CFA Practice Question

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CFA Practice Question

Which of the following would not be considered an example of a typical negative covenant of a loan document?

A. The firm may not merge with another firm.
B. The firm may not pledge its assets with another lender.
C. There are limitations on the amount of dividends the firm may pay.
D. The firm may not sell or lease its major assets without prior approval by the lender.
E. The firm must furnish periodic financial statements to the lender.
Correct Answer: E

User Contributed Comments 2

User Comment
Khadria "E" seems to be a Affirmative Covenant
miiyeung E, is affirmative - an action taking place
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