The guarantee given by the company winning the bid that it will pay certain specified damages to the customer if the job is not completed is known as a
A)guarantee bond.
B)performance bond.
C)junk bond.
D)warranty.

Question

Quizplus · Accepted Answer

A performance bond is a guarantee bond that ensures that the company winning the bid will complete the job as specified, and if not, will pay certain damages specified in the contract to the customer. Junk bonds are high-risk, high-yield corporate bonds, which are not applicable in this context. A warranty is a guarantee of the quality of a product or service provided by the seller or manufacturer, which is not the same as a performance bond.

The Guarantee Given by the Company Winning the Bid That