Which of the following is an example of an appropriate loan covenant Multiple Choice The firm must not increase its debt ratio by more than 3 percent The firm must keep its current ratio above 2 2 The firm must purchase an insurance policy on a key employee All of the options are examples of appropriate loan covenants

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Which of the following is an example of an appropriate loan covenant? Multiple Choice The firm must not increase its debt ratio by more than

Which of the following is an example of an appropriate loan covenant?

Multiple Choice

The firm must not increase its debt ratio by more than 3 percent.
The firm must keep its current ratio above 2.2.
The firm must purchase an insurance policy on a key employee.
All of the options are examples of appropriate loan covenants.

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