Project Management - Final Exam Practice
This is a collection of the quiz questions from all the quizzes so far, randomly selected. The time limit is 1 hour (60 minutes) and there are 70 total questions. This will (likely) be similar to the conditions of the actual final, but it is by no means an official practice test. This is simply the way that helps me study, so I thought it could help some of you as well.
- 1.
A conventional project life cycle is a(n) _____ curve.
- A.
Bell-shaped
- B.
S-shaped-curve
- C.
Steep
- D.
Low
Correct Answer
B. S-shaped-curveExplanation
A conventional project life cycle is represented by an S-shaped curve. This curve illustrates the progression of a project over time, with slow progress at the beginning, followed by a period of rapid growth, and then tapering off towards the end. This curve is commonly observed in projects as they start slowly, gain momentum in the middle phase, and then slow down as they near completion. The S-shaped curve is a typical pattern that reflects the stages and progress of a project from initiation to closure.Rate this question:
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- 2.
According to the authors, the prime objectives of PM are _____
- A.
Quality, Scope, Schedule
- B.
Scope, Cost, Time
- C.
Customer satisfaciton, Budget, Schedule
- D.
Cost, Quality, Customer Satisfaction
Correct Answer
B. Scope, Cost, TimeExplanation
The prime objectives of Project Management (PM) according to the authors are scope, cost, and time. This means that the main goals of PM are to define and manage the project scope, control and optimize the project costs, and ensure that the project is completed within the specified time frame. These objectives are crucial for the successful execution of any project, as they help in delivering the desired outcomes while managing resources effectively and efficiently.Rate this question:
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- 3.
The largest amount of effort applied to a project is during its _____
- A.
Conception
- B.
Evaluation and Termination
- C.
Planning, Scheduling, Monitoring, and Control
- D.
Conception and Selection
Correct Answer
C. Planning, Scheduling, Monitoring, and ControlExplanation
The correct answer is Planning, Scheduling, Monitoring, and Control. This phase of a project involves the most effort because it includes all the activities necessary to plan and organize the project, create a schedule, monitor progress, and control any deviations from the plan. During this phase, the project team determines the scope, objectives, and deliverables of the project, allocates resources, creates a timeline, and establishes a system for monitoring and controlling the project's progress. This phase is crucial for ensuring that the project is executed efficiently and effectively.Rate this question:
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- 4.
In a normal project life cycle, as work progresses, uncertainty about the expected outcome should _____
- A.
Increase
- B.
Be eliminated
- C.
Become a constant
- D.
Decrease
Correct Answer
D. DecreaseExplanation
In a normal project life cycle, as work progresses, uncertainty about the expected outcome should decrease. This is because as the project moves forward, more information is gathered, risks are identified and mitigated, and the team gains a better understanding of the project requirements and objectives. This increased knowledge and clarity help to reduce uncertainty and increase confidence in achieving the desired outcome.Rate this question:
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- 5.
The stretched-S life cycle pattern observed is usually a result of the _____
- A.
Changing levels of resources
- B.
Principle that work expands to fill the time available
- C.
Changing attitudes of the project team
- D.
Difficulty in completing the activities of the project
Correct Answer
A. Changing levels of resourcesExplanation
The stretched-S life cycle pattern observed is usually a result of the changing levels of resources. This means that as the project progresses, the availability of resources may fluctuate, causing delays or extensions in the project timeline. This pattern indicates that the project may experience periods of increased resource allocation and productivity, followed by periods of resource scarcity and slower progress. This fluctuation in resource levels can impact the overall duration and completion of project activities.Rate this question:
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- 6.
Having only partial of no information about the situation or outcome is called _____
- A.
Effort
- B.
Risk
- C.
Cluelessness
- D.
Uncertainty
Correct Answer
D. UncertaintyExplanation
Uncertainty refers to a state of not having complete or sufficient information about a situation or outcome. It is characterized by a lack of clarity or predictability, making it difficult to make confident decisions or judgments. Uncertainty can arise in various contexts, such as in business, finance, or personal life, and it often requires individuals to weigh potential risks and evaluate available clues or evidence to navigate through uncertain circumstances.Rate this question:
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- 7.
A _____ in a temporary endeavor undertaken to create a unique product or service.
- A.
Sub-process
- B.
Task
- C.
Project
- D.
Program
Correct Answer
C. ProjectExplanation
A project is a temporary endeavor undertaken to create a unique product or service. It is a specific task or set of tasks that have a defined beginning and end, and it is typically undertaken to achieve a specific goal or objective. Projects are different from sub-processes and tasks as they are more comprehensive and involve multiple activities and resources. Programs, on the other hand, are a collection of related projects that are managed together to achieve strategic objectives. Therefore, the correct answer is project.Rate this question:
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- 8.
Individuals or groups with a special interest in a project are called _____
- A.
Stakeholders
- B.
PM's
- C.
Leaders
- D.
Directors
Correct Answer
A. StakeholdersExplanation
Individuals or groups who have a special interest in a project, such as those who will be affected by its outcome or those who have invested resources in it, are referred to as stakeholders. They have a stake in the project's success and can significantly impact its development and outcome. The term "PM's" refers to project managers, who are responsible for overseeing the project's execution. "Leaders" and "Directors" are generic terms that do not specifically refer to individuals or groups with a special interest in a project.Rate this question:
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- 9.
The desired outcomes or results of a project are called _____
- A.
Subgroups
- B.
Deliverables
- C.
Work Packages
- D.
Subprojects
Correct Answer
B. DeliverablesExplanation
Deliverables are the desired outcomes or results of a project. They are the tangible or intangible products, services, or results that need to be produced and delivered to meet the project objectives. Deliverables can be documents, reports, software, prototypes, or any other tangible or intangible items that are expected to be completed and handed over to the stakeholders. They are essential for measuring the progress and success of a project and ensuring that the project goals are achieved.Rate this question:
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- 10.
Projects in an organization often have to compete with other projects for resources. This is an example of project _____
- A.
Breakdown
- B.
Bottleneck
- C.
Malfunctioning
- D.
Interdependencies
Correct Answer
D. InterdependenciesExplanation
Projects in an organization often have to compete with other projects for resources because they are interdependent on each other. This means that the success or failure of one project can directly impact the success or failure of other projects within the organization. Therefore, the need to allocate resources efficiently and prioritize projects becomes crucial in order to manage these interdependencies effectively.Rate this question:
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- 11.
Which of these would normally not be considered a project.
- A.
Developing computer software
- B.
Hosting a wedding
- C.
Building a house
- D.
Assembly line manufacturing of bottles
Correct Answer
D. Assembly line manufacturing of bottlesExplanation
Assembly line manufacturing of bottles would normally not be considered a project because it is a repetitive and standardized process that is part of a larger production system. Unlike the other options, which involve unique and specific goals, the assembly line manufacturing of bottles is a continuous operation aimed at mass production. It does not typically require the same level of planning, coordination, and distinct deliverables that are associated with a project.Rate this question:
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- 12.
An important implication of the project life cycle concept is that a project will resist _____ of its existince.
- A.
Logging
- B.
Extending
- C.
Termination
- D.
Completion
Correct Answer
C. TerminationExplanation
The project life cycle concept suggests that every project has a defined beginning and end. Therefore, an important implication of this concept is that a project will eventually come to an end or termination. This implies that projects are not meant to last indefinitely and that there is a planned point at which the project's objectives are achieved, and it is no longer necessary to continue.Rate this question:
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- 13.
PM's have to make appropriate _____ in order to balance the competing demands of stakholders and scope, cost and time.
- A.
Trade-offs
- B.
Weights
- C.
Guidelines
- D.
Tasks
Correct Answer
A. Trade-offsExplanation
PM's have to make appropriate trade-offs in order to balance the competing demands of stakeholders and scope, cost, and time. This means that project managers need to make decisions and compromises between different aspects of the project in order to achieve a balance and meet the overall objectives. Trade-offs involve making choices and prioritizing certain aspects over others, considering the impact on stakeholders and the project's constraints. This allows project managers to manage resources effectively and achieve the desired outcomes within the given constraints.Rate this question:
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- 14.
The typical attributes that define a project are _____
- A.
Purpose, repetition, interdependencies, consistency, and uncertainty
- B.
Unique, one-time occurance, finite time frame, important, limited resources, conflict, and interdependencies
- C.
Purpose, lifecycle, conflict, certainty, independence, performance, finite duration
- D.
Lifecycle, schedule, cost, uncertainty, independence, uniqueness, and demand
Correct Answer
B. Unique, one-time occurance, finite time frame, important, limited resources, conflict, and interdependenciesExplanation
The correct answer is "Unique, one-time occurrence, finite time frame, important, limited resources, conflict, and interdependencies." These attributes are commonly associated with projects. Projects are unique because they are temporary endeavors with specific objectives that are not repetitive. They have a defined start and end date, which gives them a finite time frame. Projects are important because they are undertaken to achieve specific goals or deliverables. Limited resources, such as time, budget, and personnel, are allocated to projects. Projects often involve conflict and interdependencies, as different stakeholders may have competing interests and project activities are often interconnected.Rate this question:
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- 15.
The _____ of a the project team is a crucial but instated element of ancillary trade-offs that the PM must consider.
- A.
Task
- B.
Health
- C.
Effort
- D.
Plan
Correct Answer
B. HealthExplanation
The health of a project team is a crucial but often overlooked element of ancillary trade-offs that the PM must consider. The well-being and physical condition of team members directly impact their productivity, motivation, and ability to deliver quality work. Neglecting the health aspect can lead to increased absenteeism, decreased morale, and lower overall project performance. Therefore, it is important for project managers to prioritize the health of their team members and implement measures to promote a healthy work environment.Rate this question:
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- 16.
As sub-elements of a task, these _____ need to be accomplished to achieve the objectives of the task.
- A.
Levels of effort
- B.
Subprojects
- C.
Work Packages
- D.
Programs
Correct Answer
C. Work PackagesExplanation
Work Packages are sub-elements of a task that need to be accomplished in order to achieve the objectives of the task. They are specific and manageable units of work that are assigned to individuals or teams. By breaking down a task into work packages, it becomes easier to allocate resources, track progress, and ensure that all necessary activities are completed. Thus, Work Packages are the most suitable option among the given choices to describe the sub-elements of a task.Rate this question:
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- 17.
Which of the following is not one of the four dimensions of project success?
- A.
Business impact on the company
- B.
Number of people working on the project
- C.
Impact on the customer
- D.
New opportunities for the future
Correct Answer
B. Number of people working on the projectExplanation
The number of people working on the project is not one of the four dimensions of project success. The four dimensions of project success typically include business impact on the company, impact on the customer, and new opportunities for the future. The number of people working on the project is not a direct measure of project success, as success is determined by the outcomes and results achieved, rather than the size of the project team.Rate this question:
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- 18.
When done properly, Project Management begins with _____
- A.
The initial concept for the project
- B.
Scope definition
- C.
Stakeholder interviews
- D.
Budget estimation
Correct Answer
A. The initial concept for the projectExplanation
Project Management begins with the initial concept for the project because this is the starting point where the idea or need for the project is identified. It is crucial to have a clear understanding of the project's purpose and objectives before proceeding with other project management activities such as scope definition, stakeholder interviews, and budget estimation. Without a solid initial concept, it would be difficult to effectively plan, execute, and control the project.Rate this question:
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- 19.
The project to construct a highway is unique because _____
- A.
The terrain will be different for different segments
- B.
Different types of workers will be used to build different segments
- C.
The consistency of the concrete will vary for different segments
- D.
Different people manage different sections of the highway.
Correct Answer
A. The terrain will be different for different segmentsExplanation
The project to construct a highway is unique because the terrain will be different for different segments. This means that the construction team will have to adapt their methods and techniques based on the specific characteristics of each segment of the highway. It also implies that the challenges and obstacles faced during construction will vary across different sections of the highway, making it a complex and diverse project.Rate this question:
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- 20.
The military uses the term _____ to refer to an exceptionally large, long-range objective that is broken down into a series of projects.
- A.
Campaign
- B.
Sub-program
- C.
Program
- D.
Task
Correct Answer
C. ProgramExplanation
In the military, a "program" is used to refer to an exceptionally large, long-range objective that is broken down into a series of projects. This term is commonly used to plan and execute complex operations that require multiple tasks and resources. A program helps in organizing and managing the different projects involved in achieving a specific goal, ensuring coordination and efficiency in military operations.Rate this question:
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- 21.
Which of the following project selection models focuses strongly on the long-term success of the firm?
- A.
Profitability Index
- B.
Product Line Extension
- C.
Sustainability Model
- D.
Competitive Necessity
Correct Answer
C. Sustainability ModelExplanation
The sustainability model focuses on the long-term success of the firm by considering environmental, social, and economic factors. It takes into account the impact of the project on the environment, the well-being of society, and the financial viability of the firm in the long run. This model aims to ensure that the project not only generates profits but also contributes to the overall sustainability and growth of the organization.Rate this question:
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- 22.
Project selection models should include which of the following?
- A.
Alighment with organization goals, ease of implementation, reasonable cost of implementation
- B.
HR department approval
- C.
Upper management support
- D.
Finance department approval
Correct Answer
A. Alighment with organization goals, ease of implementation, reasonable cost of implementationExplanation
Project selection models should include alignment with organization goals, ease of implementation, and reasonable cost of implementation because these factors are crucial in determining the success and feasibility of a project. Ensuring that a project aligns with the organization's goals ensures that it contributes to the overall strategy and objectives. Ease of implementation considers the resources, skills, and time required to execute the project. Reasonable cost of implementation ensures that the project can be carried out within the allocated budget. HR department approval, upper management support, and finance department approval are important stakeholders' considerations but are not necessarily part of the project selection model.Rate this question:
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- 23.
Which of the following is NOT a type of nonnumeric model?
- A.
Payback period
- B.
The sacred cow
- C.
Operating necessity
- D.
The product line extension
Correct Answer
A. Payback periodExplanation
The payback period is a financial metric used to determine the length of time it takes for an investment to generate enough cash flows to recover the initial investment. It is a type of nonnumeric model that focuses on the financial aspect of a project. On the other hand, the sacred cow, operating necessity, and product line extension are not financial models, but rather terms used in different contexts. Therefore, the payback period is the correct answer as it does not fit into the category of nonnumeric models.Rate this question:
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- 24.
If the NPV for a project is > 0, it indicates that the project will _____
- A.
Report a profit gain
- B.
Report a profit loss
- C.
Succeed to generate cash inflows
- D.
Be over the hurdle rate
Correct Answer
D. Be over the hurdle rateExplanation
If the NPV for a project is greater than 0, it indicates that the project will generate a positive net present value. This means that the project's cash inflows, discounted to their present value, will exceed the initial investment and any associated costs. Therefore, the project is expected to report a profit gain and be considered financially viable. The hurdle rate refers to the minimum rate of return required by the company or investor, and if the project's NPV is positive, it implies that the project is surpassing this minimum threshold.Rate this question:
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- 25.
Project proposals for outside clients should include all of the following, EXCEPT _____
- A.
A section on the past experience of the proposing group
- B.
A detailed profit and loss calculation of the proposing group
- C.
A general description of the problem
- D.
A description of the proposers ability to supply the facilities needed
Correct Answer
B. A detailed profit and loss calculation of the proposing groupExplanation
Project proposals for outside clients should include a general description of the problem, a description of the proposers' ability to supply the facilities needed, and a section on the past experience of the proposing group. However, a detailed profit and loss calculation of the proposing group is not necessary in a project proposal. This is because the focus of the proposal should be on addressing the client's problem and presenting a solution, rather than providing financial details of the proposing group.Rate this question:
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- 26.
The Weighted Factor Scoring Model has the advantage of:
- A.
Simplicity
- B.
Ease of calculation
- C.
Increased attention to the relative importance of each selection criteria
- D.
Large worldwide use and acceptance
Correct Answer
C. Increased attention to the relative importance of each selection criteriaExplanation
The Weighted Factor Scoring Model allows for increased attention to the relative importance of each selection criteria. This means that when using this model, decision-makers can assign different weights or values to each criterion based on their importance. This helps in ensuring that the decision-making process takes into account the varying significance of different criteria, leading to a more accurate and informed decision.Rate this question:
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- 27.
Project Portfolio Management (PPM) involves participation by:
- A.
The President
- B.
The PM
- C.
The entire project management team
- D.
Stockholders in publicly traded companies
Correct Answer
B. The PMExplanation
Project Portfolio Management (PPM) involves participation by the PM because they are responsible for overseeing and managing the entire project portfolio. The PM is in charge of planning, organizing, and controlling the projects within the portfolio to ensure they align with the organization's strategic goals. They collaborate with the project management team to ensure effective execution and delivery of projects. While the President and stakeholders may have some involvement in decision-making and providing guidance, the PM is the primary driver of PPM activities.Rate this question:
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- 28.
Risk is generally believed to be focused on profits, but:
- A.
About 50% of projects fail financially
- B.
Risk is projects is mainly focused on finishing on time
- C.
Very few projects fail financially
- D.
Uncertainty is in all aspects of the work and present at all stages of PM
Correct Answer
D. Uncertainty is in all aspects of the work and present at all stages of PMExplanation
The correct answer is "Uncertainty is in all aspects of the work and present at all stages of PM." This answer is supported by the statement that "uncertainty is in all aspects of the work," which implies that risk is not solely focused on profits. It also aligns with the statement that "uncertainty is present at all stages of PM," indicating that risk is not only focused on finishing projects on time. Additionally, the answer contrasts with the statement that "very few projects fail financially," suggesting that risk extends beyond financial outcomes.Rate this question:
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- 29.
The _____ is a widely adopted model when making selection decisions on all sorts of projects by putting them in groups.
- A.
Comparative Value
- B.
Comparative Benefits
- C.
Comparative Necessity
- D.
Comparative Sustainability
Correct Answer
B. Comparative BenefitsExplanation
The comparative benefits model is widely adopted when making selection decisions on projects by putting them in groups. This model involves comparing the benefits of different projects and selecting the one with the highest perceived benefits. It allows decision-makers to evaluate the potential advantages and disadvantages of each project and make an informed choice based on their relative benefits.Rate this question:
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- 30.
The disadvantage of the _____ model is that the output is only a relative and subjective measure.
- A.
Window-of-opportunity analysis
- B.
Payback period
- C.
Scoring
- D.
Sacred cow
Correct Answer
C. ScoringExplanation
The disadvantage of the scoring model is that the output is only a relative and subjective measure. This means that the scoring model does not provide an objective or absolute measurement of the performance or value of a particular item or decision. Instead, it relies on the subjective judgment and interpretation of the person or group conducting the scoring. This can introduce bias and inconsistency in the evaluation process, making it less reliable and potentially leading to less accurate decision-making.Rate this question:
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- 31.
_____ is the process of evaluating individual projects or groups of projects, and then choosing some set of them so that the objectives of the parent organization will be achieved.
- A.
Project Selection
- B.
Program Choice
- C.
Non-scoring model
- D.
Operating necessity
Correct Answer
A. Project SelectionExplanation
Project selection is the process of evaluating individual projects or groups of projects and choosing a set of them that align with the objectives of the parent organization. This involves assessing the potential benefits, risks, and feasibility of each project and making a decision based on the organization's goals and priorities. The selected projects are expected to contribute to the overall success and achievement of the organization's objectives.Rate this question:
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- 32.
Common problems in managing projects include which of the following?
- A.
Following specifications
- B.
Satisfying customers
- C.
Making profits
- D.
Staying within budget, time constraints, and scope.
Correct Answer
D. Staying within budget, time constraints, and scope.Explanation
Common problems in managing projects include staying within budget, time constraints, and scope. This means that projects often face challenges in managing their financial resources, meeting deadlines, and ensuring that the project stays within its defined scope. These problems can arise due to various factors such as poor planning, inadequate resources, changes in requirements, or unforeseen obstacles. Successfully managing these aspects is crucial for the overall success of a project.Rate this question:
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- 33.
Effective Project Portfolio Management (PPM) …
- A.
Increased the company ROI
- B.
Minimizes employee turnover
- C.
Should include prjects for various sizes, timeframes, and levels of risk
- D.
Should include 6-12 different projects
Correct Answer
C. Should include prjects for various sizes, timeframes, and levels of riskExplanation
Effective Project Portfolio Management (PPM) should include projects for various sizes, timeframes, and levels of risk. This is because having a diverse portfolio allows the company to balance its investments and mitigate potential risks. Including projects of different sizes ensures that the company is not solely relying on large or small projects, but rather has a mix of both. Similarly, including projects with different timeframes allows for a balance between short-term and long-term projects. Additionally, including projects with varying levels of risk helps spread the company's exposure and reduces the overall risk of the portfolio.Rate this question:
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- 34.
The _____ can use discounted or not discounted cash flows when being calculated.
- A.
Internal Rate of Return
- B.
Profitability Index
- C.
Q-sort method
- D.
Payback period
Correct Answer
B. Profitability IndexExplanation
The profitability index is a financial metric that measures the profitability of an investment by comparing the present value of its expected future cash flows to the initial investment. It can be calculated using either discounted or not discounted cash flows. The index value greater than 1 indicates a profitable investment, while a value less than 1 suggests an unprofitable investment. Therefore, the profitability index is flexible in considering both discounted and non-discounted cash flows to evaluate the profitability of an investment.Rate this question:
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- 35.
Strategic benefits of Project Portfolio Management (PPM) are:
- A.
Difficult to quanitfy
- B.
Clear to a majority of PM's
- C.
Growing as the PMBOK is applied
- D.
Very few
Correct Answer
A. Difficult to quanitfyExplanation
The strategic benefits of Project Portfolio Management (PPM) are difficult to quantify. This means that it is challenging to measure or assign a specific value to the advantages gained from implementing PPM. While the benefits of PPM may be clear to a majority of project managers, they are not easily quantifiable in terms of numbers or specific metrics. However, these strategic benefits are growing as the PMBOK (Project Management Body of Knowledge) is applied, indicating that PPM is becoming increasingly recognized and valued in the project management field. Overall, there are very few strategic benefits that can be easily quantified.Rate this question:
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- 36.
An unweighted 0-1 Factor Model has the advantage of:
- A.
Reducing problems with industry partners
- B.
Increased understanding and agreement within the company
- C.
Simplicity
- D.
Greater organizational flexibility
Correct Answer
C. SimplicityExplanation
An unweighted 0-1 Factor Model has the advantage of simplicity. This means that it is easy to understand and implement, making it more accessible for users. It does not involve assigning weights to different factors, simplifying the analysis process. This simplicity can lead to increased understanding and agreement within the company, as it is easier for stakeholders to grasp and interpret the results. Additionally, the lack of weights allows for greater organizational flexibility, as factors can be added or removed without the need to adjust weightings. Overall, the simplicity of the unweighted 0-1 Factor Model makes it a favorable choice.Rate this question:
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- 37.
For your project, the average net cash flow is $5000 per year into the future, and initial project investment is $100000. The payback period is:
- A.
10
- B.
20
- C.
40
- D.
5
Correct Answer
B. 20Explanation
The payback period is the amount of time it takes for a project to recoup its initial investment. In this case, the initial investment is $100,000 and the average net cash flow per year is $5,000. To calculate the payback period, we divide the initial investment by the average net cash flow per year. In this case, $100,000 divided by $5,000 equals 20. Therefore, the payback period for this project is 20 years.Rate this question:
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- 38.
Successful PM includes which of the following attributes:
- A.
Strongly relates to the organization's strategy, mission and goals.
- B.
Focuses on high risk goals and activities.
- C.
Includes a complex set of methods and multiple stakeholders.
- D.
Address problems outside the company's mission.
Correct Answer
A. Strongly relates to the organization's strategy, mission and goals.Explanation
A successful project manager needs to have a strong alignment with the organization's strategy, mission, and goals. This ensures that the project's objectives are in line with the overall direction of the organization, and that the project's outcomes contribute to the achievement of the organization's mission and goals. By having this alignment, the project manager can effectively prioritize and make decisions that are in the best interest of the organization. It also helps in gaining support and buy-in from stakeholders, as they can see the value and relevance of the project in relation to the organization's overall strategy.Rate this question:
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- 39.
Numeric project selection models generally focus on:
- A.
Management salary stability
- B.
Profits and profitability
- C.
Maintaining stock price and ROI
- D.
Keeping the workforce numbers stable
Correct Answer
B. Profits and profitabilityExplanation
Numeric project selection models generally focus on profits and profitability because these models are designed to evaluate and prioritize projects based on their potential financial returns. By focusing on profits and profitability, organizations can make informed decisions about which projects to invest in, ensuring that resources are allocated to initiatives that have the highest likelihood of generating financial gains. This approach helps organizations maximize their return on investment and make strategic choices that align with their financial goals.Rate this question:
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- 40.
Project Z has a profitability index of 2.0 and a NPV of $5000. Project X has a profitability index of 1.0 and a NPV of $10000. The initial cash investment of project X is:
- A.
Twice that of project Z.
- B.
One half that of project Z
- C.
Four times that of project Z
- D.
Equal to that of project Z
Correct Answer
C. Four times that of project ZExplanation
Based on the given information, Project Z has a profitability index of 2.0 and a NPV of $5000. Project X has a profitability index of 1.0 and a NPV of $10000. The profitability index is calculated by dividing the NPV by the initial cash investment. Since Project Z has a higher profitability index than Project X, it means that the initial cash investment for Project Z is lower than that of Project X. Therefore, the correct answer is that the initial cash investment of Project X is four times that of Project Z.Rate this question:
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- 41.
Which of the following is the most important for success of the project?
- A.
Sufficient financial resources
- B.
A competent team
- C.
A good working environment
- D.
That the PM has the support of upper management
Correct Answer
D. That the PM has the support of upper managementExplanation
The support of upper management is crucial for the success of a project because it provides the project manager with the necessary resources, authority, and guidance to effectively execute the project. With the support of upper management, the project manager can secure sufficient financial resources, build a competent team, and create a good working environment. Without this support, the project manager may face obstacles and challenges that can hinder the project's progress and ultimately lead to failure.Rate this question:
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- 42.
As compared to the functional manager, the PM should more often use what method of problem solving?
- A.
An analytical approach
- B.
A departmental approach
- C.
A systems approach
- D.
His or her positional power
Correct Answer
C. A systems approachExplanation
The PM should more often use a systems approach to problem solving as compared to the functional manager. This is because a systems approach considers the entire project as a complex system with interdependent parts, and focuses on understanding the relationships and interactions between these parts. By taking a systems approach, the PM can identify potential issues and their impacts on the overall project, and develop effective solutions that address the root causes rather than just treating the symptoms. This approach helps in ensuring the project's success by considering the holistic view and promoting integration and coordination among different functional areas.Rate this question:
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- 43.
Senior (upper) managers must be informed of potential problems, and the PM must:
- A.
Hold daily team meetings.
- B.
Present a positive report on project progress.
- C.
Never allow upper management to be surprised.
- D.
Consult with upper management regarding day to day operations.
Correct Answer
C. Never allow upper management to be surprised.Explanation
The correct answer is "Never allow upper management to be surprised." This is because senior managers need to be informed of potential problems in order to make informed decisions and take appropriate actions. By keeping upper management informed, the project manager ensures transparency and accountability. This allows for effective communication and collaboration between the project team and senior management, leading to better project outcomes.Rate this question:
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- 44.
What should a PM do to ensure adequate resources are available for project success?
- A.
Be good friends with upper management.
- B.
Make deals with other PM's for exchanging resources.
- C.
Request an extension of the project due date.
- D.
Be ready to negotiate resources tradeoffs such as subcontracting, if necessary.
Correct Answer
D. Be ready to negotiate resources tradeoffs such as subcontracting, if necessary.Explanation
To ensure adequate resources for project success, a project manager should be ready to negotiate resource tradeoffs such as subcontracting if necessary. This means that the PM should be willing to make compromises and adjustments in terms of resource allocation to meet project requirements. By being open to subcontracting, the PM can tap into external resources and expertise to supplement the project team and ensure that all necessary resources are available. This approach demonstrates flexibility and adaptability, which are crucial for successful project management.Rate this question:
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- 45.
Projects are conducted in four important environments. They are_____
- A.
Economic, political, legal, and sociotechnical
- B.
Profit, not for profit, government, and industry
- C.
Internal, external, transitional, and multicultural
- D.
Routine, unique, fast-paced, and complex
Correct Answer
A. Economic, political, legal, and sociotechnicalExplanation
Projects are conducted in four important environments: economic, political, legal, and sociotechnical. These environments play a crucial role in shaping the project's success and outcomes. The economic environment includes factors such as market conditions, financial resources, and economic stability, which can impact the project's budget and feasibility. The political environment involves government policies, regulations, and stakeholders' interests, which can influence project decisions and implementation. The legal environment encompasses laws, contracts, and intellectual property rights, which must be considered to ensure compliance and avoid legal issues. Lastly, the sociotechnical environment considers social and technological factors, such as cultural norms, social trends, and available technology, which can affect project acceptance and adoption.Rate this question:
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- 46.
Which of the following choices represent the best mix of skills and attributes for project team members?
- A.
Ability to take orders, good work habits, individual contributor
- B.
High technical skills, willingness to take orders from PM, self-control
- C.
High technical skills, problem-solving ability, political sensitivity, goal orientation, high self-esteem
- D.
Problem-solving ability, technical skills, modest opinion of self
Correct Answer
C. High technical skills, problem-solving ability, political sensitivity, goal orientation, high self-esteemExplanation
The best mix of skills and attributes for project team members includes high technical skills, problem-solving ability, political sensitivity, goal orientation, and high self-esteem. High technical skills are necessary for effectively completing project tasks. Problem-solving ability is important for overcoming challenges and finding solutions. Political sensitivity allows team members to navigate organizational dynamics and build relationships. Goal orientation ensures that team members are focused on achieving project objectives. High self-esteem helps team members have confidence in their abilities and contribute effectively to the team.Rate this question:
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- 47.
Under normal business conditions, when the functional manager takes over control of important details of the project, this is…
- A.
Guaranteeing the plans.
- B.
Micromanagement, and usually not useful.
- C.
Beneficial for project success.
- D.
Ensuring good results.
Correct Answer
B. Micromanagement, and usually not useful.Explanation
When the functional manager takes over control of important details of the project, it is considered micromanagement. Micromanagement refers to excessive control and involvement in the smallest aspects of a project, which can be detrimental to the overall success. It often hinders creativity, autonomy, and productivity of the team members. Micromanagement is generally not useful as it can demotivate employees, hamper decision-making, and limit their ability to take ownership of their work. Therefore, it is not beneficial for project success.Rate this question:
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- 48.
How can effective, lasting business relationships be built across different cultures?
- A.
Threatening to cancel contracts if multinationals will not agree to terms.
- B.
Selecting business parters only if they have proof of existing strong national ties.
- C.
When disagreements occur, meeting together in a atmosphere of trust and negotiation to resolve problems.
- D.
Filing lawsuits when people do not perform as expected.
Correct Answer
C. When disagreements occur, meeting together in a atmosphere of trust and negotiation to resolve problems.Explanation
Building effective, lasting business relationships across different cultures requires a collaborative approach when conflicts arise. By meeting in an atmosphere of trust and negotiation, parties can openly discuss their differences and work towards finding mutually beneficial solutions. This approach fosters understanding, promotes compromise, and helps build stronger relationships based on respect and cooperation. Threatening to cancel contracts or filing lawsuits may strain relationships and hinder long-term success. Selecting partners based on national ties alone may not guarantee effective communication or understanding between cultures.Rate this question:
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- 49.
Identify the atribute that is NOT normally associated with the job of functional manager.
- A.
Responsible for deciding what resources will be devoted to accomplishing the task.
- B.
Responsible for deciding who will do the work
- C.
Administratively responsible for deciding how something will be done.
- D.
Being a generalist in the area being managed.
Correct Answer
D. Being a generalist in the area being managed. -
- 50.
The ideal project manager shold be _____
- A.
A direct, technical supervisor knowledgable in the technology of the process being used
- B.
Both generalist/facilitator and have a high level of technical competence in the science of the project
- C.
A technical specialist competent in principles of robust design
- D.
A facilitator and specialist with technical credibility
Correct Answer
B. Both generalist/facilitator and have a high level of technical competence in the science of the projectExplanation
The ideal project manager should possess a combination of generalist/facilitator skills and a high level of technical competence in the science of the project. This means that the project manager should have a broad understanding of various aspects of project management, such as planning, organizing, and coordinating, while also having a deep understanding of the technical aspects of the project. This combination allows the project manager to effectively lead the team, facilitate communication and collaboration, and make informed decisions based on their technical expertise.Rate this question:
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Jul 19, 2023Quiz Edited by
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Jan 21, 2016Quiz Created by
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