L4M7: Whole Life Asset Management

Review 60 L4M7 practice questions with answer explanations and community insights.

Question 1

Under a Hire Purchase Agreement, ownership is transferred to the hirer…

  1. at the beginning of the contract
  2. when all instalments have been paid
  3. when half the instalments have been paid
  4. if the items are damaged by the hirer

Question 2

Earl & Duke Corp has several organization business goals. One of these goals sets out the need to have a sustainable financial position and promote economic prosperity. This follows the triple bottom line framework. Which one of the framework’s elements does this business goal highlight?

  1. Profit
  2. Performance
  3. Prioritization
  4. People

Question 3

An operations director (OD) is becoming concerned by the increasing volumes of inventory items held in storage. They initiate a review that shows an increasing volume of finished goods that remain in storage after production. Further investigation reveals that demand for these finished goods is now zero. Which of the following describes the issue identified by the OD?

  1. Obsolescent stock
  2. Damaged stock
  3. Stock shortages
  4. Stock lead times

Question 4

Contracts for hire is a method for renting an item from a business that exists to provide items for use from time to time. A contract for hire has which of the following features?

  1. The person hiring the item contracts to use the item for a stated period, at an agreed rate per period on agreed terms
  2. Ownership of the item transfers to the person hiring the item at the end of the agreed hire period
  3. A contract for hire is an agreement for the person hiring out the item to sell it to the person hiring the item
  4. At the end of the hire period, the person hiring the item keeps possession and lends to other customers

Question 5

In a fast-moving consumer goods (FMCG) organization, a site has separate packaging areas for incoming and outgoing food. The incoming packages must be opened and unpacked before any of the food ingredients can be sorted for distribution. Production line workers run the risk of severe hand strains and knife-related injures if the box cutting is done manually. Which of the following can eliminate any potential risk of injury to the production line workers while having the ability to increase the throughput?

  1. Automated packaging systems and robotics
  2. Bar coding system
  3. Radio frequency identification
  4. Warehouse management system