Please answer True or False (and explain why) to the following statements.

A. Convertible debt can never have an impact on the ownership percentage of a company.

B. Factoring is a method for companies with high risk accounts receivable to insure the receipt of at least some of the cash owed to them.

C. Leasing is not considered a debt for balance sheet and liquidity purposes.

D. A company with a liquidity covenant of $500,000 must maintain that amount of available cash at all times.