CIPS Strategic Programme Leadership L6M5 Exam Questions

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Total 83 questions
Question 1

Which culture type is task-oriented, structured, and uses logic for decisions?

Answer Options:



Answer : A

A Linear-Active culture (p.176) focuses on logic, organization, and process-based decision-making.

Multi-Active (B) focuses on emotions and relationships.

Reactive (C) adapts to external changes.

Proactive (D) anticipates change, but does not define structure. [P.176]


Question 2

Why might a Public Sector Organisation use a PPP style of contract to build a new police station? Select ALL that apply.



Answer : A, B

PPP contracts are used when budgets are tight and to monetise under-performing assets. They are not mandated by law nor do they inherently ensure high quality or less administration.


Question 3

Salvador Ltd is a manufacturer of batteries for domestic appliances and hand tools. The company recently expanded due to excellent sales and introduced new machinery for producing solar-powered batteries.

They contracted Sunshine Ltd to build and install the machinery.

The contract specified that the machine must produce 5 batteries per hour, but currently, it is producing only 4 batteries per hour.

Salvador Ltd has agreed to work with Sunshine Ltd to resolve the issue within one month before liquidated damages apply.

Q: What stage is the project at?

Answer Options:



Answer : C

This is provisional acceptance (p.11). Salvador Ltd has accepted the machinery provisionally while Sunshine Ltd works on increasing capacity within the agreed timeframe. It is not at mechanical completion because further adjustments are needed. It is also not at performance testing since the machinery is not being tested at full capacity. Commercial operation would indicate that the project is fully completed, which it is not. [P.10-11]


Question 4

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?



Answer : A

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


Question 5

Skipped

Which of the following statements is true of a business that operates in a 'low-context culture' country?



Answer : C

Communication is direct and meetings are therefore shorter. This is from p. 182:

'In low-context cultures, communication is much more direct and explicit, which can result in shorter meetings and a reliance on rules to govern procedures.' CIPS gives the UK and USA as examples of a low-context culture.

Domain: 3.2


Question 6

Joanne is preparing a contract for the construction of a large shopping center.

The project includes 52 retail units, several restaurants, and a parking facility.

Joanne's company has contracted Construct Ltd under a Turnkey project.

She is using a Gantt chart as a schedule in the contract.

Q: What type of payment mechanism is being used in this contract?

Answer Options:



Answer : C

The correct answer is Activity Schedule (p.60). A Gantt chart is a time-based project planning tool, typically used in Activity Schedule contracts, where payments are tied to the completion of specific tasks. Other payment methods, such as Fixed Lump Sum and Bill of Quantity, do not rely on this approach. [P.60]


Question 7

Green Thumb Ltd, a landscaping company, is considering investing in a new lawn mower costing 10,000. The CFO estimates that the new machinery would increase annual income by approximately 2,000. What is the payback period of the investment?



Answer : C

Payback period = Investment Cost Annual Cash Flow = 10,000 2,000 = 5 years.


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Total 83 questions