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Management Short Question | Gkseries

Q.

While granting the term loan, if lending institution puts a condition to reduce the debtequity ratio by issuing additional equity share-capital or preference share capital, it is known as

[A] asset-related restrictive covenant
[B] cash flow related restrictive covenant
[C] control related restrictive covenant
[D] liability related restrictive covenant
Answer & Explanation

Answer: liability related restrictive covenant