In a Firm Fixed Price Contract If Market Prices ____

question 64

Multiple Choice

In a firm fixed price contract if market prices ____ the stated contract price due to outside factors,such as competition,changes in technology,or raw material prices,the ____ assumes the risk or financial loss.

• A) rise above....purchaser
• B) stay the same....seller
• C) stay the same....purchaser
• D) fall below....purchaser
• E) None of these choices.

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Definitions:

Commencement

Commencement refers to the beginning or start of something, often used in legal contexts to denote the start of legal proceedings or the operative period of a contract.

Trustee

An individual or organization that holds or manages property or assets for the benefit of another party.

Chapter 11

Chapter 11 refers to a section of the United States Bankruptcy Code that permits reorganization under the bankruptcy laws of the United States.

Chapter 7

A provision under the US Bankruptcy Code for the process of liquidation, where a debtor's assets are sold to pay off creditors.