A company evaluates projects based on Project Type (Fixed-Price or Cost-Plus) and Team Size (Small or Large). Fixed-Price projects profit more in stable markets but risk more in volatile markets. Cost-Plus projects have moderate profit and lower risk in volatile markets. Small teams suit Fixed-Price; Large teams suit Cost-Plus. If the market is projected to be volatile, and the company prioritizes risk mitigation over maximum profit, which combination should be chosen?
✓ Correct Answer: Option B
For a volatile market prioritizing risk mitigation, Cost-Plus projects are preferred due to lower risk. Cost-Plus projects are also better suited for Large teams. Thus, Cost-Plus with a Large Team is the optimal choice.