New Year Sale Limited Time 70% Discount Offer - Ends in 0d 00h 00m 00s - Coupon code: simple70

  1. Home
  2. Discussions
  3. CIMA
  4. CIMA Strategic
  5. F3 Discussions
  6. F3 Exam Topic 12 Question 110 Discussion

CIMA Financial Strategy F3 Question # 110 Topic 12 Discussion

 CIMA Discussions      Browse All Questions      Go to Exam Detail      Get Premium Access
 Previous
Next  

CIMA Financial Strategy F3 Question # 110 Topic 12 Discussion

F3 Exam Topic 12 Question 110 Discussion:
Question #: 110
Topic #: 12

Providers of debt finance often insist on covenants being entered into when providing debt finance for companies.

Agreement and adherence to the specific covenants is often a condition of the loan provided by the lender.

 

Which THREE of the following statements are true in respect of covenants?
A.

Covenants are entered into to penalise the company.  

B.

Covenants are entered into to give the lender added protection on the loan extended to the company.

C.

Covenants are entered into to impose financial discipline on the company.

D.

Covenants enable the lender to demand immediate repayment or to renegotiate terms if it is breached. 

E.

Covenants are entered into to eliminate the tax liability of the company.

Get Premium F3 Questions
Actual exam question for CIMA F3 exam by Arlo51626 at Dec 17, 2025, 1:15:42 PM

Contribute your Thoughts:


Chosen Answer:
This is a voting comment (?). It is better to Upvote an existing comment if you don't have anything to add.

Submit
 Previous
Next