Which type of projects are considered contingent?

Study for the Arizona State University Fin300 Final Exam. Prepare with multiple choice questions, each question comes with detailed hints and explanations. Get ready for your finance fundamentals exam!

Contingent projects are those whose feasibility or implementation depends on the approval or completion of other projects. This means that the initiation or further progress of these projects is reliant on certain conditions being met, particularly the approval of related projects or initiatives.

For example, if a company aims to build a new facility but requires a new infrastructure project to be completed first, its own project would be considered contingent on the success of the infrastructure project. This characteristic makes such projects sensitive to external factors, which is a crucial aspect of project management and finance.

The other choices refer to different aspects of project management but do not accurately define contingent projects. Fixed outcomes relate to certainty in results, stakeholder approvals pertain to the governance process but not necessarily to dependency on other projects, and guaranteed immediate returns imply a focus on profitability rather than the dependency of one project on another. Thus, the nature of contingent projects is clearly highlighted in the correct choice.

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