Which One of the Following Is the Most Likely Reason

question 7

Multiple Choice

Which one of the following is the most likely reason why lenders would impose limits on total borrowing?

• A) Financial gearing is too low.
• B) Companies run out of suitable assets to offer as security against loans.
• C) Income gearing is too low.
• D) Financial risk is too high.

---

Definitions:

Margin of Error

Margin of error is a statistic expressing the amount of random sampling error in a survey's results, indicating a confidence interval within which the true population parameter is likely to lie.

Large Animals

Typically refers to animals of significant size, often considered in contexts such as veterinary science, agriculture, or wildlife studies.

Statistical Significance

A determination that a relationship between variables is caused by something other than chance at a specified confidence level.

True Proportion

The actual ratio or fraction of a population that possesses a particular attribute or characteristic.