The Possibility That a Business May Not Be Able to Repay

question 52

Multiple Choice

The possibility that a business may not be able to repay a bank loan because of an economic downturn is referred to as

• A) materiality risk.
• B) information risk.
• C) interest rate risk.
• D) business risk.

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Definitions:

Shifting Values

Refers to altering the numerical or categorical data points in a dataset, leading to changes in analysis outcomes.

σ

The symbol for standard deviation, a measure of the amount of variation or dispersion of a set of values.

Normal Distribution

A symmetric probability distribution centered on the mean, demonstrating that occurrences near the mean happen more often than those far from it.

Maximum Oxygen Uptake

The maximum rate at which an individual can consume oxygen during intense or maximal exercise, indicating cardiorespiratory fitness.