If the Price of Oil Increases

question 4

Multiple Choice

If the price of oil increases:

• A) There is a movement along up the supply curve of oil
• B) There is a movement along down the supply curve of oil
• C) There is an upward shift in the supply curve of oil
• D) There is a downward shift in the supply curve of oil

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Definitions:

Capital Budgeting

The process a business undertakes to evaluate potential major projects or investments, analyzing the cash inflows and outflows to determine whether the returns meet a sufficient target benchmark.

Capital Structure

The mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity which finances its overall operations and growth.

Net Working Capital

It represents the disparity between an organization's short-term holdings and debts, signifying the state of its financial wellbeing and efficiency in operations.

Dealer

An individual or firm in the financial markets that buys and sells securities for their own account, rather than on behalf of clients.