Cost-Reimbursement Contracts Are Most Appropriate for Projects That

question 69

Multiple Choice

Cost-reimbursement contracts are most appropriate for projects that

• A) take less than one year to complete.
• B) are with customers that want a single payment date.
• C) are well defined and entail little risk.
• D) involve risk.

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Definitions:

Balanced Budget Amendment

A proposed amendment to a government's constitution that requires the annual budget to be balanced, so that expenditures do not exceed revenues.

Crowding-out

is an economic theory suggesting that increased government spending leads to a reduction in private sector spending, potentially due to higher interest rates.

Full Employment

A situation in an economy when all available labor resources are being used in the most efficient way possible, typically characterized by the absence of cyclical unemployment.

Annual Deficit

The shortfall in a government's income compared to its spending in a given fiscal year.