A contractor has a $25,000 contractor bond and a required $25,000 qualifying individual bond. What total is represented?
Correct Answer
A) $50,000.
Two $25,000 bonds total $50,000.
Why This Is the Correct Answer
Two $25,000 bonds total $50,000.
Why the Other Options Are Wrong
Option B: $37,500.
$37,500. is below the supported result for contractor bond; it likely omits allowance, conversion, coverage, or final round-up.
Option C: $62,500.
$62,500. is above the supported result for contractor bond; it likely double-counts allowance, uses the wrong unit, or rounds too early.
Option D: $50,100.
$50,100. is above the supported result for contractor bond; it likely double-counts allowance, uses the wrong unit, or rounds too early.
Memory Technique
Estimating License takeoff: count the condition before counting the package.
Reference Hint
Study anchor (closed-book): memorize Contractor bond from CSLB bond and license maintenance guidance; California Business and. / CSLB contractor bond and qualifying individual bond guidance; know the rule or calculation trigger without relying on exam-room lookup.
More Law & Business Questions
A Fresno homeowner wants a $725 cabinet repair and trim adjustment. Which contract step best matches CA home improvement requirements?
A project has $6,500 retainage withheld. The owner releases 60 percent of retainage at substantial completion. How much cash is released?
Cash is $52,500 and monthly burn is $17,500. How many months of runway are available?
A supplier offers 1.5 percent early-pay discount on a $22,000 invoice. What is the discount?
A balance sheet lists assets of $310,000 and liabilities of $185,000. What is owner's equity?
A job is estimated to cost $135,000. What price gives a 25 percent gross margin?
A customer invoice of $4,000 has a stated late charge of 1.5 percent. What late charge is added?
A bid has direct labor of $18,000, materials of $12,500, and equipment rental of $3,500. If the contractor adds 20 percent markup on direct cost, what is the bid price?
A contractor wants a 25 percent gross margin on a job with estimated cost of $60,000. What selling price gives that margin?
A completed project sold for $150,000 and had total cost of $126,000. What gross margin percentage did the project earn?