The purpose of the restrictive debt covenant that prohibits borrowers from entering into certain types of leases is to
A) limit the amount of fixed-payment obligations.
B) protect the lender by controlling the risk and marketability of the borrower's security investments alternatives.
C) ensure a cash shortage does not cause an inability to meet current obligations.
D) prevent liquidation of assets through large salary increases of key employees.
Correct Answer:
Verified
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