From the creditor's perspective,which of the following help to ensure a company will be able to repay a loan?
A)Control environment
B)Loan covenants
C)Control activities
D)Monitoring activities

Question

Quizplus · Accepted Answer

Loan covenants are terms of the loan agreement that,if broken,entitle the lender to renegotiate the loan terms or force repayment.Many lending agreements include loan covenants,which require the company to achieve financial targets,such as maintaining specific levels of assets or stockholders' equity.

From the Creditor's Perspective,which of the Following Help to Ensure