Where the Owner Is Sufficiently Familiar and Confident of the Financial

question 37

True/False

Where the owner is sufficiently familiar and confident of the financial and contractual capabilities of the GCs bidding for the project, the owner may not require the bid bond. This reduces the total cost of construction.

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Definitions:

Operating Activities

Activities that constitute the primary or main activities of an entity, including cash flows from producing and delivering goods and providing services.

Noncontrolling Interest

An ownership interest in a company that is less than 50%, usually reflected as a separate component of equity on a parent company’s balance sheet, representing the portion of its subsidiaries not owned by the parent.

Dividends

Distributions made from a company's earnings to its shareholders, typically in the form of cash.

Consolidated Statement

A financial report that combines the financial results of a parent company and its subsidiaries, presenting the financials as a single entity.