Which of the Following Terms Best Describes Extra Money in the Project

question 25

Multiple Choice

Which of the following terms best describes extra money in the project budget to be used if necessary - usually if a risk event occurs? 

• A) reserve 
• B) insurance 
• C) padding 
• D) discretionary fund

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Definitions:

Potential Investors

Individuals or institutions with an interest or capacity to allocate capital into businesses, projects, or securities, expecting future financial returns.

Pricing Information

Data or details regarding the price at which goods or services are bought and sold.

Direct Costs

Expenses that can be directly attributed to the production of specific goods or services.

Underpricing

The phenomenon where new securities, such as stocks or bonds, are priced below their true market value at the initial offering, often leading to an immediate increase in their value when traded.