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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.
The conflict management style that Jessica and Ted most
likely used is compromising. This style focuses in finding a solution which is
acceptable for both parties, and at the same time partially achieving what they
want. As stated on the sample situation, both Jessica and Ted decided to both
give in a LITTLE and only ask for SOME of their needs to be met. This kind of
conflict management can also deceive the other party for its passive-aggressive
approach.
