Based on your research conducted in the e-Activity, assess the
key components of the loan covenant typically used in business loans.
Indicate the necessity of each covenant and the likelihood that default
will be prevented. Suggest whether or not you agree or disagree with
lenders using the covenant approach for protection. Provide a rationale
for your position.
Create an alternative strategy for lenders
to use to protect themselves for loan default. Indicate how this
approach would be more desirable than debt covenants. Provide support
for your strategy.
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