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.

Question

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The Answer of 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.

Which One of the Following Is the Most Likely Reason