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Ex - Oil, a Venezuelan producer and exporter of oil recently signed a contract with Imp - Oil Inc., a Greek importer of oil. Both

Ex-Oil, a Venezuelan producer and exporter of oil recently signed a contract with Imp-Oil Inc., a Greek importer of oil. Both companies agreed to renegotiate the price on a quarterly basisas oil prices are set on the exchange. Furthermore, Ex-Oil allowed open account terms net 60 days as per industry standards.Prior to continuing, Ex-Oil conducts a thorough risk assessment on the Imp-Oil before bargaining about trade terms. Ex-Oil gained access to Imp-Oil's financial records, which it used todetermine the company's financial leverage. Ex-Oil discovered that the total debt amounted to EUR 350,000, and the total assets amounted to slightly over EUR 1 million. What should be Ex-Oil's next step?
A) Investigate alternative financing options for the deal, as Imp-Oil's total debt is too high proportional to its total assets.B) Discuss open unlimited account terms with Imp-Oil, as its total debt ratio suggests a very low level of risk.C) Compare this ratio with similar companies to determine if it is on par with industry ratios.D) Increase production in Venezuela, as Imp-Oil has a large amount of free capital and is likely to invest in future purchases.

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