AFSB 152 THE INSTITUTES CERTIFICATION
EVALUATION TEST 2026 COMPREHENSIVE
QUESTIONS WITH SOLUTIONS GRADED A+
⩥ D. A basic status report shows specific and limited data for a contract.
Answer: Which one of the following is true regarding types of contact
status reports?
Select one:
A. As comprehensive reports contain cumulative data, analyzing a series
of reports is not necessary.
B. Only the comprehensive report can prove useful in establishing
billing-cost-gross profit relationships.
C. Both basic and comprehensive reports provide a complete financial
profile.
D. A basic status report shows specific and limited data for a contract.
⩥ D. The parent company's domicile.
Answer: Samuel has been asked to underwrite a contract bond for an
entity operating in the U.S. that has an international parent. He is only
willing to write the bond through a cooperative underwriting agreement,
,with indemnity agreements from the foreign parent and the U.S. entity.
Under this arrangement, it is important that the indemnification be
perfected and enforceable under the laws of
A. The state where the project owner is located.
B. The location of the project.
C. The state where the U.S. entity is located.
D. The parent company's domicile.
⩥ A. Government requirements may require a seal on the plans from a
professional engineer or a registered architect, and the design/build
contractor may not have a designer on staff.
Answer: Which one of the following describes a problem a project
owner could encounter when using a design/build contractor?
A. Government requirements may require a seal on the plans from a
professional engineer or a registered architect, and the design/build
contractor may not have a designer on staff.
B. The design/build contractor charges a separate design fee in addition
to the construction overhead and profit, so the overall project cost may
be high.
,C. Increased planning time should be allotted in the project for
communication among design professionals, contractors, and the project
owner.
D. The design/build contractor has no experience with or knowledge of
the costs associated with various construction techniques and materials.
⩥ B. Contractor.
Answer: The party that directly benefits from an enhanced competitive
position in private work because of the surety's assurance that its
capacity to perform has been carefully reviewed is the
A. Taxpayers.
B. Contractor.
C. Project owner.
D. Architect or engineer.
⩥ B. Additional compensation and an extension of time.
Answer: Stanton Construction was the general contractor on a
construction project for Rowe Industries. The project experienced a
delay due to a reorganization at Rowe Industries. Because this was
classified as a compensable delay under the construction contract,
Stanton Construction was entitled to
, A. An extension of time only.
B. Additional compensation and an extension of time.
C. Additional compensation only.
D. Terminate the contract without penalty.
⩥ D. Lenders bond
Answer: Which one of the following guarantees completion of a project
if the principal fails to perform, in accordance with the plans and
specifications, in the given time limit and free of liens?
A. Timber contract bond
B. Conventional bond
C. Subdivision bond
D. Lenders bond
⩥ A. Its income is not taxed at the corporate level.
Answer: Kim operates a small business out of her home. She decided to
file the company as a Subchapter S corporation. The primary advantage
of a Subchapter S corporation for small businesses with a limited
number of owners is that
A. Its income is not taxed at the corporate level.
B. Its income is taxed at the corporate level.
EVALUATION TEST 2026 COMPREHENSIVE
QUESTIONS WITH SOLUTIONS GRADED A+
⩥ D. A basic status report shows specific and limited data for a contract.
Answer: Which one of the following is true regarding types of contact
status reports?
Select one:
A. As comprehensive reports contain cumulative data, analyzing a series
of reports is not necessary.
B. Only the comprehensive report can prove useful in establishing
billing-cost-gross profit relationships.
C. Both basic and comprehensive reports provide a complete financial
profile.
D. A basic status report shows specific and limited data for a contract.
⩥ D. The parent company's domicile.
Answer: Samuel has been asked to underwrite a contract bond for an
entity operating in the U.S. that has an international parent. He is only
willing to write the bond through a cooperative underwriting agreement,
,with indemnity agreements from the foreign parent and the U.S. entity.
Under this arrangement, it is important that the indemnification be
perfected and enforceable under the laws of
A. The state where the project owner is located.
B. The location of the project.
C. The state where the U.S. entity is located.
D. The parent company's domicile.
⩥ A. Government requirements may require a seal on the plans from a
professional engineer or a registered architect, and the design/build
contractor may not have a designer on staff.
Answer: Which one of the following describes a problem a project
owner could encounter when using a design/build contractor?
A. Government requirements may require a seal on the plans from a
professional engineer or a registered architect, and the design/build
contractor may not have a designer on staff.
B. The design/build contractor charges a separate design fee in addition
to the construction overhead and profit, so the overall project cost may
be high.
,C. Increased planning time should be allotted in the project for
communication among design professionals, contractors, and the project
owner.
D. The design/build contractor has no experience with or knowledge of
the costs associated with various construction techniques and materials.
⩥ B. Contractor.
Answer: The party that directly benefits from an enhanced competitive
position in private work because of the surety's assurance that its
capacity to perform has been carefully reviewed is the
A. Taxpayers.
B. Contractor.
C. Project owner.
D. Architect or engineer.
⩥ B. Additional compensation and an extension of time.
Answer: Stanton Construction was the general contractor on a
construction project for Rowe Industries. The project experienced a
delay due to a reorganization at Rowe Industries. Because this was
classified as a compensable delay under the construction contract,
Stanton Construction was entitled to
, A. An extension of time only.
B. Additional compensation and an extension of time.
C. Additional compensation only.
D. Terminate the contract without penalty.
⩥ D. Lenders bond
Answer: Which one of the following guarantees completion of a project
if the principal fails to perform, in accordance with the plans and
specifications, in the given time limit and free of liens?
A. Timber contract bond
B. Conventional bond
C. Subdivision bond
D. Lenders bond
⩥ A. Its income is not taxed at the corporate level.
Answer: Kim operates a small business out of her home. She decided to
file the company as a Subchapter S corporation. The primary advantage
of a Subchapter S corporation for small businesses with a limited
number of owners is that
A. Its income is not taxed at the corporate level.
B. Its income is taxed at the corporate level.
