AFSB 152 Practice Exam
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Terms in this set (50)
,Contractor A A. Because the next highest bid ($1
submits a bid of million) is 25 percent more than the low
$800,000, bid ($800,000), which is greater than a
Contractor B 10 percent difference, the bond
submits $1 million, underwriter would carefully investigate
Contractor C the differences and may not issue the
submits $1.2 performance and payment bonds.
million, and
Contractor D
submits $1.1 million.
Which one of the
following explains
the outcome of
applying the 10
percent rule for
bids?
A. Because the
next highest bid
($1 million) is 25
percent more than
the low bid
($800,000), which
is greater than a 10
percent
difference, the
bond underwriter
would carefully
,investigate the
differences and
may not issue the
performance and
payment bonds.
B. Because the
difference
between the high
and low bids is 50
percent more than
the low bid of
$800,000, which is
greater than a 10
percent
difference, the
bond underwriter
would probably
decline to issue
the performance
and payment
bonds.
C. Because the
average of the
next two highest
bids is 1.05 million,
and the difference
between this
, betwee t s
amount and the
low bid is 31.25
percent more than
the low bid of
$800,000, which is
greate
Save
Terms in this set (50)
,Contractor A A. Because the next highest bid ($1
submits a bid of million) is 25 percent more than the low
$800,000, bid ($800,000), which is greater than a
Contractor B 10 percent difference, the bond
submits $1 million, underwriter would carefully investigate
Contractor C the differences and may not issue the
submits $1.2 performance and payment bonds.
million, and
Contractor D
submits $1.1 million.
Which one of the
following explains
the outcome of
applying the 10
percent rule for
bids?
A. Because the
next highest bid
($1 million) is 25
percent more than
the low bid
($800,000), which
is greater than a 10
percent
difference, the
bond underwriter
would carefully
,investigate the
differences and
may not issue the
performance and
payment bonds.
B. Because the
difference
between the high
and low bids is 50
percent more than
the low bid of
$800,000, which is
greater than a 10
percent
difference, the
bond underwriter
would probably
decline to issue
the performance
and payment
bonds.
C. Because the
average of the
next two highest
bids is 1.05 million,
and the difference
between this
, betwee t s
amount and the
low bid is 31.25
percent more than
the low bid of
$800,000, which is
greate
