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L3M3 Exam Dumps : Contract Administration

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Contract Administration Questions and Answers

Question 1

What do we call it when a seller sets a low introductory price to win customers, or to discourage competitors owing to the low margins achievable in the marketplace? Choose one.

Options:

A.

Cost mark-up pricing

B.

Competitive pricing

C.

Promotional pricing

D.

Penetration pricing

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Question 2

If your organisation takes out insurance cover to address various risks, which one of the following risk management strategies is it adopting?

Options:

A.

Treat

B.

Terminate

C.

Tolerate

D.

Transfer

Question 3

The variable cost of a bottle of water is 25 cents. Selling price is $1, and fixed costs are one hundred thousand dollars. How many bottles of water must be sold to reach breakeven point?

Options:

A.

4 million

B.

133,333

C.

400,000

D.

13,333