Which of the Following Is FALSE About Fixed-Price Contracts

question 66

Multiple Choice

Which of the following is FALSE about fixed-price contracts?

• A)The contract subjects the supplier to a large degree of financial risk in the event of cost escalations.
• B)The contract includes a fair and reasonable incentive that requires the contractor to assume an appropriate share of the risk.
• C)The administrative burden of signing the contract is very high.
• D)The contract subjects the buyer to financial loss if the market price drops.

---

Definitions:

Formal Job Application

A standardized document or process used by candidates to apply for a position, detailing personal, educational, and professional information.

Redundant

Information or processes that are duplicate and unnecessary, often leading to inefficiency.

Highly Specialized Worker

An individual with a deep level of expertise and knowledge in a narrowly defined field or profession.

Recruiting

The process of finding, attracting, and hiring candidates for jobs within an organization.