Online Access Free L6M5 Exam Questions

A local library is contracting a construction firm to design and build a new extension using a target costing method. Which of the following statements are true about this pricing mechanism? Select all that apply

• A.the contractor is a price setter
• B.this form of contract requires a collaborative relationship
• C.a target cost will ensure the contractor works competitively against the library to ensure costs remain low and their profit margin remains high
• D.any cost savings will be enjoyed by the library

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?

• A.personal power
• B.positional power
• C.negative power
• D.expert power

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

• A.Before contracting - to ensure the program is viable
• B.During the project - to ensure that money is being well spent and the program will be delivered to schedule
• C.At the initiation stage - to decide which contractor to hire
• D.After completion - to assess whether money was invested wisely

Glitter Kitten Ltd CEO applies the Payback Analysis for expansion.
Investment: £50m
Annual returns: £10m
Q: What is the payback period?
Answer Options:

• A.1 year
• B.50 years
• C.5 years
• D.10 years

Liability limitation often focuses on which of the following types of loss, which is said to be the most unpredictable and most significant in the case of a default on a contract?

• A.consequential
• B.anticipatory
• C.direct
• D.repudiatory