Fixed-Price Contracts Are an Example of Transferring Risk from an Owner

question 96

True/False

Fixed-price contracts are an example of transferring risk from an owner to a contractor.

---

Definitions:

Total Assets

The sum of all financial and physical resources owned by a business.

Vertical Analysis

A financial statement analysis method where each line item is listed as a percentage of a base figure within the statement, facilitating comparisons.

Current Liabilities

Current liabilities are financial obligations a company owes and is expected to pay within a year.

Working Capital

The excess of the current assets of a business over its current liabilities.