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The purpose of the restrictive debt covenant that imposes fixed assets restrictions is to ________. A. ensure a cash shortage does not cause an inability

The purpose of the restrictive debt covenant that imposes fixed assets restrictions is to ________.

A.

ensure a cash shortage does not cause an inability to meet current obligations

B.

prevent the firm from liquidation and ensure its ability to repay the debt

C.

protect the lender by controlling the risk and marketability of the borrower's security investment alternatives

D.

limit the amount of

fixedminuspayment

obligations

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