The _____ the term of the purchase agreement, the _____ firm fixed-price contracts will be acceptable to the supplier.
A)shorter….less likely
B)longer….more likely
C)longer….less likely
D)longer….same likelihood that
E)There is no relationship between contract term and acceptability to the supplier.

Question

Quizplus · Accepted Answer

The longer the term of the purchase agreement, the less likely firm fixed-price contracts will be acceptable to the supplier. This is because firm fixed-price contracts are more suitable for short-term agreements where the supplier can accurately estimate costs and minimize risk. With longer agreements, the supplier may face more uncertainty and potential changes in costs, making them more hesitant to accept a firm fixed-price contract.

The _____ the Term of the Purchase Agreement, the _____

The _ the Term of the Purchase Agreement, the _