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The following are functional objectives guiding most covenants: full disclosure of information, preservation of net worth, maintenance of asset quality, maintenance of adequate cash flow, control of growth, control cash loans co memphis tn management, assurance of legal existence and concept of going concern, provision for lender profit or program goals.
Current Asset Assets that will normally be turned into cash within a year. Current Liability Liability that will normally be repaid within a year. Current Ratio Current assets divided by current liabilities -- a measure of liquidity. Generally, the higher the ratio, the greater the "cushion" between current obligations and a firm's ability to meet them. Debt An amount owed for funds borrowed.
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