Here are 3 questions please also briefly explain

1.)  In your project, you have been sub-contracting your IT development work to four consultancy firms. In this context, all the following statements relating to transferring of risk to a contractor are true EXCEPT:

  A  Risk transference nearly always involves payment of a risk premium.
  B  Fixed price contract always transfers the risk to the seller.
  C  Cost-plus contracts may transfer the cost risks to the buyer. 
  D  Contracts may be used for the transference of liability for specified risks to another party. 



2.) Your company has entered into a joint venture with another company, and you are in the process of finalizing a teaming agreement. In the teaming agreement, both the buyer and the seller collectively prepare:

  A  Source selection criteria 
  B  Contract 
  C  Procurement statement of work 
  D  Contract, Procurement statement of work 


3.)  In your project, you have conducted a communication requirements analysis to determine the total number of possible communication channels in the project. While conducting the analysis, you learn that the number of communication channels:

  A  Increases in direct proportion to the number of people 
  B  Decreases in inverse proportion to the number of people
  C  Increases in exponential proportion when the number of people increases
  D  Depends on the type of project 

Thank you all.


1) B - The wording 'always' is not necessarily true.  The seller will take into account the potential risk magnitude and quotes accordingly to mitigate his risk.  If the seller manages well, the buyer is paying a huge amount for an exaggerated/perceived risk and is also sharing risk by incurring a bigger than normal expenditure/cost

2) D.  To begin with, the teaming agreement is a contract between 2 parties to exploit and share the returns.  Since they both are parties, the procurement Statement of Work should be jointly addressed as both are stakeholders in the outcome.

3) C.  The number of communication channels: n (n-1)/2.  Expanding it: (n^2-n)/2.  The n^2 term clearly states that the number of channels grow exponentially with the number of people



As per me the answers are 

 1---> D

2--> C

3-> C

1.)B --> The word "Always" has made me strike out this options. Rest is all elimination technique.

2.) D

3.) C


1.) Answer: B
A fixed-price contract may transfer risk to the seller.

Reference: PMBOK® Guide Fourth Edition, Page Number:303

A fixed price contract transfers risk to the seller if requirements are well defined and seller has the capacity to handle the risk.


2.) Answer : D
 Justification :

  Teaming agreement:... The effort of the buyer and the seller in this process is to collectively prepare a procurement statement of work that will satisfy the requirements of the project. The parties will then negotiate a final contract for award.

Reference: PMBOK® Guide Fourth Edition, Page Number:331

3.) Answer: C

justification :

  The number of communication channels increases exponentially as the number of people increases.