The Ability of OPEC Nations to Operate as a Successful

question 42

Multiple Choice

The ability of OPEC nations to operate as a successful cartel tend to decrease as

• A) the number of members of the cartel decline
• B) cost of production differences of the cartel members rise
• C) the demand for oil rises in the world market
• D) the availability of substitutes for OPEC oil falls

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Definitions:

Financial Statement

A formal record of the financial activities and position of a business, individual, or other entity, usually presented in a structured manner for a specific period.

Return On Total Assets

A profitability ratio that measures the profitability of total assets without considering how the assets are financed, computed as income plus interest expense divided by average total assets.

Profitability

A measure of how effectively a company generates profit from its revenues or assets.

Debt And Equity

The two major sources of financing for a company, where debt involves borrowing money to be repaid, and equity involves raising money by selling interests in the company.