AFSB 152
TESTED QUESTIONS AND COMPLETE SOLUTIONS
Question 1.
A. Estimating, planning, and managing the work to be performed.
ANSWER
The quality of the plans and specifications can greatly influence three tasks that can determine
whether the contractor can successfully perform the work. The three tasks are
A. Estimating, planning, and managing the work to be performed.
B. Determining where, when, and how the project should be built.
C. Evaluating the plans, evaluating the contractor's expertise needed for the contract, and
noting any errors or omissions.
D. Examining the plans and specifications, rejecting any unclear details, and approving the
corrected documents.
Question 2.
D. The owner and the architect.
ANSWER
The responsibility for presenting project plans and specifications from which bidders can
readily determine how the project should be built and its costs is that of
A. The contractor.
B. The architect.
C. The owner and the contractor.
D. The owner and the architect.
, Question 3.
C. Keeping the contractor and producer informed of the bonding company's ability to serve the
contractor's bonding needs.
ANSWER
Jason is a branch-office underwriter. Jason is responsible for
A. Appealing home-office underwriting decisions to decline bond requests when it is clear that
the best decision has been made.
B. Making underwriting decisions for handling contractors' bonding needs on projects larger
than those the contractor has completed in the past.
C. Keeping the contractor and producer informed of the bonding company's ability to serve the
contractor's bonding needs.
D. Analyzing and interpreting contractors' financial underwriting information but refering any
nonfinacial information to the home office for a final underwriting decision.
Question 4.
C. $250,000.
ANSWER
Eastown Contracting's balance sheet shows $100,000 in cash, $300,000 in accounts receivable,
$50,000 in equipment, and $150,000 in accounts payable amounts; the contractor's working
capital is
A. $500,000.
B. $300,000.
C. $250,000.
D. $150,000.
Question 5.
C. Forfeiture bond
ANSWER
William has been asked to underwrite a surety bond for a construction project with efficiency
guarantees. Even though the contractor seems familiar with the plans and specifications of the
project, and has successfully completed similar projects, William is still concerned about the
efficiency guarantees. Which one of the following type of bond will limit the surety's exposure
to paying the bond penalty to the obligee?
A. Specific performance bond
B. Indemnity bond
C. Forfeiture bond
D. Payment bond
TESTED QUESTIONS AND COMPLETE SOLUTIONS
Question 1.
A. Estimating, planning, and managing the work to be performed.
ANSWER
The quality of the plans and specifications can greatly influence three tasks that can determine
whether the contractor can successfully perform the work. The three tasks are
A. Estimating, planning, and managing the work to be performed.
B. Determining where, when, and how the project should be built.
C. Evaluating the plans, evaluating the contractor's expertise needed for the contract, and
noting any errors or omissions.
D. Examining the plans and specifications, rejecting any unclear details, and approving the
corrected documents.
Question 2.
D. The owner and the architect.
ANSWER
The responsibility for presenting project plans and specifications from which bidders can
readily determine how the project should be built and its costs is that of
A. The contractor.
B. The architect.
C. The owner and the contractor.
D. The owner and the architect.
, Question 3.
C. Keeping the contractor and producer informed of the bonding company's ability to serve the
contractor's bonding needs.
ANSWER
Jason is a branch-office underwriter. Jason is responsible for
A. Appealing home-office underwriting decisions to decline bond requests when it is clear that
the best decision has been made.
B. Making underwriting decisions for handling contractors' bonding needs on projects larger
than those the contractor has completed in the past.
C. Keeping the contractor and producer informed of the bonding company's ability to serve the
contractor's bonding needs.
D. Analyzing and interpreting contractors' financial underwriting information but refering any
nonfinacial information to the home office for a final underwriting decision.
Question 4.
C. $250,000.
ANSWER
Eastown Contracting's balance sheet shows $100,000 in cash, $300,000 in accounts receivable,
$50,000 in equipment, and $150,000 in accounts payable amounts; the contractor's working
capital is
A. $500,000.
B. $300,000.
C. $250,000.
D. $150,000.
Question 5.
C. Forfeiture bond
ANSWER
William has been asked to underwrite a surety bond for a construction project with efficiency
guarantees. Even though the contractor seems familiar with the plans and specifications of the
project, and has successfully completed similar projects, William is still concerned about the
efficiency guarantees. Which one of the following type of bond will limit the surety's exposure
to paying the bond penalty to the obligee?
A. Specific performance bond
B. Indemnity bond
C. Forfeiture bond
D. Payment bond
