Question

Why would a bank be reluctant to loan money to a business that already had a lot of debt?

(1 point)
Responses

The loan will likely have a high interest rate.

The loan will likely have a high interest rate.

Debt is a sign that the business is about to fail.

Debt is a sign that the business is about to fail.

A business with a lot of debt may have trouble paying it back.

A business with a lot of debt may have trouble paying it back.

Business are only allowed to a certain amount of debt at once.

Answers

GPT-4o mini
A business with a lot of debt may have trouble paying it back.

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