The failure of a company to pay other debts,such as payables or other loans,when due is called

A) routine default.
B) non-default.
C) cross default.
D) compliance default.

Cross default refers to a situation where a company's failure to pay one debt results in the default of other debts as well. This happens when the company has multiple loans or credit facilities with a cross-default clause, meaning that the default in one loan triggers a default in all other loans. This can have serious consequences for the company's financial health and credit rating. A routine default simply means that a company failed to pay a debt on time, while a non-default means the company paid its debts as agreed upon. A compliance default refers to a breach of a specific loan covenant or requirement, such as a financial ratio or minimum liquidity level.