A Fleming Island startup expects its first bonded job to require a $950,000 bond at 0.9%. What bond premium should be budgeted?
Correct Answer
C) $8,550.00
Bond premium budget equals bond amount multiplied by the rate.
Why This Is the Correct Answer
Bond premium budget equals bond amount multiplied by the rate.
Why the Other Options Are Wrong
Option A: $855.00 operations startup note
$855.00 operations startup note is below the supported result for bond premium budget; it likely skips a premium-pay or employer-cost component.
Option B: $958,550.00 startup control file
$958,550.00 startup control file is above the supported result for bond premium budget; it likely pays the wrong premium tier or counts the same hours twice.
Option D: $4,275.00 license setup record
$4,275.00 license setup record is below the supported result for bond premium budget; it likely skips a premium-pay or employer-cost component.
Memory Technique
Bid Coordinator payroll: time, premium, reimbursement, proof in separate buckets.
Reference Hint
Open-book path: tab Contractor's Manual, 2025 to Bonding setup and bid-cost planning; verify the startup duty, registration, or financial setup before answering.
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