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L5M8 Practice Questions

Project and Change Management

Last Update 4 days ago
Total Questions : 88

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Our free CIPS Level 5 Advanced Diploma in Procurement and Supply practice questions crafted to reflect the domains and difficulty of the actual exam. The detailed rationales explain the 'why' behind each answer, reinforcing key concepts about L5M8. Use this test to pinpoint which areas you need to focus your study on.

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Question # 11

Derek is a Project Manager at Dandelion Ltd and is beginning the project initiation phase of a new project looking into the creation of a new product line. He is creating a business case for senior leadership. Should Derek include within this risks and concerns he has about the potential failure of the project?

Options:

A.  

yes – it is important that senior management are aware of the risks and a contingency plan is included

B.  

yes – all projects have financial risks associated with them and senior management must be aware of this

C.  

no – the project initiation should focus on the value-add objectives of the project

D.  

no – the project initiation focuses on the “why” of the project and should present a business case for completing the project

Discussion 0
Question # 12

In Project Management, when would you use aMonte Carlo Analysis?

Options:

A.  

to set a project timeline

B.  

to simulate risks

C.  

to assign a budget

D.  

to work out return on investment

Discussion 0
Question # 13

What information does aCritical Path scheduleprovide to the project team?Select TWO

Options:

A.  

where the project is up to in terms of delivery

B.  

a realistic duration of the project

C.  

the longest and shortest possible durations of the project

D.  

why the project is delayed

Discussion 0
Question # 14

Claude is a manager at Sunnyside Ltd and wishes to run a small project in the procurement department. The project will initiate a small incremental change and will have a short timescale. Because of the size of the project Claude doesn't believe he will need to assign an Executive to the project. Is this correct?

Options:

A.  

yes – executives are only required for long-term projects

B.  

yes – executives are only required for high-profile or far-reaching projects

C.  

no – an Executive should still be assigned and communicate regularly

D.  

no – Claude is the Executive of the project

Discussion 0
Question # 15

A large unpredicted event has occurred in the external environment which has affected Company X. Which of the following change responses would be most appropriate to this situation?

Options:

A.  

incremental–reactive change

B.  

incremental–proactive change

C.  

proactive–transformational change

D.  

reactive–transformational change

Discussion 0
Question # 16

At which stage of the project lifecycle is akick-off meetingusually held and the project is assigned abudget?

Options:

A.  

strategic stage

B.  

initiation stage

C.  

planning stage

D.  

design stage

Discussion 0
Question # 17

Bob is the CEO of a fast-growing electronics company. Bob has a high risk appetite and this is reflected within the company culture. Which of the following would be the best approach to manage risk at this company?

Options:

A.  

tolerate all risks

B.  

hire a project manager with a low appetite for risk to balance out the risk appetite

C.  

set risk thresholds

D.  

base the company’s competitive strategy on the risk appetite

Discussion 0
Question # 18

In what way is a Work Breakdown Structure (WBS) useful to a Project Manager?

Options:

A.  

controls costs

B.  

identifies relevant stakeholders

C.  

ensures the project sticks to timelines

D.  

defines what the project will accomplish

Discussion 0
Question # 19

TheCritical Path Method (CPM)can provide a schedule for a project and demonstrates the longest path of activities to be completed. The critical path provides the longest “path” in terms of what?

Options:

A.  

the largest number of steps that need to be completed

B.  

the highest number of activities that need to be completed

C.  

the longest time all activities will take to complete

D.  

the most complex route to complete the activities

Discussion 0
Question # 20

Graham manages a biscuit-making factory and requires a new piece of equipment. After having his budget approved as a capital-expenditure item, he has looked at different purchasing options. Graham has decided to use a method in which the asset is leased over two years and at the end of the two years the company has the opportunity to own the asset outright via payment of a balloon payment. What type of purchase is this?

Options:

A.  

hire purchase

B.  

finance lease

C.  

operating lease

D.  

asset loan

Discussion 0
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