AFSB 152
LATEST ACTUAL EXAM WITH VERIFIED QUESTIONS &
CORRECT ANSWERS
Question 1.
Forfeiture bid bond
ANSWER
Bid bond requiring payment of full bond amount regardless of actual damages.
Question 2.
Fixed costs
ANSWER
Costs that do not change with output during a particular time period.
Question 3.
General and administrative expenses
ANSWER
Costs of operating the contractor's home office.
Question 4.
Performance bond claim
ANSWER
Claim by obligee alleging principal materially failed to perform.
Question 5.
Interim financial statement
ANSWER
Quarterly or semiannual financial report within the fiscal year.
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, Question 6.
Mechanic's lien law
ANSWER
State law allowing unpaid labor/material suppliers to file liens against real estate.
Question 7.
Timber contract
ANSWER
Agreement where contractor purchases timber rights and pays seller for timber harvested.
Question 8.
First-tier claimant
ANSWER
Claimant contracting directly with the prime contractor.
Question 9.
Payment bond claim
ANSWER
Claim by covered laborer, subcontractor, or supplier for nonpayment.
Question 10.
Turnkey project
ANSWER
Contractor agrees to deliver a completed building on a specified date and may handle design
and financing.
Question 11.
Indemnity bond
ANSWER
Bond requiring reimbursement for actual loss.
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LATEST ACTUAL EXAM WITH VERIFIED QUESTIONS &
CORRECT ANSWERS
Question 1.
Forfeiture bid bond
ANSWER
Bid bond requiring payment of full bond amount regardless of actual damages.
Question 2.
Fixed costs
ANSWER
Costs that do not change with output during a particular time period.
Question 3.
General and administrative expenses
ANSWER
Costs of operating the contractor's home office.
Question 4.
Performance bond claim
ANSWER
Claim by obligee alleging principal materially failed to perform.
Question 5.
Interim financial statement
ANSWER
Quarterly or semiannual financial report within the fiscal year.
1/8
, Question 6.
Mechanic's lien law
ANSWER
State law allowing unpaid labor/material suppliers to file liens against real estate.
Question 7.
Timber contract
ANSWER
Agreement where contractor purchases timber rights and pays seller for timber harvested.
Question 8.
First-tier claimant
ANSWER
Claimant contracting directly with the prime contractor.
Question 9.
Payment bond claim
ANSWER
Claim by covered laborer, subcontractor, or supplier for nonpayment.
Question 10.
Turnkey project
ANSWER
Contractor agrees to deliver a completed building on a specified date and may handle design
and financing.
Question 11.
Indemnity bond
ANSWER
Bond requiring reimbursement for actual loss.
2/8
