The Predictability of the Project's Revenue Stream Is Essential in Securing

question 53

Multiple Choice

The predictability of the project's revenue stream is essential in securing project financing. Which of the following is NOT a typical contract provisions that are intended to assure adequate cash flow?

• A) quantity and quality of the project's output
• B) a pricing formula
• C) circumstances that permit changes in the contract
• D) fronting loan

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Definitions:

Absolute Advantage

The capability of one entity to produce more of a good, product, or service with the same amount of resources than another.

Sweatshop Labor

Work done in very poor conditions for low pay, often in factories that make fast fashion, electronics, and other consumer goods.

Pauper Labor Fallacy

The incorrect belief that importing goods from countries with lower wage levels harms the economy of the importing country.

Opportunity Cost

Giving up the chance for gain from multiple possibilities by choosing a specific alternative.