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If you are considering lending to four prospects in the same industry and geographic region, which of the following would appear to be the riskiest?

If you are considering lending to four prospects in the same industry and geographic region, which of the following would appear to be the riskiest?

A. A company that spreads its sales over a wide distribution of clients in a variety of industries

B. A company that makes no more than 5% of its sales to any one customer

C. A company that makes over 40% of its sales to one customer, with the rest of its sales widely diversified

D. A company with sales spread over a wide geographic area offering limited opportunity for word-of-mouth recommendations from satisfied customers

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