Loan covenants are used for which of the following, Ask an Expert

Accounting

Loan covenants are used for which of the following reasons?

a. To protect the lender from the borrower substantially weakening the borrower's financial position.

b. To protect the borrower from the lender calling the loan early.

c. To protect the auditor from false information by the borrower.

d. To protect shareholders from management taking on too much debt.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9420157

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