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QUESTION 2 You are the loans manager for a bank and you are currently writing a loan contract for a medium-sized manufacturing company. Within the
QUESTION 2 You are the loans manager for a bank and you are currently writing a loan contract for a medium-sized manufacturing company. Within the loan contract you intend to incorporate a number of positive and negative loan covenants. a) Explain why a financial institution would incorporate loan covenants into a loan contract. b) Discuss the nature of positive and negative covenants and give two examples of each. (25 marks) END
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