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IAM The Institute of Asset Management Certificate Sample Questions (Q40-Q45):

NEW QUESTION # 40
In what year did the term "asset management" start to be used?

A. 0
B. 1
C. 2
D. 3

Answer: C

Explanation:
The term "asset management" began emerging formally in theearly 1980s, particularly within infrastructure sectors. The IAM recognizes 1980 as the foundational point when structured approaches began to evolve around lifecycle and value-centric practices.
Reference from IAM historical insights:
"The structured use of the term 'asset management' began in the 1980s, focusing initially on infrastructure and utility sectors before becoming more universally adopted." (Source: IAM Historical Overview, Introduction to Asset Management)

NEW QUESTION # 41
Which of the following is the LEAST important factor when considering the decommissioning of assets?

A. Obsolescence and lack of spare parts
B. Changes to legislation
C. Changes in performance levels to deliver the objectives for the organization
D. New technology in the market place
E. Reduction in demand

Answer: C

Explanation:
While performance degradation is important, it is typicallymanaged operationally.Obsolescence, legal requirements, and demand changesare more critical decommissioning drivers due to their irreversible or non-negotiable nature.
Exact Extract from IAM - Asset Management: An Anatomy (v4), Section 3.4.5 - Disposal:
"Key triggers for asset disposal include: obsolescence, unavailability of parts, legislative change, and declining demand."

NEW QUESTION # 42
What is the most effective measure when determining the current health of your assets?

A. Condition assessment
B. Demand forecast
C. Historical maintenance cost
D. Maintenance reports
E. Asset age

Answer: A

Explanation:
Acondition assessmentprovides a direct, objective evaluation of asset health-physical wear, functional capability, risk indicators-which is more accurate than indirect or historical metrics.
Exact Extract from IAM - Asset Management: An Anatomy (v4), Section 4.2.3 - Condition and Performance Monitoring:
"Condition assessment provides the basis for understanding asset health and supports risk-based decision- making."

NEW QUESTION # 43
(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 .......

A. Asset
B. Value
C. Risk
D. Cost

Answer: C

NEW QUESTION # 44
Which of the following best describes the 'useful life' of an asset?

A. Time until the asset is physically non-functioning
B. Time until maintenance costs exceed stakeholder thresholds
C. Time specified by OEM
D. Time until the asset is fully depreciated
E. Period for which the asset can economically perform a required function

Answer: E

Explanation:
Useful lifeis determined not by age, cost, or accounting rules-but by theeconomic abilityof the asset to deliver required service. This includes operational efficiency, cost-effectiveness, and supportability.
Exact Extract from ISO 55000:2014, Clause 3.2.10 - Useful Life:
"The period over which an asset is expected to be usable for its intended purpose and deliver value economically."

NEW QUESTION # 45
......

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