The Most Common Reason Cited by Banks for Rejecting Small

question 153

Multiple Choice

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

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

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Definitions:

Poisson Distribution

A statistical distribution illustrating the likelihood of a specific count of occurrences within a definite time or space span, provided that these occurrences happen at a consistent, known rate and are independent of the duration since the preceding occurrence.

Hypergeometric Distribution

A probability distribution that describes the probability of k successes in n draws, without replacement, from a finite population containing a specific number of successes.

Computer Disks

Storage devices used to record and store digital information, such as hard drives, floppy disks, or optical discs.

Missing Pulses

Refers to the absence or loss of expected pulses in a sequence, often in the context of electronic or digital signals.