A protective covenant: limits the actions of the borrower
What is the meaning of protective covenants?
Protective covenant. A part of an indenture or loan agreement that limits certain actions a company may take during the term of the loan to protect the lender's interests.
What are protective covenants in bonds?
Bond covenants are designed to protect the interests of both parties. Negative or restrictive covenants forbid the issuer from undertaking certain activities; positive or affirmative covenants require the issuer to meet specific requirements.
What are the two types of protective covenants?
There are two types of restrictive covenants:
affirmative and negative.
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Usually, it would be a Credits section or a Contributors section.
An earthquake destroys a good portion of the capital stock but does not affect the production function. Capital per worker will decrease in the short run and stay the same in the long run.
<h3>Is capital stock an asset or equity?</h3>
- Capital stock is not at all an asset within a corporation.
- It is a part of the balance sheet's equity section.
- The shares are reported as an asset when one corporation owns stock in another.
<h3>What's the difference between common stock and capital stock?</h3>
- Common stock is a sort of share issued by the firm that makes up its capital stock, whereas capital stock is the entire number of shares a company is legally permitted to issue in shares.
- Common stock and preferred shares make up a company's capital stock.
<h3>What do you mean by capital stock?</h3>
- The number of common and preferred shares that a corporation is permitted to issue recorded on the balance sheet under shareholders' equity is known as capital stock.
- The maximum number of shares that a corporation can ever have outstanding is equal to the quantity of capital stock.
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Since you have a responsibility to learn basic computer skills, you could lose your job. This is because as an employee who has already finished the necessary training, you are not still proficient in the basic functions in the applications that you use in your department, which is this situation, shouldn’t be the case.
According to the menu cost the firms would be slow to changing prices because .the cost of changing the price might exceed the additional profit the price change would generate.
<h3>What is the menu cost theory?</h3>
This is the theory in the field of economics that helps to ensure the reflection of the effect of the change in price to an establishment.
According to this theory, the the cost of changing the price might exceed the additional profit the price change would generate.
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