Question
__ may seek further protection through the use of __ The immediate payment of the loan can be demanded in the event of a material breach. (Select the missing pair of words below to complete the sentence) Lenders and loan covenants Investors and shares Shareholders and dividends Managers and compensation
Answer
4.1
(235 Votes)
Idris
Elite · Tutor for 8 years
Answer
'Lenders and loan covenants'
Explanation
## Step1: This task involves filling the correct set of words in a sentence, based on context. The context suggests an entity that can seek further protection when lending funds, and gives the course of action should there be a material breach.## Step2:Among the offered choices, Lenders is the group that directly safeguards their investment via loan covenants. Loan covenants are terms or conditions set by lenders to safeguard their investment. In case of material breach of these terms, lenders may demand immediate repayment of the loan. ## Step3: This logic doesn't apply to the other options: 'Investors and shares', 'Shareholders and dividends', and 'Managers and compensation'. While these pairs involve financial transactions, they are not inherently associated with being able to 'demand the immediate payment of the loan' if a material breach is specified.### The appropriate pair to complete the text is 'Lenders and loan covenants'.