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.
Correct Answer:
Verified
Correct Answer:
Verified
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