Many ____ contain provisions requiring firms to maintain a minimum net working capital provision.

Question

Quizplus · Accepted Answer

Both loan agreements with commercial banks and bond indentures can contain provisions that require firms to maintain a minimum net working capital provision. This is because lenders want to ensure that the borrower has enough current assets to cover their current liabilities and avoid default. Therefore, the correct answer is C, as both A and B are correct. Option D is incorrect as loan agreements and bond indentures can contain such provisions.

Many ____ Contain Provisions Requiring Firms to Maintain a Minimum