December 2014

1: While granting the term loan, if lending institution puts a condition to reduce the debt-equity ratio by issuing additional equity share-capital or preference share capital, it is known as
A.

asset-related restrictive covenant

B.

cash flow related restrictive covenant

C.

control related restrictive covenant

D.

liability related restrictive covenant

 

Answer : D

Explanation :

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Option: A

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