A fixed price contract is an example of
A) avoiding risk.
B) transferring risk.
C) accepting risk.
D) escalating risk.
E) mitigating risk.

Name: A fixed price contract is an example of A) avoiding risk. B) transferring risk. C) accepting risk. D) escalating risk. E) mitigating risk.
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Question

Quizplus · Accepted Answer

In a fixed price contract, the risk of cost overruns is transferred from the buyer to the seller, as the seller agrees to complete the project at a set price regardless of the actual costs incurred.

A Fixed Price Contract Is an Example of