With a fixed-price contract,the greatest risk is typically assumed by:
A) the purchasing company.
B) the vendor.
C) both the purchasing company and the vendor.
D) neither the purchasing company nor the vendor.

Question

Quizplus · Accepted Answer

In a fixed-price contract, the vendor agrees to deliver the project or product for a set price agreed upon at the beginning of the contract. Any additional costs incurred during the project are typically borne by the vendor. Therefore, the greatest risk is assumed by the vendor to deliver the project within the fixed budget. The purchasing company is not generally at risk for additional costs.

With a Fixed-Price Contract,the Greatest Risk Is Typically Assumed By