CIPS L6M5 Exam Questions Instant Access - No Installation Required

Question 1

Josh is the son of the CEO of a law firm and has recently been hired as a trainee attorney, following his graduation from University. He has been with the company for three months and middle management often invite him to meetings that other trainee attorneys are not invited to. What type of power does he have that would explain this?

Apositional power

Bexpert power

Cpersonal power

Dnegative power

Answer : A

Josh's access is due to his family connection, which is an example of positional power.

Question 2

A person who disrupts progress and hinders culture change holds which type of power?

Answer Options:

ADismissive

BContrary

CPessimistic

DNegative

Answer : D

Negative Power (p.199) refers to individuals obstructing progress in an organization.

Dismissive (A) means ignoring opinions.

Contrary (B) and Pessimistic (C) do not refer to organizational influence. [P.199]

Question 3

Robyn has created a contract for a construction project and has used "The Red Book."

Q: Which professional organization is responsible for creating this contract?

Answer Options:

AJCT

BNEC

CCIPS

DFIDIC

Answer : D

The Red Book is part of the FIDIC 'Rainbow Suite' of contracts (p.40). FIDIC contracts are categorized by color, each serving a specific purpose in construction and engineering projects. [P.40]

Question 4

Manchester City Council is planning to construct a new hospital using an EPC style of contract. Which two of the following are the greatest risks to the Council?

Aensuring the specification is correct

Bsetting an accurate budget before the contract is signed

Caccurately communicating the requirements to the contractor

Dincluding a time-is-of-the-essence clause within the contract

Eensuring the contractor limits the use of subcontractors

Answer : A, C

The main risks are ensuring that the specification is correct and that the requirements are accurately communicated to the contractor.

Question 5

In which scenario would a Cost Reimbursable contract be most suitable?

Answer Options:

AA research project where the exact scope of work is unknown at the onset

BA construction project where raw material prices may fluctuate

CThe creation of a new product, where time is critical, and the client wishes to reward the contractor for speedy delivery

DThe manufacturing of food items, where the client may return raw materials that do not meet specifications

Answer : A

Cost Reimbursable contracts are widely used in research projects where the exact scope is uncertain (p.69). These contracts allow for flexibility in cost adjustments based on project progress. Option B describes a contract using cost-plus pricing, and Options C and D do not fit this contract model. [P.69]

Question 6

At what stage in a program's lifecycle is an Investment Appraisal conducted?

Answer Options:

ABefore contracting -- to ensure the program is viable

BAt the initiation stage -- to decide which contractor to hire

CDuring the project -- to ensure that money is being well spent and the program will be delivered to schedule

DAfter completion -- to assess whether money was invested wisely

Answer : A

Investment Appraisal is performed before a program is approved (p.69). It evaluates whether the project is financially viable and likely to provide a return on investment. Option B relates to procurement, and Options C and D are post-implementation assessments. [P.69]

Question 7

Golden Rainbow Ltd has invested 4m in a new research project started three years ago. The CFO calculates that the average rate of return on the project is --6%. Is this possible?

Ayes -- projects can have a negative rate of return

Byes -- but this is likely to change to a positive figure shortly

Cno -- a rate of return is always displayed as a positive number

Dno -- a rate of return is expressed in years rather than as a percentage

Answer : A

A negative rate of return indicates that the project is generating a loss of 6% per annum.

CIPS Strategic Programme Leadership L6M5 Exam Questions