All of the following statements are true of the risks of investing in an oil and gas limited partnership EXCEPT:
A) wells may not have sufficient reserves to return drilling costs.
B) development programs have higher risk than exploratory programs.
C) income programs have fewer tax benefits than exploratory programs.
D) development programs may involve acquisition of expensive leases.
Answer: B) development programs have higher risk than exploratory programs.
Business
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The Widget Company has a dependence on a supplier, the Acme Company. This dependence increases if
A) the Widget Company has few other sources of supply. B) the Acme Company has many other buyers. C) the cost for the Widget Company to suppliers is high. D) all of the above
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