Banks prefer to make loans to business start-ups because although the risk level is higher, the potential returns are also much higher.

Name: Banks prefer to make loans to business start-ups because although the risk level is higher, the potential returns are also much higher.
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Question

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Banks typically prefer lending to established businesses over start-ups due to the higher risk associated with new ventures, which often lack a proven track record and collateral.

Banks Prefer to Make Loans to Business Start-Ups Because Although