Which of the Following Is True of Lump-Sum Contracts

question 22

Multiple Choice

Which of the following is true of lump-sum contracts?

• A)They incur a high degree of risk for the buyer. 
• B)They involve a fixed total price for a well-defined product or service. 
• C)They consist of a fee based on the satisfaction of subjective performance criteria. 
• D)They are also known as cost-reimbursable contracts.

---

Definitions:

Negotiated

The process of discussing to reach an agreement or compromise between parties with differing interests or positions.

Roles

Roles are the functions or positions that individuals occupy in a social, professional, or organizational context, defining their responsibilities and expectations.

In-group

A social group to which a person psychologically identifies as being a member, contrasting with an "out-group" which one does not identify with.

Negotiating

The process of discussing and reaching a mutually agreeable outcome or settlement between two or more parties with different preferences or interests.