Protective covenant in bond indenture restricts issuer’s:

Protective covenant in bond indenture restricts issuer’s:

Protective covenant in bond indenture restricts issuer’s:

A. Major asset acquisition/disposal without creditor consent

B. Daily operating cash collection process

C. Routine employee salary payment

D. Ordinary raw material procurement

Answer: A

Rationale: Debt covenant limits risky capital decision to protect creditor’s principal safety.