OPEC Is a ________ That Has Been Able to Maintain

question 59

Multiple Choice

OPEC is a ________ that has been able to maintain high oil prices for ________ periods of time.

• A) cartel; long
• B) monopoly; long
• C) cartel; not very long
• D) monopoly; not very long

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Definitions:

Leverage Levels

The degree to which a business or investor is utilizing borrowed money.

EPS

Earnings Per Share, a company's profit divided by its number of outstanding shares of common stock, indicating how much money each share earns.

EBIT

The measure known as Earnings Before Interest and Taxes determines a company's profit levels by excluding interest and tax-related expenses.

Financial Leverage

The use of borrowed funds with the intent to increase the return on equity.