CSLB's current contractor bond amount is $25,000. If a contractor already has a $15,000 bond on file, how much additional bond amount is needed to reach $25,000?
Correct Answer
C) $10,000.
The face-amount difference is $25,000 − $15,000 = $10,000. Neither $9,900 nor $9,500 fills that difference; $12,000 exceeds it. This is not the surety premium or a direction to buy a separate additive bond. Arrange the required compliant bond or endorsement with the surety. Source: https://www.cslb.ca.gov/contractors/maintain_license/bond_information/bond_requirements.aspx
Why This Is the Correct Answer
The face-amount difference is $25,000 − $15,000 = $10,000. Neither $9,900 nor $9,500 fills that difference; $12,000 exceeds it. This is not the surety premium or a direction to buy a separate additive bond. Arrange the required compliant bond or endorsement with the surety. Source: https://www.cslb.ca.gov/contractors/maintain_license/bond_information/bond_requirements.aspx
Independent practice; verify any reference hint against the edition and category permitted for your booking. Official exam and reference-list sources →
More Law & Business Questions
A contractor pays workers through a payment app but does not issue itemized pay statements. What is missing?
Apply California’s standard overtime rules, with no alternative-workweek or other exception. A nonexempt worker at a regular rate of $36 per hour works 15 hours in one day. What is the day's gross pay, ignoring weekly overtime?
A supplier delivers special-order windows to the site, but the contract does not list when material payments are due. What should be checked?
A site checklist requires 31 separate SDS records, one for each listed product. It contains 27 valid records corresponding to 27 different listed products, with no duplicates or shared SDS entries. How many required records are missing?
In the bathroom addition file, cash is $28,000, receivables are $44,000, inventory is $16,000, and current liabilities are $60,000. What is the quick ratio?
A worker requests their own payroll records, but the company says only managers may see them. What should be reviewed?
Special-order cabinets are stored at the supplier, but the contract only pays for materials delivered to the job. What should be checked?
A contractor is unsure whether a publicly funded building upgrade is public work. What is the best first step?
A contractor's workers' compensation certificate lists the policy number but omits effective and expiration dates. What is the problem?
A jobsite stores flammable liquid next to ignition sources and exits. What is the best correction?
People Also Study
Related Study Resources
Previous Question
A construction employer subject to Wage Order 16 keeps payroll records in a foreman’s notebook at the workplace, without a separate office copy. Which compliance issue should be checked before deciding whether this system is adequate?
Next Question
A contractor buys a major tool that will be used for several years. Which concept best matches spreading its cost over useful life?