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Your Question
Ans
1 D Identify the example that would not usually be considered a project.
a) Building a house
b) Developing a computer software application program
c) Hosting a wedding reception
d) Manufacturing automobiles

2 D According to the authors, this organization has played a significant role in the
development of techniques for project management.
a) Lucent Technologies
b) IBM
c) ANSI
d) The military

3 C Projects often interact with other projects being carried out simultaneously within the
organization and these interactions take the form of competition for scarce resources
between project. This is an example of project

a) importance
b) uniqueness
c) interdependencies
d) performance

4 A deterministic scenario is one with no possibility of an alternate

outcome.

5 D Which of the following is not one of the authors' four part agreement for partnering?
a) Continuous senior management support
b) A method for resolution of problems and disagreements
c) Joint evaluation of the project's progress
d) A set of team building exercises

6 C The key to conflict resolution is to turn a into a

a) win -lose situation, win-win situation
b) win-win situation , win-lose situation
c) conflict, plan
d) frog , prince

7 B The process of coordinating the work and timing of the different groups working on
multidisciplinary teams is called
a) Procurement management
b) Integration management
c) Vertical management
d) Matrix management
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8 C A special approach for determining the project requirements was developed for the
software industry. This approach called has been found to be equally useful
for both outside and internal clients and for non-software projects.
a) Concurrent engineering
b) Requirements formulation
c) Value engineering
d) Progressive elaboration

9 C In a Type 2 project, the so-called planning problems usually result from

a) An inability to solve the project's technical problems

b) An inability to plan unknown unknowns
c) A failure to define the mission carefully and get the client's acceptance
d) A failure to handle deviations from plan

10 B All of the following are advantages that favor use of weighted scoring models except

a) Multiple objectives can be considered

b) Decision makers are compe lled to stick with the decision once it has been made
c) The models can easily be adapted to changes in managerial philosophy
d) They can help avoid a short-term focus on profitability
11 With respect to project goals, early in the project I~ecycle the project team should be
focused on HOW TO ACHIEVE THE REQUIRED PERFORMANCE.
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12 C The seven attributes that characterize a project are:

a) Purpose, repetition, interdependencies, consistency, uncertainty, conflict, lifecycle

b) Lifecycle, schedule, cost, uncertainty, independence, uniqueness, purpose
c) Performance, resources , uniqueness, conflict, interdependencies, importance,
lifecycle
d) Purpose, lifecycle, conflict, certainty, independence, performance, consistency

13 D Identify the example that would not usually be considered a project.

a) Building a house
b) Developing a computer software application program
c) Hosting a wedding reception
d) Manufacturing automobiles
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14 B The two basic types of project selection models identified in the text are

a) Biased and unbiased

b) Numeric and nonnumeric
c) Easy and difficult
d) Numeric and qualitative

15 D According to the authors, the analytic method , when applied to systems, focuses on

a) Assembling the components of a system into an integrated package

b) Building an array of individually designed and manufactured components
c) Calculating the cost and schedule requirements
d) Breaking the components of a system into smaller and smaller elements

16 The general objective of a _ PARETO-OPTIMAL_ solution to conflict is to find a

solution such that no party can be made better off without making another party worse
off by the same amount or more.

17 A Identify the statement that is not a major disadvantage of placing a project within the
pure project organization .

a) The project manager has full line authority over the project
b) Projects duplicate effort because resources are not shared across projects
c) Projects attempt to stockpile resources
d) Policies and procedures of the organization are inconsistently used and enforced

18 In the past decade or so, a new kind of organization structure has appeared in growing
numbers. It is referred to as - PROJECT ORGANIZATION AKA "ENTERPRISE
PROJECT MANAGEMENT"

19 A According to the authors, the nature of negotiation as it applies to project management

is the realization that few of the conflicts arising in projects have to do with

a) Whether or not the task will be done

b) The precise design of the deliverable
c) How the design will be achieved
d) Who will do the work, when , and at what cost.
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20 A According to the authors, project managers must have , which is possessing

enough technical abilities to direct the project.

a) Technical credibility
b) Managerial credibility
c) Negotiation skill
d) Drive to complete the task

21 C Resources initially budgeted for a project are frequently for the task, partly
because of natural optimism by the proposer about how many resources are needed .

a) sufficient
b) delayed
c) insufficient
d) aggravated

22 C One of the major problems project managers have with creating a project team is
coming up with adequate human resources. One way this commonly happens is by

a) hiring employees fired by other departments

b) training unskilled immigrants in project skills
c) borrowing employees from other functional departments
d) demoting executive board members

23 D Most of the time spent by a project manager is

a) attending technical workshops

b) overseeing the workforce
c) filing paperwork
d) communicating

24 The project manager's responsibility to the project and to the client is met by ensuring
that the INTEGRITY of the project is preserved in spite of confiicting demands
made by stakeholders.

25 During the buildup stage of a project lifecycle, _ SCHEDULE _ _ is the dominant

goal of many project managers.

26 During the final or phaseout stage of the project lifecycle, _ PERFORMANCE_ is the
dominant goal of many project managers.
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27 A The drawback of the model is that it fails to consider cash flows obtained
once the initial investment has been recovered.

a) Payback period
b) Average rate of return
c) Discounted cash flow
d) Profitability index

28 C If the NPV for a project is < 0, it indicates that the project will

a) Report a profit loss

b) Report a profit gain
c) Fail to cover its required rate of return
d) Fail to generate cash inflows

29 C Scoring models are used to overcome this disadvantage of profitability models.

a) Inability to account for the time value of money

b) Inability to account for project results beyond the payback period
c) Inability to account for multiple decision criteria
d) Inability to account for cash flow

30 The _MANHATTAN-project is generally credited with beginning the era of modern

project management.

31 An important implication of the project lifecycle concept is that a project will resist
TERMINATION of its existence.

32 The shape of cumulative progress in a conventional project lifecycle is best described

using a graph called the_ PROJECT LIFE CYCLE_ .

33 8 The military uses the term to refer to an exceptionally large, long-range

objective that is broken down into a set of projects.

a) Task
b) Program
c) Subproject
d) Campaign
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34 C The most crucial attribute of a project is that it must be important in the eyes of

a} The project team

b) The stakeholders
c) Senior management
d) The project manager

35 D The authors identify four parties-at-interest or stakeholders in any project. These

stakeholders are

a} Client, functional manager, sponsor, user

b) Client, sponsor, public, investors
c) Client, functional manager, decision makers, interveners
d) Client, parent organization, project team , public

36 C The pattern of progress observed during the project lifecycle is often explained by

a} The changing levels of resources used during successive stages of the project
lifecycle
b) A bounded marginal rate of return
c) Siow-rapid-siow progress
d) The principle that work expands to fill the allotted time

37 In a project portfolio, a disruptive technology that is known to the industry would serve
as an example of a _ BREAKTHROUGH_ project.

38 B The Astebro study (2004) of R&D projects found that all the characteristics below were
excellent predictors of project commercial success except

a} Technological opportunity
b) Managerial support
c) Expected profitability
d) Development risk

39 What is the hurdle rate?

REQUIRED RATE OF RETURN AND HURDLE RATE EQUALS THE MARKET

RATE .
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40 What is the relationship between the hurdle rate and the IRR with regard to project
selection criteria?

Internal Rate of Return provides a simple 'hurdle rate', whereby any projecl should be
avoided if the cost of capital exceeds this rate. Project acceptance: Accept a project if
IRR > hurdle rate.

41 D problems are comparatively rare during project phaseout because most

have been solved or bypassed earlier.

a) Resource
b) Schedule
c) Authority
d) Technical

42 A measurement that is taken by reference to an ex1ernal standard is said to be an

OBJECTIVE measurement.

43 A data source is said to be - RELIABLE if repetitions of a measurement

produce results that vary from one another by less than a pre-specified amount.

44 A If a resource conflict arises between two high-priority projects, precedence is typically

given to the project with the

a) Earliest due date

b) Fastest completion time
c) Biggest revenue stream
d) Lowest cost to complete

45 D During project formation , the organizational structure selected will have a major impact
on the ways in which conflicts are handled . Lack of clarity about the relative
power/i nfluence/authority of the PM and the functional managers is a major
component of all conflicts involving

a) Technical decisions
b) Resource allocation
c) Technical decisions and scheduling
d) Technical decisions, resource allocation , and scheduling
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46 C Personality confiicts during project Phase-out are often caused by

a) Pressure to complete the project

b) Anxiety about leaving the project
c) Pressure to complete the project and anxiety about leaving the project
d) Distribution of expenses charged to the project

47 During initial project planning , activities are identified and sorted . In completing this
process, each level in the hierarchy should limit the number of activities to a range
between TWO TO TWENTY

48 A(n) ORGANIZATIONAL CHART displays the organizational units responsible for

each of the various work elements in the WBS.

49 The major tool that a project manager uses during the planning phase is called the
WBS

50 _HIERARCHIAL PLANNING_is an approach that breaks the planning task down into
the activities that must be done in each managerial level of the organization. Typically,
the upper level sets the objectives for the next lower level

51 EARNED VALUE _ is a measure of project progress frequently related to the

planned cost of tasks accomplished .

52 C Identify the statement that is not a major advantage of placing a project in the matrix
approach .

a) A single individual, the project manager, takes responsibility for managing the
project
b) The project will have access to representatives from the administrative units of the
parent firm
c) The division of authority between the project manager and the functional managers
is complex
d) There is less anxiety among team members about what will happen to them when
the project is completed

53 D Identify the statement that is not a major disadvantage of placing the project in the
matrix approach .

a) The balance of power between stakeholders is delicate

b) Balancing the demands of competing projects using shared resource pools is
complicated
c) The principle of unity of command is violated
d) The project manager takes responsibility for managing the project
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54 C A major purpose of the project management office should be to serve as

a) Clerical support
b) Disaster recovery support
c) The critical link between strategic management and project management in the
organization
d) Maintain the project management library

55 C The project manager must make trade-offs between project progress and process.
Conceptually, this involves trade-offs between the functions .

a) Technical and managerial

b) Schedule and cost
c) Performance and schedule
d) Cost and perfomnance

56 B According to the authors, a Type 1 project is

a) Well understood but not routine

b) Well understood and routine
c) Not well understood and not routine
d) Not well understood but routine

57 A _ PROJECT_ is a temporary endeavor undertaken to create a unique product or

service.

58 C During the buildup phase the order of importance of the project goals is

a) Schedule, performance, cost

b) Cost, schedule, performance
c) Schedule, cost, perfomnance
d) Cost performance, schedule

59 C Earned value is based on the concept that the percentage of project completion is
closely correlated with

a) Th e project baseline
b) The use of resources
c) Cost or the use of resources
d) Final assembly of the output
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60 C A project selected using the sacred cow model will be maintained until successfully
completed or until

a) The project exceeds its budget

b) The project falls behind schedule
c) The boss recognizes the project as a failure and terminates it
d·) The project manager is term inated
61 A Firms usually have two or more projects and th is collection of projects is referred to as

a) a portfolio
b) initiation
c) a program
d) a stochastic model

62 A Identify the attribute that is not normally associated with the job of functional manager.

a) The functional manager is usually a generalist in the area being managed

b) The functional manager is responsible for deciding what resources will be devoted
to accomplishing the task
c) The functional manager is administratively responsible for deciding how something
will be done
d) The functiona l manager is responsible for deciding who will do the work

63 0 According to the authors, three major questions face the project manager with respect
to synthesizing the requirements of a project. Identify the item that is not listed as one
of the three major questions.

a) What needs to be done?

b) Who will actually do the work of the project?
c) When must it be done?
d) How will the required resources be obtained?

64 C The is a portion of the project plan detailing the activities, their schedules,
and resources , including personnel.

a) Risk management plan

b) Quality management plan
c) Action plan
d) Procurement plan
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65 D This element of the project plan contains a brief description of the procedure to be
followed in monitoring , collecting , storing, and evaluating the history of the project.

a) Schedules
b) Resources
c) Personnel
d) Evaluation methods

66 B is the tendency for the project objectives to be changed with little or no

discussion with other parties actively engaged in the project.

a) Scope reference
b) Scope creep
c) Effectiveness
d) Hierarchical planning

67 The _ WORK STATEMENT provides a description of a task that defines all

the work req uired to accomplish it, including inputs and desired outputs.

68 The CONTROL CHART

- is a graph showing how a statistic is changing over
time compared to its average and selected control limits.

69 VALUE ENGINEERING is an approach used in systems integration when

the relevant cost trade-offs can be estimated . It represents the simple and consistent
use of cost-effectiveness analysis to achieve the cost objectives for system integration

70 D Identify the statement that is not a major disadvantage of placing a project within a
functional element of the parent organization .

a) There is a tendency to suboptimize the project

b) The client is not the primary focus of activity in the function
c) The motivation of people assigned to the project tends to be weak
d) The functional division contains the normal path of advancement for individuals
whose expertise is in the functional area

71 B When dealing with conflict between parties, it is recommended to to

avoid the conflict becoming interpersonal.

a) avoid the situation in order

b) carefully define the substantive problem
c) leisurely discuss the issue
d) focus on interests
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72 The structure of a society is determined by its _ MEANS OF PRODUCTION USED IN

THAT SOCIETY

73 The laws of the nation are often a product of the nation's _LAWS_.

74 Participative management may be difficult to practice in societies with highly structured

- SOCIAL CLASSES_

75 B The is also called the benefit-cost ratio .

a) Q-sort method
b) profitability index
c) internal rate of return
d) payback period

76 D Project proposals should include all of the following except:

a) a section describing the past experience of the proposing group

b) an executive summary
c) a description of the ability of the proposer to supply the routine facilities , equipment,
and skills needed during the project
d) a list of the top executives in the proposing firm

77 A The project to construct a highway is unique because

a) The characteristics of terrain will change

b) The consistency of asphalt will vary
c) Different laborers will be used to build various segments of the highway
d) Subcontractors will be used to perform some of the work

78 B Which of the following are not trends we see in project management?

a) increase in virtual projects

b) decreasing use of project managers
c) achieving strategic goals
d) achieving routine goals

79 C In a research study Shenhar, Levy and Dvir have concluded that project success has
four dimensions. Which of the following is not one of these four?

a) Opening new opportunities for the future

b) project effectiveness
c) impact on customer
d) business impact on organization
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80 B Project managers should view politics as

a) A barrier to successful project management

b) The mechanism by which the people in organizations make decisions
c) Win-lose competitions
d) The mechanism used to sustain projects selected using non-financial selection
models

81 When the decision maker's information is not complete, he/she will have to make a
decision under conditions of UNCERTAINTY
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82 C As sub-elements of a task, these need to be accomplished to achieve the

objectives of the task.

a) subprojects
b) program s
c) work packages
d) levels of effort

83 The chance that outcomes will not turn out as planned is called _RISK

84 According to the hierarchical nomenclature described in the text, projects can be

decomposed into _TASKS

85 Measurements used in project selection models must be _ QUANTITATIVE_, reliable ,

and valid .

86 The set of documents submitted when evaluating a project is referred to as the

- PROJECT PROPOSAL-

87 B In the systems approach to design , one organization would have to take responsibility
for

a) Manufacturing everything in the system

b) The integrity of the project design
c) The integrity of the subcontractors
d) Product warranties
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88 B The process of dealing with uncertainties in projects has come to be known as

a) Scope management
b) Risk management
c) Quality management
d) Procurement management

89 When the major focus of a project must be on the in-depth application of a technology
rather than on minimizing cost, meeting a specific schedule or achieving speedy
response to change, the JUNCTI ONAL_ organizational form is apt to be the form of
choice.

90 A One of the challenges during the planning process is to ensure that managers do not
mix

a) Outcomes (events) with the specific tasks (activities) needed to produce them
b) Milestones with completion dates
c) Requirements with expectations
d) Control limits with specifications

91 C The scope of a project includes the time and cost required to complete the project to
the customer's

a) scope plan
b) control plan
c) satisfaction
d) process

92 0 According to the authors any project plan must contain all of the following except:

a) Evaluation methods
b) Contractual aspects
c) Resources
d) Potential problems

93 The SUBOPTIMIZATION_ approach to design would require that the engine,

airframe, and weapons systems of an airplane be designed as a unit. The attempt is
to optimize the composite system rather than the parts.
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94 B In the opinion of the authors which of the following is essential to effective risk analysis

a) Good risk tools

b) A system memory
c) A risk management team
d) Risk analysis software

95 B One of the main technical problems faced by the project manager is meeting
without compromising performance.

a) people
b) schedule and cost goals
c) confiict goals
d) cost and confiict goals

96 C According to the authors the seventh Risk Management sub-process should be:

a) Create a risk management strategy

b) Create a risk modeling system
c) Create and maintain a risk management data bank
d) Create and maintain a risk quantification system

97 A This member of the project team is in charge of product design and development and
is responsible for functional analysis, specifications, drawings, cost estimates,
quality/reliability, engineering changes, and documentation.

a) Systems architect
b) Manufacturing engineer
c) Project controller
d) Support services manager

98 C If the project manager controls when and what people do while the functional
managers control who will be assigned to the project and what technology will be
used , the organizational form is probably being used .

a) Projectized
b) Pure project
c) Matrix
d) Weak project

99 The _ POSITIONAL NEGOTIATION_ approach to negotiation states immediate wants

on the assumption that the environment is static.

100 The total level of confiict in the project lifecycle is highest during the _ BUILD
UP staQe.