Which of the Following Contracts Would Be Considered a Long-Term

question 48

Multiple Choice

Which of the following contracts would be considered a long-term contract?

• A)A contract signed on September 1 with the U.S.Army to manufacture 20 planes estimated to be completed in 15 months (a single plane takes about one month to complete); the contractor currently has 12 planes in inventory.
• B)A contract to manufacture a telescope custom-made for space flight.The telescope will be the first of its kind.Estimated time of manufacturing is eight months.
• C)A three-year contract signed by JB Systems to provide the design work for the space shuttle.
• D)More than one of the above.

---

Definitions:

Pessimism

A tendency to see the worst aspect of things or believe that the worst will happen.

Experience Seeking

A psychological trait characterized by the pursuit of novel and intense experiences and sensations.

Sensation Seeking

A trait characterized by the search for experiences and feelings that are varied, novel, complex, and intense, and the willingness to take physical, social, legal, and financial risks for the sake of such experiences.

Good Sensation

A positive, often physical, feeling or experience that is pleasing to the senses.