If the Delivery Date Is Some Months or Years Away

question 13

Multiple Choice

If the delivery date is some months or years away and if there is substantial chance of price escalation,a supplier may feel that there is far too much risk of loss to agree to sell under a:

• A)firm-fixed-price plus incentive fee (FFPIF).
• B)firm-fixed-price (FFP).
• C)cost-no-fee (CNF).
• D)cost-plus-fixed-fee (CPFF).
• E)cost-plus-incentive-fee (CPIF).

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Definitions:

Private Placements

Private placements involve the sale of securities to a relatively small number of select investors as a way of raising capital, without the need to register with regulatory bodies.

Electronic Trading

The use of computer systems and technology to facilitate trading in financial markets without the need for physical trading floors.

General Partnership

A business partnership where all partners share unlimited personal liability for the business's debts and obligations.

Taxed

To impose a financial charge or levy upon an individual or entity by a governmental organization.