A microloan would most likely support which of the following projects?

• A. Building a large manufacturing plant
• B. Starting a small local bakery
• C. Funding a national highway construction
• D. Acquiring a multinational corporation

Answer: (B)

Verified step by step guidance

1. Understand the concept of a microloan: Microloans are small loans typically given to individuals or small businesses that do not have access to traditional banking services. They are designed to support small-scale projects or startups.
2. Analyze the scale and nature of each project option: Building a large manufacturing plant, funding a national highway construction, and acquiring a multinational corporation are all large-scale projects requiring substantial capital investment.
3. Recognize that microloans are not suitable for large infrastructure or corporate acquisitions due to their limited loan size and focus on small businesses.
4. Identify that starting a small local bakery fits the typical profile of a microloan recipient because it is a small-scale, local business that can benefit from a relatively small amount of capital.
5. Conclude that among the options, the project most likely supported by a microloan is starting a small local bakery.