Asked by Nicholas Boren on Jun 03, 2024
Verified
Provide a definition for the term covenants.
Covenants
A promise by the firm, included in the debt contract, to perform certain acts. A restrictive covenant imposes constraints on the firm to protect the interests of the debtholder.
- Gain knowledge of the diverse short-term funding options for businesses and their qualities.
Verified Answer
TJ
Tahgi JonesJun 05, 2024
Final Answer :
A promise by the firm, included in the debt contract, to perform certain acts. A restrictive covenant imposes constraints on the firm to protect the interests of the debtholder.
Learning Objectives
- Gain knowledge of the diverse short-term funding options for businesses and their qualities.