posted 14months ago by pin
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Contracts | Procurement Management
Which of the following statements concerning contract type is correct?
a. a fixed price contract contains the most risk for the buyer.
b. cost reimbursable contracts offer sellers the highest profit potential.
c. lump sum contracts offer sellers the greatest profit potential.
d. unit price contracts are illegal in many jurisdictions.
george (10¾months ago):
I think it's B. Other options are not correct:
A: a fixed price contract is the most risky for the seller, not the buyer.
B: cost reimbursable contract guarantees compensation of all costs plus an agreed profit margin (it's correct)
C: lump sum contract doesn't guarantee profit at all, just a revenue
D: no type of contract is illegal
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