A Kissimmee startup estimates bonding support at 8 times working capital. Working capital is $285,000 and committed backlog is $980,000. What remaining capacity is indicated?
Correct Answer
B) $1,300,000
Remaining bonding capacity equals estimated support less committed backlog.
Why This Is the Correct Answer
Remaining bonding capacity equals estimated support less committed backlog.
Why the Other Options Are Wrong
Option A: $2,280,000 ownership review memo
$2,280,000 ownership review memo is above the supported result for startup bonding capacity; it likely adds an unsupported amount or compares the wrong financial base.
Option C: $695,000 office launch checklist
$695,000 office launch checklist is below the supported result for startup bonding capacity; it likely uses the wrong base, period, or account bucket.
Option D: $1,585,000 bonding support file
$1,585,000 bonding support file is above the supported result for startup bonding capacity; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Startup Bonding Capacity drawer for Prepares Surety: label remaining before counting dollars.
Reference Hint
Open-book path: tab Contractor's Manual, 2025 to Bonding prequalification and working-capital support; verify the startup duty, registration, or financial setup before answering.
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