Question

Covenants represent: A. The property that a company pledges to guarantee repayment B. Terms and conditions set forth in a lending agreement to reduce the probability of nonpayment C. The maximum that a creditor will allow a customer to owe at any point in time D. Promises the company makes to the creditor

Answer 1

Answer:

D. Promises the company makes to the creditor

Explanation:

• A covenants is a promise at the time of indenture or any other sort of the formal debt agreement that the certain activity will or will not be carried out  and a certain threshold will be met.

• Thus is a form of conditioning in commerce which stops the buyers for  taking any certain decision and they can financial, the information, ownership, and affirmative and the negative or positive covenant.