A Blank______ covenant specifies actions that the firm agrees to take. Multiple choice question. positive negative preventive prescriptive

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12-07-2022
Business

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A Blank______ covenant specifies actions that the firm agrees to take. Multiple choice question. positive negative preventive prescriptive

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anshumanaryan799 anshumanaryan799 · Answer 1 · 2022-07-21T13:21:03+02:00

A positive covenant specifies actions that the firm agrees to take.

This is a statutory provision of a contract or legal document in which one party promises or is prevented from taking certain actions or has a specific obligation to protect the interests of the other party.

High-risk projects tend to transfer wealth from bondholders to shareholders. Why do bond contracts limit high-risk investments by shareholders in the event of a financial emergency? Bondholders cannot limit the company's future credit decisions.

Steal the key. Negative contracts are contracts that prevent a company from taking certain actions. This is a promise to do nothing. For example, a contract with a public company may limit the number of dividends a public company can pay to its shareholders.

Learn more about positive covenant here: https://brainly.com/question/24503148

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