๐Ÿ“‹ PMP Exam Prep

A fixed-price contract transfers most risk to:

A The buyer
B The seller/vendor
C Both equally
D Neither

โœ“ Correct Answer: Option B

In fixed-price contracts, the seller bears cost overrun risk since the price is set regardless of actual costs.

๐Ÿ’ก Why is B) the correct answer?

The correct answer to the question "A fixed-price contract transfers most risk to:" is Option B: The seller/vendor.

The other options โ€” A) The buyer, C) Both equally, D) Neither โ€” are incorrect for this PMP Exam Prep question. As explained above: In fixed-price contracts, the seller bears cost overrun risk since the price is set regardless of actual costs.

๐Ÿ“š About This PMP Exam Prep Practice Question

This 2-level PMP Exam Prep question from the Process topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free PMP Exam Prep practice test or use flashcards for spaced repetition review.

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