Please answer True or False to the following statements.

1. Only long-term debt is first in line to be paid on the liquidation or sale of a company.
2. Convertible debt can never have an impact on the ownership percentage of a company.
3. 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.
4. Leasing is not considered a debt for balance sheet and liquidity purposes.
5. A company with a liquidity covenant of $500,000 must maintain that amount of available cash at all times.