Question

The written agreement between a corporation and its bondholders might contain a prohibition against paying dividends in excess of current earnings. This prohibition is an example of a(n):

A. maintenance of security provision.
B. collateral restriction.
C. affirmative indenture.
D.restrictive covenant.
E. None of the above.

Answer 1

Answer:

D.restrictive covenant.

Explanation:

Restrictive covenant is a clause in an employment contract, which prohibit employee from taking favor or benefit of ex employer´s brand, data, information, etc. This help the employer to protect its data and information from being misuse or used against them.

This clause also ristrict employee from working for a direct competitive company.

It also ristrict employee from poaching client or business from the ex employer´s company.

It also ristrict employee from being in direct contact with client or vendors.