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CIPS L6M5 Exam Syllabus Topics:
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CIPS Strategic Programme Leadership Sample Questions (Q15-Q20):
NEW QUESTION # 15
Jennifer is drafting a contract with a "termination for convenience" clause.
Q: What obligations should be included in this clause? (Select all that apply.)
- A. The smooth transition of services to a new supplier
- B. The destruction of confidential information
- C. The return of any advance payments
Answer: A,B,C
Explanation:
A termination for convenience clause outlines the responsibilities when a contract is ended early by mutual agreement (p.135).
Returning advance payments ensures fairness.
Destroying confidential data prevents misuse.
Smooth service transition minimizes disruptions.
A review meeting is not mandatory, so it is incorrect. [P.135]
NEW QUESTION # 16
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. Direct Loss
- B. Default
- C. Consequential Loss
- D. Damages
Answer: B
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 # 17
Scenario (same as Question 16):
In terms of the Cultural Web, which of the following impacts on staff behaviour?
- A. control systems
- B. symbols
- C. stories
- D. rituals
Answer: C
Explanation:
Stories (in the form of rumours) about the CEO affect how staff behave.
NEW QUESTION # 18
Fred is comparing two possible projects that will last for different durations.
His company can only select one project due to financial constraints.
He needs a method to compare the financial benefits of both projects.
Q: Is a payback analysis a useful tool for Fred to use?
Answer Options:
- A. Yes - this will provide Fred with a rate of return that is useful to accurately forecast profits
- B. Yes - this will account for the difference in duration of the two projects
- C. No - this will not account for the difference in duration of the two projects
- D. No - there is no formula to calculate this, and a discount factor must be used
Answer: B
Explanation:
A Payback Analysis (p.72) calculates how long it takes for a project to recover its initial investment. It accounts for project duration but does not provide a rate of return (Option C). Discount factors (Option D) are used in Net Present Value (NPV) analysis, not Payback Analysis. [P.72]
NEW QUESTION # 19
Which of the following statements about investment appraisal techniques are true? (Select all that apply.) Answer Options:
- A. Return on Capital Employed (ROCE) is expressed as a percentage of the value of assets used to generate profit
- B. Payback analysis ignores cash flow after the business recovers its costs
- C. Non-discounted cash flow methods focus on profit maximization
- D. Internal Rate of Return (IRR) can be used with Net Present Value (NPV)
Answer: A,B,D
Explanation:
Option B is correct - ROCE is expressed as a percentage (p.87).
Option C is correct - Payback Analysis only considers the break-even point (p.83).
Option D is correct - IRR and NPV are often used together (p.82).
Option A is incorrect - Profit maximization is not the primary focus of non-discounted cash flow methods. [P.82-87]
NEW QUESTION # 20
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