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NEW QUESTION # 39
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: B
Explanation:
Payback period = Investment Cost ÷ Annual Cash Flow = £10,000 ÷ £2,000 = 5 years.
NEW QUESTION # 40
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?
Answer: B
Explanation:
Consequential loss is considered the most unpredictable and significant, hence it is often the focus of liability limitations.
NEW QUESTION # 41
Which of the following processes for managing change is the most passive?
Answer: D
Explanation:
Education is considered passive as it involves simply providing information rather than enforcing change.
NEW QUESTION # 42
When is the best time to define acceptance criteria for a project?
Answer Options:
Answer: D
Explanation:
Acceptance Criteria should be set before the project starts in the Project Initiation Document (PID) (p.137).
Option A is too late, as the project is already completed.
Option B is iterative, but criteria should be predefined.
Option D is for evaluation, not definition. [P.137]
NEW QUESTION # 43
Which culture type is task-oriented, structured, and uses logic for decisions?
Answer Options:
Answer: D
Explanation:
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]
NEW QUESTION # 44
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