Normally a performance bond, depending upon the state, only stipulates that the contractor will guarantee the work for a certain period of time. Answer: D (8)Which contract type places the most risk on the seller? 1. Cost plus percentage fee 2. Cost plus incentive fee 3. Cost plus fixed fee 4. Fixed price plus incentive fee 5. Firm fixed price

Normally a performance bond, depending upon the state, only stipulates that the contractor will

guarantee the work for a certain period of time. 

Answer: D 

(8)Which contract type places the most risk on the seller?

1. Cost plus percentage fee 

2. Cost plus incentive fee 

3. Cost plus fixed fee 

4. Fixed price plus incentive fee 

5. Firm fixed price
by

1 Answer

Answer :

5. Firm fixed price
by

Related questions

)A new project was initiated that involves new technology and subsequently has never been done before. What type of contract would to owner want to issue to reduce or eliminate as much risk as possible. 1. Firm fixed price 2. Cost plus fix fee 3. Cost plus incentive fee 4. Lump sum 5. A and D

Description : )A new project was initiated that involves new technology and subsequently has never been  done before. What type of contract would to owner want to issue to reduce or eliminate as much  risk as possible. 1. Firm ... 2. Cost plus fix fee  3. Cost plus incentive fee  4. Lump sum  5. A and D

Last Answer : 5. A and D

Which of the following type of contracts is most preferable to the c4. B and Contractor doing the project work? 1. Cost plus fixed fee 2. Fixed price 3. Fixed price plus incentive free

Description : Which of the following type of contracts is most preferable to the contractor doing the project  work? 1. Cost plus fixed fee  2. Fixed price  3. Fixed price plus incentive free 4. B and C

Last Answer : 1. Cost plus fixed fee

A Unit Price (UP) contract provides: 1. a reimbursement of allowable costs plus a fixed fee which is paid proportionately as the contract progresses 2. a reimbursement of allowable cost of services performed plus an agreed upon percentage of the estimated cost as profit 3. the supplier with a fixed price for delivered performance plus a predetermined fee for superior performance 4. a fixed price where the supplier agrees to furnish goods and services at unit rates and the final price is dependent on the quantities needed to carry out the work.

Description : A Unit Price (UP) contract provides: 1. a reimbursement of allowable costs plus a fixed fee which is paid proportionately as the  contract progresses  2. a reimbursement of allowable cost of services ... unit rates and the  final price is dependent on the quantities needed to carry out the work.

Last Answer : 4. a fixed price where the supplier agrees to furnish goods and services at unit rates and the  final price is dependent on the quantities needed to carry out the work

)The fixed price contract is advantageous to the buyer because it: 1. requires extremely well defined specifications 2. requires formal procedures for scope changes 3. contractor assumes financial and technical risk 4. has a known cost

Description : )The fixed price contract is advantageous to the buyer because it: 1. requires extremely well defined specifications  2. requires formal procedures for scope changes  3. contractor assumes financial and technical risk  4. has a known cost

Last Answer : 3. contractor assumes financial and technical risk

Sam Consultancy is planning to buy ten desktops for $1500 each from a leading computer store. Which type of contract will get signed in this case? A. Purchase Order B. Cost plus Fee C. Fixed cost D. Time and Material

Description : Sam Consultancy is planning to buy ten desktops for $1500 each from a leading computer store. Which type of contract will get signed in this case? A. Purchase Order B. Cost plus Fee C. Fixed cost D. Time and Material

Last Answer : A. Purchase Order

.Sam Consultancy is planning to buy ten desktops for $1500 each from a leading computer store. Which type of contract will get signed in this case? A. Purchase Order B. Cost plus Fee C. Fixed cost D. Time and Material

Description : .Sam Consultancy is planning to buy ten desktops for $1500 each from a leading computer  store. Which type of contract will get signed in this case? A. Purchase Order B. Cost plus Fee C. Fixed cost D. Time and Material

Last Answer : A. Purchase Order

A preferred provider organization is described as a a) Business arrangement between hospitals and physicians. PPO’s usually contract to provide health care to subscribers, usually businesses, for a negotiated fee that often is discounted. b) Prepaid group health practice system. A prepaid group health practice system is termed a health maintenance organization. c) Limited insurance program. Insurance is a cost payment system of shared risk, not a health care delivery system. d) Health care savings account program. A health care savings account program is an incentive program to consumers, not a health care delivery system.

Description : A preferred provider organization is described as a a) Business arrangement between hospitals and physicians. PPO's usually contract to provide health care to subscribers, usually businesses, for a ... savings account program is an incentive program to consumers, not a health care delivery system.

Last Answer : a) Business arrangement between hospitals and physicians. PPO’s usually contract to provide health care to subscribers, usually businesses, for a negotiated fee that often is discounted.

The contractor provides the financing and is paid an agreed fraction of actual savings achieved. This payment is used to pay down the debt costs of equipment and/or services. This is known as a) traditional contract b) extended technical guarantee/service c) performance Contract d) shared savings performance contrac

Description : The contractor provides the financing and is paid an agreed fraction of actual savings  achieved. This payment is used to pay down the debt costs of equipment and/or services.  ... contract b) extended technical guarantee/service c) performance Contract d) shared savings performance contrac

Last Answer : d) shared savings performance contrac

Which of the following statements is correct for a conservative financing policy for a firm relative to a former aggressive policy? A. The firm uses long-term financing to finance all fixed and current assets. B. The firm will see an increase in its expected profits. C. The firm will see an increase in its risk profile. D. The firm will increase its dividends per share (DPS) this period.

Description : Which of the following statements is correct for a conservative financing policy for a firm  relative to a former aggressive policy? A. The firm uses long-term financing to finance all fixed and current ... its risk profile. D. The firm will increase its dividends per share (DPS) this period.

Last Answer : B. The firm will see an increase in its expected profits.

A performance bond should always provide what part of the contract value? 1. 10 percent 2. 25 percent 3. 50 percent 4. 100 percent

Description : A performance bond should always provide what part of the contract value? 1. 10 percent  2. 25 percent  3. 50 percent  4. 100 percent

Last Answer : 4. 100 percent

) One of the initial project documents, issued by senior management, which outlines the authority of the project manager, is called Project charter. As a seller, what other document can be used in this place: 1. Work breakdown structure 2. Project scope 3. Contract 4. Internal memo

Description : ) One of the initial project documents, issued by senior management, which outlines the  authority of the project manager, is called Project charter. As a seller, what other document can  be used in this place: 1. Work breakdown structure  2. Project scope  3. Contract  4. Internal memo

Last Answer : 3. Contract

During the planning development process, at times it is necessary to make certain assumptions to enhance the project plan when the data is not available. In regard to making those assumptions, which one of the following is most true for project planning purposes? 1. The assumptions will be considered as true, real, or certain. 2. By making the assumption, it tends to reduce the project risk. 3. Project assumptions are based upon historical data used for the project. 4. Senior management predefines the budget constraints.

Description : During the planning development process, at times it is necessary to make certain assumptions to enhance the project plan when the data is not available. In regard to making those assumptions, ... upon historical data used for the project.  4. Senior management predefines the budget constraints.

Last Answer : 1. The assumptions will be considered as true, real, or certain.

Which of the following statements is true of Insured Asset Allocation? A. It is aimed at benefiting from short-term under pricing and over pricing of assets. B. In this strategy the risk tolerance of the investor are ignored. C. In this strategy long-term predictions regarding the capital markets are used. D. In this strategy the asset mix is held constant. E. It is a strategy aimed at achieving the objectives of the investor without depending on market timing.

Description : Which of the following statements is true of Insured Asset Allocation? A. It is aimed at benefiting from short-term under pricing and over pricing of assets. B. In this strategy the risk ... . It is a strategy aimed at achieving the objectives of the investor without depending on market timing

Last Answer : E. It is a strategy aimed at achieving the objectives of the investor without depending on market timing.

To the nearest rupee, what is the net present value of a replacement project whose cash flows are -Rs.104,000; Rs.34,444; Rs.39,877; Rs.25,000; and Rs.52,800 for years 0 through 4, respectively? The firm has decided to assume that the appropriate cost of capital is 10% and the appropriate risk-free rate is 6%. A. Rs.15,115 B. Rs.26,798 C. Rs.33,346 D. Rs.48,121

Description : To the nearest rupee, what is the net present value of a replacement project whose cash flows are -Rs.104,000; Rs.34,444; Rs.39,877; Rs.25,000; and Rs.52,800 for years 0 through 4, respectively? The firm has decided to ... -free rate is 6%. A. Rs.15,115 B. Rs.26,798 C. Rs.33,346 D. Rs.48,121

Last Answer : C. Rs.33,346

Some organizations have escalator clause in their labour agreements. What does this clause provide for ? (A) Automatic increase in wage/salary depending on seniority (B) Wage increase depending on output per day by the worker (C) Automatic increase in wage/salary depending upon increase in price index (D) Automatic increase in wage/salary depending on increase in profits of the firm

Description : Some organizations have escalator clause in their labour agreements. What does this clause provide for ? (A) Automatic increase in wage/salary depending on seniority (B) Wage increase depending on output ... index (D) Automatic increase in wage/salary depending on increase in profits of the firm

Last Answer : Answer: Automatic increase in wage/salary depending on increase in profits of the firm

A firm that bases its price on how it thinks the competitors will price, rather than on its own costs or demand, to win a contract is most likely using A. Going-rate pricing B. Cost-plus pricing C. Perceived-value pricing D. Sealed-bid pricing

Description : A firm that bases its price on how it thinks the competitors will price, rather than on its own costs or demand, to win a contract is most likely using A. Going-rate pricing B. Cost-plus pricing C. Perceived-value pricing D. Sealed-bid pricing

Last Answer : C. Perceived-value pricing

Amount of work completed to date compared with planned in the Earned Value Management method is A. Schedule Performance Index B. Cost Performance Index C. Percentage Complete D .Percentage Spent

Description : Amount of work completed to date compared with planned in the Earned Value  Management method is  A. Schedule Performance Index  B. Cost Performance Index  C. Percentage Complete  D .Percentage Spent

Last Answer : C. Percentage Complete

Fill in the blanks. It is during the ______________ phase that the decision should be made regarding whether the project should continue. During this phase, ____________ must be considered and weighed against the potential benefit of the project’s success. Select one: a. completion, cost b. closeout, resources c. execution, performance d. planning, timing e. initiation, risk

Description : Fill in the blanks. It is during the ______________ phase that the decision should be  made regarding whether the project should continue. During this phase, ____________  must be considered and weighed ... . closeout, resources c. execution, performance d. planning, timing e. initiation, risk

Last Answer : e. initiation, risk

Considers the total cost of ownership, or development plus support costs, for a project. A. Learning Curve Theory B. Life Cycle Costing C. Parametric Modeling D. Rate of Performance

Description : Considers the total cost of ownership, or development plus support costs, for a project. A. Learning Curve Theory B. Life Cycle Costing C. Parametric Modeling D. Rate of Performance

Last Answer : B. Life Cycle Costing

Which risk is connected to the circumstance outside the project that may influence the scope of work and the performance of the organization? A.Operational Risk B.Financial Risk C.Strategic Risk D.Contextual Risk

Description : Which risk is connected to the circumstance outside the project that may influence the  scope of work and the performance of the organization?  A.Operational Risk  B.Financial Risk  C.Strategic Risk  D.Contextual Risk

Last Answer : D.Contextual Risk

The particular task performance in CPM is known A.Dummy B.Event C.Activity D.Contract.

Description : The particular task performance in CPM is known  A.Dummy  B.Event  C.Activity  D.Contract.

Last Answer : C.Activity

The contract administration function includes: 1. funding management 2. managing relationships and interfaces 3. performance control 4. all of the above

Description : The contract administration function includes: 1. funding management  2. managing relationships and interfaces  3. performance control  4. all of the above

Last Answer : 4. all of the above

The CPA should not undertake an engagement if his fee is to be based upon a. A percentage of audited net income. b. Per diem rates plus expenses. c. The findings of a tax authority. d. The complexity of the service rendered

Description : The CPA should not undertake an engagement if his fee is to be based upon a. A percentage of audited net income. b. Per diem rates plus expenses. c. The findings of a tax authority. d. The complexity of the service rendered

Last Answer : A percentage of audited net income

Risk, as it relates to working capital, means that there is jeopardy to the firm for not maintaining sufficient current assets to . A. meet its cash obligations as they occur and take advantage of prompt payment B. discounts C. support the proper level of sales and take prompt payment discounts D. maintain current and acid-test ratios at or above industry norms E. meet its cash obligations as they occur and support the proper level of

Description : Risk, as it relates to working capital, means that there is jeopardy to the firm for not  maintaining sufficient current assets to . A. meet its cash obligations as they occur and take advantage ... above industry norms E. meet its cash obligations as they occur and support the proper level of

Last Answer : D. maintain current and acid-test ratios at or above industry norms

In deciding the optimal level of current assets for the firm, management is confronted with . A. a trade-off between profitability and risk B. a trade-off between liquidity and risk C. a trade-off between equity and debt D. a trade-off between short-term versus long-term borrowing

Description : In deciding the optimal level of current assets for the firm, management is confronted with  . A. a trade-off between profitability and risk B. a trade-off between liquidity and risk C. a trade-off between equity and debt D. a trade-off between short-term versus long-term borrowing

Last Answer : A. a trade-off between profitability and risk

Which of the following statement(s) is/are true about a Project? I. It brings change II. It has risk III. The outcome is certain (A) I only (B) II only (C) I and II only (D) I, II, and III

Description : Which of the following statement(s) is/are true about a Project? I. It brings change II. It has risk III. The outcome is certain (A) I only (B) II only (C) I and II only (D) I, II, and III

Last Answer : (C) I and II only

How can a firm provide a margin of safety if it cannot borrow on short notice to meet its needs? A. Maintain a low level of current assets (especially cash and marketable securities). B. Shorten the maturity schedule of financing. C. Increasing the level of fixed assets (especially plant and equipmentD. Lengthening the maturity schedule of financing

Description : How can a firm provide a margin of safety if it cannot borrow on short notice to meet its  needs? A. Maintain a low level of current assets (especially cash and marketable securities) ... the level of fixed assets (especially plant and equipment D. Lengthening the maturity schedule of financing

Last Answer : D. Lengthening the maturity schedule of financing

The tracking error of an optimized portfolio can be expressed in terms of the of the portfolio and thus reveal . A. return; portfolio performance B. total risk; portfolio performance C. beta; portfolio performance D. beta; benchmark risk E. relative return; benchmark risk

Description : The tracking error of an optimized portfolio can be expressed in terms of the  of the portfolio and thus reveal . A. return; portfolio performance B. total risk; portfolio performance C. beta; portfolio performance D. beta; benchmark risk E. relative return; benchmark risk

Last Answer : D. beta; benchmark risk

Which of the following is/are true if a firm has a required rate of return equal to the ROE? I. The amount of earnings retained by the firm does not affect market price or the P/E. II. The firm can increase market price and P/E by increasing the growth rate. III. The P/E ratio is inversely proportional to the ROE of the firm. A. Only (I) above B. Both (I) and (II) above C. Both (I) and (III) above D. Both (II) and (III) above E. All (I), (II) and (III) above

Description : Which of the following is/are true if a firm has a required rate of return equal to the ROE? I. The amount of earnings retained by the firm does not affect market price or the P/E. II. The firm can increase market ... (III) above D. Both (II) and (III) above E. All (I), (II) and (III) above

Last Answer : E. All (I), (II) and (III) above

On ebay, what is the purchaser's incentive to give feedback on a seller?

Description : On ebay, what is the purchaser's incentive to give feedback on a seller?

Last Answer : Don’t buyers get feedback too? It would seem that they would leave positive feedback to a good seller and in return perhaps get positive feedback as a buyer.. so that people will trust them as customers. It’s been a while since I’ve been on ebay.. but that’s how it was back in the day.

If generally interest rates in nation increase, a corporate bond with a fixed interest rate will usually A. increase in value B. remain unchanged C. decrease in value. D. be returned to corporation.

Description : If generally interest rates in nation increase, a corporate bond with a fixed interest rate will usually A. increase in value B. remain unchanged C. decrease in value. D. be returned to corporation.

Last Answer : C. decrease in value.

Assertion : All muscle follow " all or none" principle. Reason : All muscles contract either fully or do not contract at all depending upon the thresh

Description : Assertion : All muscle follow " all or none" principle. Reason : All muscles contract either fully or do not contract at all depending upon the thresh

Last Answer : Assertion : All muscle follow " all or none" principle. Reason : All muscles contract either fully or ... . D. If both Assertion and Reason are false.

Political unrest, budget overruns, size and complexity of the project Answer: B (8)Decision trees are best used for : 1. Determining the interaction of the amount at stake and the expected value 2. Association of the probabilities with the risk events 3. An illustration of how to see the interactions between decisions and the associated events 4. A flow chart which determines the standard deviation of the risk event

Description : Political unrest, budget overruns, size and complexity of the project  Answer: B  (8)Decision trees are best used for : 1. Determining the interaction of the amount at stake and the expected ... and the associated events  4. A flow chart which determines the standard deviation of the risk event

Last Answer : 3. An illustration of how to see the interactions between decisions and the associated events

When operating under a single-period capital-rationing constraint, you may first want to try selecting projects by descending order of their in order to give yourself the best chance to select the mix of projects that adds most to firm value. A. profitability index (PI) B. net present value (NPV) C. internal rate of return (IRR) D. payback period (PBP)

Description : When operating under a single-period capital-rationing constraint, you may first want to try selecting projects by descending order of their in order to give yourself the best chance to select the mix of ... net present value (NPV) C. internal rate of return (IRR) D. payback period (PBP)

Last Answer : B. net present value (NPV)

When operating under a single-period capital-rationing constraint, you may first want to try selecting projects by descending order of their in order to give yourself the best chance to select the mix of projects that adds most to firm value. A. profitability index (PI) B. net present value (NPV) C. internal rate of return (IRR) D. payback period (PBP)

Description : When operating under a single-period capital-rationing constraint, you may first want to try selecting projects by descending order of their in order to give yourself the best chance to select the mix of ... net present value (NPV) C. internal rate of return (IRR) D. payback period (PBP)

Last Answer : B. net present value (NPV)

Your upcoming project includes project team members from a foreign country. To make certain that cultural differences don’t interfere with team performance, thereby affecting the success of the project, your first course of action is to do which of the following? A. Provide diversity training to all the team members. B. Collocate the project team. C. Perform team-building exercises. D. Inform the team members of the organization’s rules and standards.

Description : Your upcoming project includes project team members from a foreign country. To  make certain that cultural differences don't interfere with team performance, thereby  affecting the success of the project ... exercises.  D. Inform the team members of the organization's rules and standards.

Last Answer : A. Provide diversity training to all the team members.

The Constitution allows preventive detention but stipulates: (1) that no one should be detained beyond three months unless an Advisory Board authorizes detention beyond that period (2) that the grounds for detention should be conveyed to the detenu before arresting him (3) that the detenu must be produced before the nearest magistrate within a period of 24 hours of his arrest (4) All of the above

Description : The Constitution allows preventive detention but stipulates: (1) that no one should be detained beyond three months unless an Advisory Board authorizes detention beyond that period (2) that the grounds for ... nearest magistrate within a period of 24 hours of his arrest (4) All of the above

Last Answer : (1) that no one should be detained beyond three months unless an Advisory Board authorises detention beyond that period Explanation: Article 22 (4) provides that no law providing for preventive detention ... said period of 3 months that there is in it's opinion sufficient cause for such detention.

The individual or organisation who wants a product to be developed is known as the: a) Developer (b) User (c)Contractor (d) Initiator (e) Client

Description : The individual or organisation who wants a product to be  developed is known as the: a) Developer (b) User (c)Contractor (d) Initiator (e) Client

Last Answer : (e) Client.

Mobilization advance up to 10% of the cost of work is given to a contractor (A) On commencement of work at site for payment of loan taken by him (B) For the purchase of construction materials (C) For the payment of advances to labour and other staff (D) For all activities required to start the work at site on finalization of the contract document

Description : Mobilization advance up to 10% of the cost of work is given to a contractor (A) On commencement of work at site for payment of loan taken by him (B) For the purchase of construction ... staff (D) For all activities required to start the work at site on finalization of the contract document

Last Answer : (D) For all activities required to start the work at site on finalization of the contract document

The theory that individuals act depending upon their evaluation of whether their effort will lead to good performance, whether good performance will be followed by a reward, and whether that reward is attractive to them, is called: (a) Equity Theory ; (b) Expectancy Theory ; (c) Empirical Theory ; (d) Outcome Theory

Description : The theory that individuals act depending upon their evaluation of whether their effort will lead to good performance, whether good performance will be followed by a reward, and whether that reward is attractive ... Equity Theory ; (b) Expectancy Theory ; (c) Empirical Theory ; (d) Outcome Theory

Last Answer : (b) Expectancy Theory ;

A cost performance index (CPI) of 0.89 means: A. At this time, we expect the total project to cost 89 percent more than planned B. When the project is completed we will have spent 89 percent more than planned C. The project is only progressing at 89 percent of the rate planned D. The project is only getting 89 cents out of every dollar invested

Description : A cost performance index (CPI) of 0.89 means:  A. At this time, we expect the total project to cost 89 percent more than planned  B. When the project is completed we will have spent 89 ... at 89 percent of the rate planned  D. The project is only getting 89 cents out of every dollar invested

Last Answer : D. The project is only getting 89 cents out of every dollar invested

A seller mixes 30% water to milk and then he sells the whole mixture at the price of milk. If the cost price of water be 50% of the cost price of milk, what is the net profit percentage?

Description : A seller mixes 30% water to milk and then he sells the whole mixture at the price of milk. If the cost price of water be 50% of the cost price of milk, what is the net profit percentage?

Last Answer :  Let CP of 1litre of milk = Rs.200 & CP of 1litre of water = Rs. 100 CP of solution=140+30=170 Sp of 1litre solution= 200 Profit%= (200-170)*100/170 = 17.64%

Identify the incorrect statement in connection with working capital management. A. Long-term funds are more expensive than short-term funds but also riskier B. The objectives of working capital management are profitability and liquidity C. Permanent current assets should be financed from long-term sources if a moderate or matching policy is adopted D. Conservative financing policies use short-term funds to finance only part of fluctuating current assets E. Aggressive financing policies increase profitability at the cost of higher risk

Description : Identify the incorrect statement in connection with working capital management. A. Long-term funds are more expensive than short-term funds but also riskier B. The objectives of ... fluctuating current assets E. Aggressive financing policies increase profitability at the cost of higher risk

Last Answer : A. Long-term funds are more expensive than short-term funds but also riskier

A project with total budget cost of 30 crores is scheduled to be completed in 80 weeks. A periodic review was carried out at end of 60 weeks and results are as given: Budgeted cost of work performed (EV) = 17 crores Actual Cost of work performed (AC = 19 crores Budgeted cost of work scheduled (PV) = 21 croresWhat is the cost performance index? A.0.895 B.0.81 C.0.90 D.1.12

Description :  A project with total budget cost of 30 crores is scheduled to be completed in 80 weeks. A periodic review was carried out at end of 60 weeks and results are as given:  Budgeted cost of work performed (EV) = 17 ... crores What is the cost performance index?  A.0.895  B.0.81  C.0.90  D.1.12

Last Answer : A.0.895

The thermal efficiency of a diesel cycle having fixed compression ratio with increase in cut-off ratio will a. increase b. decrease c. independent d. increase or decrease depending upon other factors

Description : The thermal efficiency of a diesel cycle having fixed compression ratio with increase in cut-off ratio will a. increase b. decrease c. independent d. increase or decrease depending upon other factors

Last Answer : ANSWER b. decrease