A Surety Bond That Ensures a Property Owner of the Completion

question 38

Multiple Choice

A surety bond that ensures a property owner of the completion of a construction contract or payment of actual damages to the extent of the bond in the event that the contractor fails to complete it is called a _____ bond:

• A) judicial
• B) fidelity
• C) chattel
• D) codicil
• E) performance

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Definitions:

Payroll Taxes

Government levies on employee earnings to support social insurance programs, characteristically deducted from a worker's paycheck.

Social Security

A government program designed to provide financial assistance to retirees, disabled individuals, and survivors of deceased workers, funded through payroll taxes.

Federal Government

The national government of a federation that holds authority over the central matters of governance, as distinct from regional or local governments.

Tax Revenue

The income that is gained by governments through taxation, which is then used to fund public services and infrastructure.