Which one of the following pricing arrangements represent a low financial risk to the buyer?

• A Predetermined fixed price with adjustment clauses: While a fixed price offers some certainty, adjustment clauses (e.g., for inflation or material costs) can shift some cost risk back to the buyer if costs increase.
• B Price based on target cost, with a supplier incentive: This arrangement can involve shared risk or potential for the buyer to pay more if target costs are not met, depending on the incentive structure. It doesn't necessarily represent the lowest risk.
• C Fixed price: In a fixed-price contract, the buyer pays a set amount regardless of the supplier's actual costs. This transfers almost all cost risk to the supplier, making it a very low financial risk for the buyer, as the buyer knows their exact expenditure upfront.
• D Cost plus a fixed percentage: In this arrangement, the buyer pays the supplier's actual costs plus an agreed-upon percentage for profit. This places a high financial risk on the buyer because any cost overruns by the supplier are borne by the buyer, and the supplier's profit increases with higher costs.

A pure fixed price (Option C) provides the most certainty for the buyer regarding the final cost, as the supplier assumes the risk of cost fluctuations.

The final answer is $\text{C}$.