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Kaden and Elizabeth Run a Small Farm Stand on Their

Question 33

Multiple Choice

Kaden and Elizabeth run a small farm stand on their property, selling vegetables, fruits, and plants to support themselves. During a particularly bad growing season, they try to get financing from a small rural bank in their community but they do not get it. What is the most likely reason for this?


A) The small rural bank believed that their business lacked the flexibility to adapt to changing market demands.
B) The bank required a huge sum of money to compete in the mass market.
C) Government regulations do not permit financing small rural businesses.
D) The small rural bank lacked the necessary financial expertise to counter the risks involved with small-business loans.
E) Rural communities have various business guidelines that prohibit rural banks from financing small businesses.

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