Post Utme Covenant University 2019 Commerce Question 14

Practice objective / multiple choice question 14 from the 2019 Post Utme Covenant University Commerce examination.

Post Utme Covenant University 2019 Commerce Objective / Multiple Choice
Question 14 POST_UTME_COVENANT_UNIVERSITY • 2019 • COMMERCE • objective

A company is considering entering into a contract with a supplier. The contract includes a clause that requires the company to pay a penalty of ₦100,000 if it fails to meet its delivery deadline. What type of contract is this?

Answer Options

A. Fixed-price contract
B. Cost-plus contract
Correct Answer C. Penalty contract
D. Time-and-materials contract
Correct Answer
C
Correct Option:
Penalty contract

About This Question

This is Post Utme Covenant University 2019 Commerce Question 14. It is one of the objective questions from the 2019 Post Utme Covenant University Commerce examination.

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