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:
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]
Cyril Engineering entered into a contract with Dojo Ltd for electrical engineering services to a power station.
The contract was successful for two years, but Cyril Engineering failed to fulfill obligations recently.
Q: What is this situation known as?
Answer Options:
Failure to meet contractual obligations is classified as Default (p.123).
Consequential Loss (A) refers to indirect financial loss due to contract failure.
Damages (B) are legal remedies for breaches.
Direct Loss (D) relates to immediate financial impact, but default is the correct term for a failure to meet obligations. [P.123]
Glitter Kitten Ltd CEO applies the Payback Analysis for expansion.
Investment: 50m
Annual returns: 10m
Q: What is the payback period?
Answer Options:
Payback period formula:
Investment (50m) Annual inflow (10m) = 5 years. [P.1.4]
What is the primary disadvantage of the Payback Analysis method?
Answer Options:
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]
Foxglove Ltd has a rigid hierarchy, standardized work, and strict procedures. Employees know their roles and work quality is high.
Q: What type of culture does Foxglove Ltd have?
Answer Options:
This describes a Role Culture (p.170-175):
Clear job roles, structured hierarchy, and predictable work patterns.
Task Culture (A) focuses on project-based teams.
Power Culture (C) is centralized authority.
Person Culture (D) emphasizes individual autonomy. [P.170-175]
Catrice
1 days agoGilberto
8 days agoTamala
17 days agoEdward
1 months agoGlenn
1 months agoJules
2 months agoOlene
2 months agoMozelle
2 months agoMicaela
3 months agoDorothy
3 months agoLelia
3 months ago