Soal Minggu ke 7 dari Chapter 10 1. What are debt covenants, and why are they used? 2. Explain the three types of agency costs and their relationships to each other in the context of: (a) debt contracts (b) equity contracts. 3. In the context of positive accounting theory, political costs can reduce the value of firms significantly. (a) Give examples of how firms can be exposed to political costs. (b) Give examples of how a firm’s exposure to political costs can influence the nature and/or content of the firm’s annual report, particularly in relation to its accounting information. 4. Positive accounting theory has been criticised by many. Outline the criticisms and comment on their validity.