Which of the following is not a purpose served by debt covenants? 4 Multiple Choice 0.4 points 01:22:10 Preservation of repayment capacity References Protection against credit damaging events Triggers and signals Guarantee of no default by the creditor When one party to a business relationship can make decisions that benefit him or her but harm another other party in the relationship: 5 Multiple Choice 0.5 points 8 01:22:05 a lawsuit is automatically filed. References a contract arises. O a conflict of interest arises. a contingent liability arises. Contract terms: 7 Multiple Choice 0.5 points 8 01:21:59 O confer the rights and obligations of the borrower. References depend on data in financial statements that are issued before the contract is executed. cannot be designed to eliminate or reduce conflicting incentives. do not use financial accounting numbers to monitor compliance with contract terms. A typical rate formula for a public utility includes: 8. Multiple Choice 0.5 points 8 01:21:55 revenue, operating costs, and taxes. References operating costs, depreciation, and taxes. O advertising, depreciation, and taxes. O operating costs, bad debt provisions, and depreciation