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C_TIOG20_65 · Question #65

(Topic 11) Why do oil companies enter into exchange agreements? Note: There are 3 correct answers to this question.

The correct answer is B. To minimize transportation costs C. To expand into markets where a company does not have infrastructure E. To take advantage of excess capacities. See the full explanation below for the reasoning.

Question

  • (Topic 11)

Why do oil companies enter into exchange agreements? Note: There are 3 correct answers to this question.

Options

  • ATo reduce the market price risk of crude oil imports
  • BTo minimize transportation costs
  • CTo expand into markets where a company does not have infrastructure
  • DTo share marketing expertise with business partners
  • ETo take advantage of excess capacities

How the community answered

(52 responses)
  • A
    6% (3)
  • B
    83% (43)
  • D
    12% (6)

Community Discussion

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Full C_TIOG20_65 Practice