crisis of 2008? Check all that apply.
    9·2 answers
  • Bonds that may be exchanged for common stock at the option of the bondholders are called
    5·1 answer
  • Love It Industries manufactures​ custom-designed playground equipment for schools and city parks. Love It expected to incur $ 78
    6·1 answer
  • Cullumber Corporation purchased a machine on January 2, 2020, for $4100000. The machine has an estimated 5-year life with no sal
    14·2 answers
  • Jebali Company reports gross income of $340,000 and other property-related expenses of $229,000 and uses a depletion rate of 14%
    8·1 answer
  • Travis has a 2,400 square foot home. He is self employeed and uses one room of his home exclusively for his business. The area o
    9·1 answer
  • he post-closing trial balance differs from the adjusted trial balance in that it does not a.include income statement accounts b.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!