Another Question on Contract
24 Your program manager has come to you, the project manager, for help with a bid for her newest project. You want to protect your company from financial risk. You have limited scope definition. What is the BEST type of contract to choose?
Fixed price (FP)
Cost plus percent of cost (CPPC)
Time and material (T&M)
Cost plus fixed fee (CPFF)
Why answer is D, not B? "You want to protect your company from financial risk". So I should put risk on seller's side. D is not the answer, because "You have limited scope definition". C is not right. Only B or D left. Why not B?