The Most Common Reason Cited by Banks for Rejecting Small

question 82

Multiple Choice

The most common reason cited by banks for rejecting small business loans is:

• A)poor credit history.
• B)undercapitalization or too much debt.
• C)lack of collateral.
• D)insufficient cash flow or poor profitability.

---

Definitions:

Informal Mentoring

A non-structured, personal guidance relationship that develops naturally between a more experienced individual and a less experienced individual, sharing insights and advice for personal or professional development.

Collective Socialization

The process by which a group of individuals acquires the values, norms, and behaviors that are necessary for participation in a particular society or organization.

Salespeople

Individuals who sell goods or services to customers, typically working on behalf of a company.

Reality Shock

The feeling of surprise and disorientation experienced when entering a new environment, revealing a gap between expectations and reality.