The Ratio of Reserves to Annual Production (R/P) Is an Indication

question 65

Multiple Choice

The ratio of reserves to annual production (R/P) is an indication of:

• A) how much oil each OPEC country is allowed to produce
• B) how much energy countries are allowed to hold in reserve
• C) the price/barrel as determined by the total output around the world
• D) the number of years the known reserves will last
• E) the effect of non-OPEC countries on total world production

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Definitions:

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Refers to the hierarchy within an organization, starting from the top with the board of directors or CEO, moving down through middle management, and reaching the operational employees at the bottom.

Centralization

The concentration of decision-making authority at the top levels of an organizational hierarchy.

Operational Decisions

Short-term choices made by management which are concerned with the day-to-day operations of a business.

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