All of the following are examples of restrictive debt covenants EXCEPT
A) limiting the firm's annual cash dividend payments.
B) supplying audited financial records.
C) prohibiting combinations with other firms.
D) management restrictions to maintaining certain key employees.

Question

Quizplus · Accepted Answer

Supplying audited financial records is not a restrictive debt covenant as it does not limit the actions of the firm, but rather provides transparency to lenders. The other options are all examples of restrictive debt covenants that limit the firm's actions or require certain actions to be taken.

All of the Following Are Examples of Restrictive Debt Covenants