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CIPS Strategic Programme Leadership Sample Questions (Q43-Q48):

NEW QUESTION # 43
A positive work culture can lead to which of the following benefits? Select all that apply

A. lower levels of redundancy
B. increased productivity
C. improved performance
D. higher retention
E. higher levels of resistance to change

Answer: B,C,D

Explanation:
Improved performance, increased productivity, and higher retention are benefits of a positive work culture.

NEW QUESTION # 44
Why would a company use a discounted cash flow in calculating an Investment Appraisal? Select all that apply

A. to account for time delays in completing a programme
B. to ensure the correct amount of money is invested in the programme
C. to account for the time value of money
D. to accurately compare two projects which will last a different number of years
E. to provide a buffer to the budget

Answer: C,D

Explanation:
Discounted cash flow accounts for the time value of money and allows for an accurate comparison of projects with different durations.

NEW QUESTION # 45
In which scenario would a Cost Reimbursable contract be most suitable?
Answer Options:

A. A construction project where raw material prices may fluctuate
B. The manufacturing of food items, where the client may return raw materials that do not meet specifications
C. The creation of a new product, where time is critical, and the client wishes to reward the contractor for speedy delivery
D. A research project where the exact scope of work is unknown at the onset

Answer: D

Explanation:
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]

NEW QUESTION # 46
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?

A. 20%
B. £8,000
C. 10 years
D. 5 years

Answer: D

Explanation:
Payback period = Investment Cost ÷ Annual Cash Flow = £10,000 ÷ £2,000 = 5 years.

NEW QUESTION # 47
Scenario:
Fin Inc is a consultancy organisation in the private sector, founded 10 years ago by CEO Geoff Davies, who runs a tight ship. Many employees are scared of Geoff, and there are rumours that he fires people for refusing overtime. Fin Inc is working with a new client on a shopping centre project led by the well-liked CFO. The client wants a flexible, collaborative contract with transparent cost-sharing.
What type of organisational structure does Fin Inc have?

A. task
B. power
C. person
D. role

Answer: B

Explanation:
The structure is centred around the CEO's authoritative style, which is indicative of a power-based structure.

NEW QUESTION # 48
......

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