Restrictions included in restricted covenants do NOT generally include
A) working capital restrictions.
B) limits on executive compensation.
C) dividend restrictions.
D) limitations on incurring additional debt.

Question

Quizplus · Accepted Answer

Limits on executive compensation are not typically included in restricted covenants. Restricted covenants usually focus on financial policies and practices that directly affect the company's financial stability and creditors' interests, such as working capital requirements, dividend policies, and debt limitations.

Restrictions Included in Restricted Covenants Do NOT Generally Include