Affirmative covenants generally would not include which of the following stipulations? 11 Multiple Choice 0.5 points 8 01:21:42 The lender has the right to inspect business assets and business contracts. References Limits on the borrower's total indebtedness. The borrower must maintain insurance on business properties. Specific financial covenants and reporting requirements. Based on a comprehensive survey of U.S. companies, the most common financial performance measure used in annual and long-term incentive plans for senior executives is: 14 Multiple Choice 0.5 points X 01:20:16 return on equity. References O economic value added. return on capital. o net income or revenues. In using financial statements to monitor compliance with debt covenants: 18 Multiple Choice 0.5 points 01:18:20 mandatory changes in accounting principles can be ignored in all cases. References many loan agreements have financial covenants that rely on the accounting rules in place when the loan is first granted. the lender is in default if not enforcing the borrower's compliance with the most recent accounting principles. the lender must renegotiate the covenants if a new accounting principle harms the borrower's compliance. A lender's requirement for a borrower to maintain a certain level of fixed charge coverage: 19 Multiple Choice 0.5 points 01:16:21 directly enhances the borrower's ability to pay dividends. References indirectly enhances the borrower's ability to pay dividends. O directly limits the borrower's ability to pay dividends. O indirectly limits the borrower's ability to pay dividends