Which of the following is not an example of a negative covenant?
A) Borrowers may not sell accounts receivable to generate cash.
B) The borrower is required to maintain a minimum level of net working capital.
C) Constraints associated with fixed assets regarding the liquidation, acquisition and encumbrance.
D) Constraints associated with consolidation, merging or combining with another firm.
E) All of the above are examples of negative covenants.
Correct Answer:
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