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IAM The Institute of Asset Management Certificate Sample Questions (Q53-Q58):
NEW QUESTION # 53
Value based on AM is ......
Answer: D
Explanation:
Asset Management is inherently value-focused. Its core purpose isto deliver valuethrough assets in alignment with organizational goals. This value is not simply financial-it includes social, environmental, and performance considerations.
* Option Ais correct because value creation is the core tenet.
* Option B(waste elimination) is more aligned with Lean thinking than AM itself.
* Option CandDmisrepresent the concept; value is not based on assets alone, but how assets are managed to generate value.
Exact Extract from IAM - Asset Management: An Anatomy (v4), Section 1.4.1 - Principle 1: Value:
"Assets exist to provide value. Asset management does not focus on the assets themselves, but on the value that assets can provide to the organization."
NEW QUESTION # 54
What is NOT usually considered in the decision to decommission and dispose of assets?
Answer: C
Explanation:
Depreciated valueis a financial accounting figure and is not a strong indicator of whether an asset should be decommissioned. Operational, legal, and environmental factors carry more weight.
Exact Extract from IAM - Asset Management: An Anatomy (v4), Section 3.4.5 - Disposal:
"Factors include residual value, reuse options, legal compliance, and environmental impact. Financial book value is rarely a deciding factor."
NEW QUESTION # 55
(Exposure to) the possibility of loss, injury, or other adverse or unwelcome circumstance; a chance or situation involving such a possibility, is the definition of .......
Answer: B
NEW QUESTION # 56
Capital Investment Decision-Making comprises the processes to .....
Answer: C
NEW QUESTION # 57
The term optimizing describes:
Answer: C
Explanation:
Optimizingis a core concept in asset management. It refers to establishing a compromise between performance, cost, and risk-across the asset lifecycle. This balancing act is based on data-informed decision- making and scenario analysis.
Exact Extract from IAM - Asset Management: An Anatomy (v4), Section 4.5 - Decision-Making:
"Optimization is the process of determining the best value compromise between conflicting priorities such as cost, risk, and performance."
NEW QUESTION # 58
......
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