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From the creditor's perspective, what is the purpose of loan covenants? To assist government agencies in examining financial statements To help to ensure a company

From the creditor's perspective, what is the purpose of loan covenants?

To assist government agencies in examining financial statements

To help to ensure a company will be able to repay the loan

To aid in forecasting future revenues and expenses

To help to determine the amount of money lent to a company

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