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NEW QUESTION # 13
What is the primary disadvantage of the Payback Analysis method?
Answer Options:
Answer: C
Explanation:
The Payback Method ignores the time value of money (TVM) (p.1.4).
Option A is incorrect-Payback is simple.
Option B is incorrect-it accounts for investment amounts.
Option D is incorrect-Payback can compare options, but lacks long-term financial accuracy. [P.1.4]
NEW QUESTION # 14
XYZ is a large construction organization running five different projects. Each project has a specific type of contract and pricing mechanism.
Your task is to match the correct type of contract and pricing mechanism to each project.
Projects and Descriptions
Project 1
Description: Construction of an apartment block, where XYZ is responsible for both design and construction. Upon completion, ownership is transferred to the client.
Pricing Mechanism: Based on past experience of similar projects.
Project 2
Description: Facilities management for a 6-year period after construction. The budget is constantly adjusted due to industry volatility.
Pricing Mechanism: Budget changes continuously over time.
Project 3
Description: XYZ was involved from an early stage, but does not bear the design risk. The budget resets at the start of each new accounting period.
Pricing Mechanism: The budget is refreshed periodically.
Project 4
Description: XYZ is responsible for certain parts of the design and build, while another company handles other aspects. XYZ is paid upon milestone completion.
Pricing Mechanism: Payment is milestone-based.
Project 5
Description: Construction of a new toll bridge which will be operated by XYZ for the first 6 years post-construction. The pricing includes costs of raw materials, labor, and a profit margin.
Pricing Mechanism: Costs plus profit.
Answer:
Explanation:
NEW QUESTION # 15
Joanne is preparing a contract for the construction of a large shopping center.
The project includes 52 retail units, several restaurants, and a parking facility.
Joanne's company has contracted Construct Ltd under a Turnkey project.
She is using a Gantt chart as a schedule in the contract.
Q: What type of payment mechanism is being used in this contract?
Answer Options:
Answer: B
Explanation:
The correct answer is Activity Schedule (p.60). A Gantt chart is a time-based project planning tool, typically used in Activity Schedule contracts, where payments are tied to the completion of specific tasks. Other payment methods, such as Fixed Lump Sum and Bill of Quantity, do not rely on this approach. [P.60]
NEW QUESTION # 16
Paradigm Digital Services has strict office rules on branding, workspaces, and dress code.
Q: Which aspect of the Cultural Web does this describe?
Answer Options:
Answer: E
Explanation:
Symbols (p.169) include logos, dress codes, and office layout.
Control Systems (C) refer to rules and procedures.
Rituals (D) are traditions and routines.
Power Structure (E) involves decision-making hierarchy. [P.169]
NEW QUESTION # 17
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 # 18
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