Contracts Are Written Agreements (In Most Cases) That Obligate the Government

question 193

Multiple Choice

Contracts are written agreements (in most cases) that obligate the government to expenditure of money upon delivery of goods or performance of services. Following are various contract types available to ensure cost-effective delivery of services please choose the correct option:

• A) Fixed-price
• B) Firm fixed-price
• C) Cost-plus-award-fee
• D) A & C only.
• E) All of above.

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Definitions:

Cost of Equity

Represents the compensation the market requires to own equity in a company, reflecting the risk perceived by investors in holding that company's stocks.

Dividends

Disbursements issued by a company to its shareholders, apportioning some of the firm's profits among them.

Cost of Debt

The effective rate that a company pays on its borrowed funds from financial institutions or other sources.

Coupon Rate

A bond's interest rate per year, represented as a percentage of its face value.