The required contractor bond is $25,000, but the bond on file is $18,750. What shortage exists?
Correct Answer
A) $6,250.
The face-amount gap is $25,000 − $18,750 = $6,250. The $18,750 choice is the amount on file; $43,750 adds instead of subtracting; $5,250 is not the difference. This arithmetic does not calculate a bond premium or establish that multiple separate bonds can be combined. Source: https://www.cslb.ca.gov/contractors/maintain_license/bond_information/bond_requirements.aspx
Why This Is the Correct Answer
The face-amount gap is $25,000 − $18,750 = $6,250. The $18,750 choice is the amount on file; $43,750 adds instead of subtracting; $5,250 is not the difference. This arithmetic does not calculate a bond premium or establish that multiple separate bonds can be combined. Source: https://www.cslb.ca.gov/contractors/maintain_license/bond_information/bond_requirements.aspx
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