Which of the following are common loan covenants? Assume each item applies only during the term of the loan.

I. Limit on future borrowing

II$.$ Requirement that the borrower maintains a minimum stated level of net working capital

III. Limit on any sales or switches of assets

IV$.$ Limit on the amount of dividends that can be paid

Multiple Choice

I, III, and IV only

I, II$,$ III, and IV

I and IV only

II and III only

I. II$,$ and III only