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CIPS L6M5 Latest Exam Question & Reliable L6M5 Exam Price
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CIPS Strategic Programme Leadership Sample Questions (Q64-Q69):
NEW QUESTION # 64
Glitter Kitten Ltd CEO applies the Payback Analysis for expansion.
Investment: £50m
Annual returns: £10m
Q: What is the payback period?
Answer Options:
- A. 5 years
- B. 1 year
- C. 50 years
- D. 10 years
Answer: A
Explanation:
Payback period formula:
Investment (£50m) ÷ Annual inflow (£10m) = 5 years. [P.1.4]
NEW QUESTION # 65
Under which style of contract is the client, rather than the construction company, responsible for the design of a building?
- A. EPC
- B. DBO
- C. Management Contracting
- D. DBOO
Answer: C
Explanation:
In Management Contracting, the client retains responsibility for the design.
NEW QUESTION # 66
What is Earned Value Analysis (EVA) in project management?
Answer Options:
- A. The profit or loss generated by the project thus far
- B. The value of a project, expressed as a percentage of money invested
- C. The amount of resources allocated to a project vs. resources available
- D. A comparison of where the project is up to vs. where it is forecasted to be
Answer: D
Explanation:
EVA compares planned vs. actual project progress (p.112). It ensures projects stay on track by measuring deviations from expectations. Option B relates to financial performance, C describes ROI, and D refers to resource allocation. [P.112]
NEW QUESTION # 67
Spaceman Ltd's R&D team has a strong relationship with its supplier of spaceship parts.
The space exploration industry is becoming highly competitive.
The team is looking for ways to enhance profits and market share.
Q: What strategy should Spaceman Ltd use?
Answer Options:
- A. Consortium-Based Procurement
- B. Value Engineering
- C. Variance Analysis
- D. Open-Book Costing
Answer: B
Explanation:
Value Engineering (p.100) is used to optimize costs and improve profitability in competitive industries. It leverages supplier relationships to cut costs and increase value. Variance Analysis (A) is for budgeting, and Consortium Procurement (C) relates to bulk purchasing, which is not the issue here. [P.100]
NEW QUESTION # 68
Cyril Engineering entered into a contract with Dojo Ltd for electrical engineering services to a power station.
The contract was successful for two years, but Cyril Engineering failed to fulfill obligations recently.
Q: What is this situation known as?
Answer Options:
- A. Default
- B. Consequential Loss
- C. Direct Loss
- D. Damages
Answer: A
Explanation:
Failure to meet contractual obligations is classified as Default (p.123).
Consequential Loss (A) refers to indirect financial loss due to contract failure.
Damages (B) are legal remedies for breaches.
Direct Loss (D) relates to immediate financial impact, but default is the correct term for a failure to meet obligations. [P.123]
NEW QUESTION # 69
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