Subject: Project Management

Faculty: Vipin Misra

MCQs

Q1. A communication management plan identifies the relevant information

that should be communicated to:

• The project team.

• The project stakeholders.
• The project board.
• The project sponsor.

Q2. Which one of the following statements is true?

• Independent reviews and quality audits form part of quality assurance

to ensure the project manager delivers on time and to budget.
• Quality assurance provides confidence to stakeholders that
requirements for quality will be exceeded.
• Quality control verifies that the project deliverables conform to
specification, are fit for purpose and meet stakeholder
expectations.
• Quality planning enables the project manager to manage the trade-off
between customer expectations and budget.

Q3. Project risk management is best described as:

• Managing responses to threats.

• Identifying and acknowledging threats and opportunities.
• Planning responses to threats.
• Minimising threats and maximising opportunities.

Q4. Which one of the following best describes a project issue?

• A major problem that requires formal escalation.

• A problem that the project manager has to deal with on a day-to-day
basis.
• An uncertain event that may or may not occur.
• An opportunity that occurs through change control.
Q5. Scheduling can best be defined as the process used to determine:

• overall project duration.

• project cost estimating.
• the project management plan.
• sub-contractor’s responsibilities.

Q6. Which one of the following statements is true?

• An increase in project scope is likely to increase project cost.

• A decrease in the project time is likely to increase project quality.
• An increase in the project quality requirements is likely to decrease
project cost.
• A decrease in the project cost is likely to decrease project time.

Q7. Which one of the following statements best defines the purpose of a
Product Breakdown Structure (PBS)?

• To define the hierarchy of deliverables that are required to be

produced on the project.
• To define how the products are produced by identifying derivations and
dependencies.
• To establish the extent of work required prior to project commissioning
and the handover.
• To identify the health and safety strategies and procedures to be used
on the project.

Q8. Which one of the following is least likely to be a success criteria?

• A target for the project to receive zero change requests.

• The date by which the project is to be completed.
• Delivery of products that meet required specifications.
• The awarding of bonuses to senior management.

Q9. Which one of the following is a valid project Key Performance Indicator
(KPI)?

• Staff appraisals.
• Management buy in.
• Milestone achievement.
• Master schedule.

Q10. Which one of the following statements is true?

 • The business case is owned by the sponsor and is created during
the concept phase of the project life cycle.
• The business case is owned by the project manager and is created
during the concept phase of the project life cycle.
• The business case is owned by the sponsor and is created during
definition phase of the project life cycle.
• The business case is owned by the project manager and is created
during the definition phase of the project life cycle.

Q11. Who owns the Project Management Plan (PMP)?

• The project team.

• The chief executive.
• The project manager.
• The project support office.

Q12. Which one of the following best describes users?

• Providers of both strategic and tactical direction to the project.

• Those intended to receive benefits or operate outputs.
• Facilitators of an appropriate issue resolution procedure.
• Those providing full-time commitment to the project.

Q13. Which statement best describes a responsibility of the project manager:

• to be the sole source of expertise for estimating techniques on cost and

time.
• to deliver the project objectives to enable benefits to be realised.
• to take ultimate accountability for the delivery of the business benefits.
• to delegate all accountability for managing time, cost and quality to
team leaders.

Q14. A project is typically defined in terms of scope, time, cost and which
other parameter?

• Benefits.
• Quality.
• Tolerance.
• Controls.

Q15. Which one of the following statements is true?

• Business-as-usual activities cannot be improved.

• Business-as-usual activities are more difficult to manage than projects.
 • Projects are transient endeavours that bring about change to
business-as-usual.
• A project is always the starting point for operation refinement.

Q16. What is defined as “the ability to influence and align others towards a
common purpose”?

• Teamwork.
• Motivation.
• Management.
• Leadership.

Q17. Which one is a true statement relating to project communications?

1. A project sponsor is responsible for all communication methods and

media.
2. Different stakeholders typically have different communication
needs.
3. It is best to have a standard set of project reports used for every project.
4. Email is the only way to communicate with large numbers of people.

Q18. In project management, the term quality is best defined as:

• inspection, testing and measurement.

• reviews and audits.
• fitness for purpose of deliverables.
• professionally-bound project reports.

Q19. The main outcome of risk identification, in a risk management process, is

to:

• identify and determine the relative importance of the project risks.

• identify and describe all risks that might occur on the project.
• identify and determine the responses to the project risks.
• identify and describe risks that have occurred on previous projects.

Q20. Which one of the following is not considered in resource management?

• Identifying resources.
• Influencing resources.
• Assigning resources to activities.
• Matching resources to the schedule.

Q21. Which one of the following does project change control primarily seek to
ensure?
 • All variance to the project scope is evaluated.
• No reduction in the perceived quality of the project outcome.
• Management costs of the project do not increase.
• Any decrease in the scoped deliverable of the project is rejected.

Q22. Which one of the following is captured in the Work Breakdown Structure
(WBS)?

• The life cycle phases.

• The logical order of tasks.
• The scope of the project.
• Project costs.

Q23. Project reporting can best be defined as:

• informing stakeholders about the project.

• storing and archiving of project information.
• gathering stakeholder feedback.
• collecting project information.

Q24. Which one of the following statements best defines an estimate?

• An approximation of project time and cost targets, refined

throughout the project life cycle.
• A prediction of a future condition or event based on information or
knowledge available now.
• The value of useful work done at any given point in a project to give a
measure of progress.
• A situation that affects or influences the outcome of the project
expressed in time or cost terms.

Q25. The justification for the investment to be made in a project is

documented in the:

• Cost Breakdown Structure.

• procurement strategy.
• business case.
• Project Management Plan.

Q26. Which one of the following is a responsibility of the project steering

group/board?

• To identify potential problems for the project team to solve.

• To provide strategic direction and guidance to the sponsor.
• To manage the project team in all daily activities.
 • To receive and consider daily reports from team members.

Q27. One of the reasons a project life cycle is split into phases is to:

• facilitate formal go/no-go decision making during the project.

• balance the costs of work in each phase of project development.
• mirror the major deployments of resources throughout the project.
• chunk work into time periods of similar durations.

Q28. Which of the following best describes a project environment?

• The type of organisation concerned with implementation.

• The structured method used to control the project.
• The context within which a project is undertaken.
• An understanding of the risks involved in the project.

Q29. Which one of the following statements best describes a project?

• A project is a set of tools and techniques often used when delivering

organisational change.
• A project is the sum of activities needed to remove uncertainty from a
unique piece of work.
• A unique transient endeavour undertaken to achieve a desired
outcome.
• A project is a method of planning work.

Q30. The document that identifies what information needs to be shared, to

whom, why, when and how is called the:

• communication management plan.

• stakeholder mapping grid.
• document distribution schedule.
• responsibility assignment matrix.

Q31. An important aim of a post-project review is to:

• validate overall progress to date against the budget and schedule.

• capture learning and document it for future usage.
• ensure acceptance of all permanent documentation, signed by the
sponsor.
• establish that project benefits have been identified.

Q32. The process that evaluates overall project performance to provide

confidence is called:
 • quality assurance.
• quality planning.
• quality control.
• quality audit.

Q33. Which one of the following statements about the project risk register is
false?

• It facilitates the review and monitoring of risks.

• It facilitates the risk appetite.
• It facilitates the recording of risk responses.
• It facilitates the recording of risks.

Q34. Which one of the following statements best defines procurement?

• A technique to establish the best approach for obtaining the resources

for the project.
• A group of interrelated resources and activities that transform inputs
into outputs.
• The description of the purpose, form and components to support
delivery of a product.
• The process by which products and services required for the
project are acquired.

Q35. Once a change has been requested what is the next step in the change
control process?

• Evaluate the change.

• Advise the sponsor.
• Update the change log.
• Update the project plan.

Q36. A Responsibility Assignment Matrix (RAM) can be used to:

• define the terms of reference of the project manager.

• define the limits of the project sponsor’s responsibilities.
• allocate risk management response activities to project personnel.
• allocate work packages to those responsible for project work.

Q37. An Organisational Breakdown Structure (OBS) is used to identify:

• the reporting structure and current availability of all individuals in the

project.
• technical ability and line of communication for all individuals in the
project.
 • lines of communication and responsibility for all the individual
managers in the project.
• the reporting structure and lines of communication for all
individuals in the projects.

Q38. Which one of the following best describes project success criteria?

• Actively seeking some senior management support.

• Measures by which the success of the project is judged.
• Achievement of milestones.
• A motivated project team.

Q39. Comparative estimating uses:

• current data from similar projects.

• historic data from all projects.
• historic data from similar projects.
• current data from all projects.

Q40. Which one of the following best describes a project stakeholder?

• A party who is concerned about the project going ahead.

• A party with an interest or role in the project or is impacted by the
project.
• A party who has a vested interest in the outcome of the project.
• A party who has a financial stake in the organisation managing the
project.

Q41. The main purpose of the Project Management Plan is to:

• provide justification for undertaking the project in terms of evaluating

the benefit, cost and risk of alternative options.
• ensure the project sponsor has tight control of the project manager’s
activity.
• document the outcomes of the planning process and provide the
reference document for managing the project.
• document the outcome of the risk, change and configuration
management processes.

Q42. Who has ultimate responsibility for project risk?

• Steering group.
• Risk owner.
• Project sponsor.
• Project manager.
Q43. When a project has completed the handover and closure phase:

• the project deliverables are ready for commissioning.

• the project deliverables are ready for handing over to the users.
• the project documentation must be disposed of.
• the capability is now in place for the benefits to be realised.

Q44. Which one of the following illustrates why effective project management
is beneficial to an organisation?

• It utilises resources as and when required under direction of a

project manager.
• It advocates employing a consultancy firm which specialises in
managing change.
• It recommends using only highly skilled people in the project team.
• It ensures that the chief executive is accountable for the achievement of
the defined benefits.

Q45. A key aspect of managing a project involves:

• defining which operational systems to put in place.

• identifying routine tasks.
• ensuring ongoing operations are maintained.
• planning to achieve defined objectives.

Q46. Which one of the following statements best defines teamwork?

• People working collaboratively towards a common goal.

• Developing skills that will enhance project performance.
• Gathering the right people together to work on a project.
• Establishing vision and direction towards a common purpose.

Q47. A review undertaken to decide whether a project should proceed into its
next phase is known as a:

• gate review.
• feasibility study.
• milestone review.
• evaluation review.

Q48. Which one of the following statements best describes the use of an issue
log?

• A summary of all possible alternative resolutions of an issue.

• A summary of all the project issues, their analysis and status.
 • A tool to ensure that a process is in place for capturing all issues.
• A tool to ensure that the issue management process is adhered to.

Q49. The main aim of a project risk management process should be to:

• identify project risks and then manage them appropriately.

• identify all project risks and transfer them immediately.
• identify all the things that are threats or opportunities on a project.
• satisfy the organisation’s project management process.

Q50. What is a visual representation of a project’s planned activities against a

calendar called?

• A Gantt chart.
• A critical path network.
• A product flow diagram.
• A Pareto chart.

Q51. Configuration management is best described as:

• control in the implementation of changes to project schedules.

• an organisation to review proposed changes to the project deliverables.
• quality control of project deliverables and documentation.
• creation, maintenance and controlled change of the project
deliverables.

Q52. A Cost Breakdown Structure (CBS) shows costs assigned to:

• individual work packages using the Work Breakdown Structure

(WBS).
• individual resources using the Work Breakdown Structure (WBS).
• individual resources using the Responsibility Assignment Matrix (RAM).
• individual deliverables using the Responsibility Assignment Matrix
(RAM)

Q53. The accuracy of an estimate should:

• Decrease as a project progresses through its life cycle.

• Increase as a project progresses through its life cycle.
• Stay constant throughout the project life cycle.
• Vary independently of where the project is in its life cycle.

Q54. Which one of the following best defines a benefit?

• A positive result of stakeholder management.

 • The successful management of a project.
• An improvement resulting from project deliverables.
• The successful delivery of project reports and updates.

Q55. Which one of the following is true for the Project Management Plan
(PMP)?

• The Project Management Plan is developed by the project manager and

team and owned by the sponsor.
• A draft of the Project Management Plan is developed by the sponsor at
the same time as the business case.
• The Project Management Plan is developed by the sponsor and owned
by the project manager.
• The Project Management Plan is developed by the project manager
and team and owned by the project manager.

Q56. Who are project team members primarily accountable to?

• External stakeholders.
• The end users.
• The finance director.
• The project manager.

Q57. The phases of a project life cycle are:

• Starting, planning, control and closing.

• Concept, definition, development, handover and closure.
• Initiation, definition, planning, monitoring and operations.
• Concept, definition, implementation and operations.

Q58. A portfolio can best be defined as:

• A group of projects and programmes carried out within an

organisation.
• A group of programmes carried out under the sponsorship of an
organisation.
• A group of projects carried out under the sponsorship of an
organisation.
• A range of products and services offered by an organisation.

Q59. Which one of the following best describes project management?

• Using APM’s Body of Knowledge 6th edition as a guide to all projects.

• Employing a project manager who has undertaken similar projects.
• Utilising team members who can work on a project full time.
 • Application of processes and methods throughout the project life
cycle.

Q60. Which structure shows the reporting relationships and communications

channels for a project?

• Work Breakdown Structure.

• Organisational Breakdown Structure.
• Product Breakdown Structure.
• Responsibility assignment structure.

Q.61. Which of these is not one of the constraints of a project?

1. Scope
2. Resources
3. Team
4. Budget

Q62. Which of the following is not correct about initial phase of a project?

1. The cost associated at the beginning of the project is highest.

2. Stakeholders have maximum influence during this phase
3. The highest uncertainty is at this stage of the project.
4. All the above statements are correct.

Q63. The project you are managing has nine stakeholders. How many channel
of communications are there between these stakeholders?

1. 9
2. 8
3. 45
4. 36

Ans: (9*8) / 2 = 36

Q64. Which of the following is not an example of formal communication?

1. Contract
2. email
3. Project status report
4. Status meeting
Q65. Project with a total funding of Rs. 100,000 finished with a BAC value of
Rs. 95,000. What term can BEST describe the difference of $5,000?

1. Cost Variance
2. Management Overhead
3. Management Contingency Reserve
4. Schedule Variance

Q66. If the Earned Value is equal to Actual Cost, it means:

1. Project is on budget and on schedule

2. Schedule Variance Index is 1
3. There is no schedule variance
4. There is no cost variance

Comment: EV – AC = Cost Variance. Therefore if EV = AC, the Cost Variance is

zero (i.e. Project is on budget (but not necessarily on schedule, as there is not
enough information on schedule variance)

Q67. Which of the following is the most important element of Project

Management Plan that is useful in HR Planning process:

1. Risk Management activities

2. Quality Assurance activities
3. Activity Resource requirements
4. Budget Control activities

Comment: Activity Resource requirements is a primary input to HR Planning.

It is used to determine the human resource needs of the project.

Q68. Which of the following types of Organizational Charts can be BEST used
to track project costs:

1. Hierarchical-type Organizational Chart

2. Organizational Breakdown Structure
3. Resource Breakdown Structure
4. Responsibility Assignment Matrix

Comment: RBS can be aligned with Organization’s accounting system

Q69. Process Analysis is a function of:

1. Performance Analysis
2. Quality Metrics
 3. Process Improvement Plan
4. Quality Improvement Plan

Q70. Root Cause Analysis relates to:

1. Process Analysis
2. Quality Audits
3. Quality Control Measurements
4. Performance Measurements

Q71. A planning phase for an engineering component generated 80

engineering drawings. The QA team randomly selected 8 drawings for
inspection. This exercise can BEST be described as example of:

1. Inspection
2. Statistical Sampling
3. Flowcharting
4. Control Charting

Q72. Amit has joined as the Project Manager of a project. One of the project
documents available to Andrew lists down all the risks in a hierarchical
fashion. What is this document called?

1. Risk Management Plan.

2. List of risks.
3. Monte Carlo diagram.
4. Risk Breakdown Structure.

Comment: Hierarchical description of risks is called Risk Breakdown

structure.

Q73. During which stage of Risk planning are risks prioritized based on
probability and impact?

1. Identify Risks
2. Plan Risk responses
3. Perform Qualitative risk analysis
4. Perform Quantitative risk analysis

Comment: Risk probability and impact are defined during Qualitative risk
analysis

Q74. Activity Definition is typically performed by which of the following:

1. Project Manager who created the WBS

 2. Project Team Members responsible for the work package
3. Project Officer
4. Project Stakeholder

Q75. Which of the following does NOT generate changes to the Project
documents:

1. Define Activities
2. Sequence Activities
3. Estimate Activity Resources
4. Estimate Activity Durations

Q76. Which of the following may generate a milestone list:

1. Define Activities
2. Sequence Activities
3. Estimate Activity Resources
4. Estimate Activity Durations

Q77. Schedule activity may begin 10 days before the predecessor activity
finishes. This is an example of:

1. Finish-to-Start
2. Start-to-Finish
3. Start-to-Start
4. Finish-to-Finish

Q78. Ram Consultancy is planning to buy ten desktops for Rs. 45000 each
from a leading computer store. Which type of contract will get signed in this
case?

1. Purchase Order
2. Cost plus Fee
3. Fixed cost
4. Time and Material

Q79. Radha is a Project Manager. She is coordinating a bidder conference to

allow vendors to get clarification on the work that needs to be performed.
Which phase of Project Management is in progress?

1. Conduct Procurements
2. Plan Procurements
3. Control Procurements
4. Close Procurements
Comment: During the Conduct Procurements process, bidders can clarify
their doubts using bidder conference.

Q80. The process of Control Procurements falls under which process group

1. Planning
2. Closing
3. Monitoring and Control
4. Executing

Comment: Control procurement is part of Monitoring and Control process

group

Q81. In project planning, it explains...................... that are needed to for the

growth of product.

a. a series of actions

b. steps

c. both a, b

d. none of the above

Q82. A project has never happened before, and it will never happen again
under the ...............conditions.

a. Same condition

b. Different condition

c. Various condition

d. None of the above

Following MCQs are of advance level. Read them carefully. Answers have been
given separately after each question.

1. According to the Project Management Institute (PMI), project management is

defined as “the application of knowledge, _____, _____, and techniques to project
activities to meet the project requirements”.
Select one:
a. skills, analysis
b. tools, analysis
c. analysis, theories
d. skills, tools
e. skills, theories

Answer : (D) skills, tools

2. As a project manager, Tyler is so happy that all expected project deliverable

have been accomplished by his project team. What is the next step for his project
to proceed in order to verify the project scope by his project client?

Select one:
a. Ask his client to pay for the completed project deliverables.
b. Award all of his project team members for such a great accomplishment.
c. Offer a party for his project team and client to celebrate the success of the
project.
d. Ask his client to conduct an inspection on all of the completed project
deliverables.
e. Invite a few experts to judge the quality of all the completed project
deliverables.

Answer : (d) Ask his client to conduct an inspection on all of the

completed project deliverables

3. What is the first step in project planning?

Select one:
a. Establish the objectives and scope.
b. Determine the budget.
c. Select the team organizational model.
d. Determine project constraints.
e. Inspect the deliverables.

Answer : (a) Establish the objectives and scope

4. While assessing your project processes, you have identified some uncontrolled
process variations. Which of the following would be the appropriate chart you
may use for this purpose?

Select one:
a. Pareto diagram
b. PERT chart
c. Control chart
d. HR personnel chart
e. Critical path

Ans:- C. Control chart

5. Once the project is approved and moves into the planning stage, what happens
in the next phase of the project life cycle?

Select one:
a. Agreements for risk sharing need to be concluded.
b. The total risk on the project typically reduces as activities are performed
without loss.
c. Risks must be weighed against the potential benefit of the project’s success
in order to decide if the project should be chosen.
d. Risks are identified with each major group of activities.
e. A risk response plan can be used to identify increasing levels of detailed risk
analysis

Answer : – D. Risks are identified with each major group of activities.

6. Fill in the blank. Risk must be considered in the _____ phase and weighed against
the potential benefit of the project’s success in order to decide if the project
should be chosen.

Select one:
a. completion
b. closeout
c. execution
d. planning
e. initiation

Answer is – (E) initiation

7. Due to the rapid expansion of your company, your boss decides to establish a
project management office (PMO) within the company and asks you to take the
lead. According to the PMBOK guide, to be the ideal PMO you can do which of the
following?

Select one:
a. Speed up a specific ongoing project.
b. Find opportunities for collaborative project management.
c. Reassign the resources that have been assigned to ongoing projects.
d. Reduce the assigned resources to existing projects.
e. Reduce the number of project managers in the company.
Ans – B. Find opportunities for collaborative project management

8. Why does the creation of processes for developing teams, establishing

priorities, and distributing work and tasks require different sets of skills?

Select one:
a. Because resources on the project management team may view it as
permanent
b. Because resources on the project management team may view it as
temporary
c. Because resources on the project team are not aware of the technical
aspects of the initiative
d. Because members of the project management team are not aware of the
knowledge and skills of the other people working on the project
e. Because project management teams do not look after the operational
aspects of the project and are concerned only with the strategy

Ans – b. Because resources on the project management team may view it

as temporary

Question 9. According to Bruce Tuckman’s five stages of team development,

project team members compete for control at which stage?

Select one:
a. Forming
b. Storming
c. Norming
d. Performing
e. Adjourning

Answer- (b) Storming

10. The project management office (PMO) handles all of the following functions
EXCEPT:

Select one:
a. maintaining the organization’s project management policies and
procedures.
b. supervising the project managers.
c. assigning project managers from other departments but not procuring
contract project managers.
d. monitoring project performance. e. providing functional support to projects
like project scheduling and project cost analysis
Ans – c. assigning project managers from other departments but not
procuring contract project managers.

11. Under which of the following conditions would teams be more effective than
individuals?

Select one:
a. When speed is important
b. When the activities involved in solving the problem are very detailed
c. When the actual document needs to be written
d. When innovation is required
e. When a commitment to the solution is needed by small portions of the
project tea

Ans – d. When innovation is required

12. Which of the following is the process of understanding the knowledge, skills,
and abilities needed to manage a task and then matching the team members with
the right skills to do that work?

Select one:
a. Benchmarking
b. Expediting
c. Procurement
d. Delegation
e. Solicitation

Ans – d. Delegation

13. Which of the following defines what tasks the project resources are expected
to accomplish and, just as importantly, what is not part of the project team’s
responsibilities?

Select one:
a. Punch list
b. Check sheet
c. Project logic diagram
d. Checklist
e. Scope document

Ans – e. Scope document

14. After Marta obtained her PMP certificate, her boss assigned her to be in
charge of a long-term project, which a recently resigned project manager, Todd,
had been working on for three years. When Marta looks at historical information
that Todd achieved for this project, which of the following is deemed most critical
for Marta to manage her project team?

Select one:
a. Project contract
b. Detailed activity lists and WBS dictionary
c. Legal documents
d. Project lessons
e. Learn who are the project investors

Ans – b. Detailed activity lists and WBS dictionary

15. Fill in the blank. There is _______ correlation between project complexity and
project risk. Select one:

a. an unknown
b. a positive
c. no
d. a negative
e. a general

Ans – b. a positive

16. As a new project manager, Karen was worried about a statement from her
client: “your project deliverable is in low quality with low grade”. According to
PMBOK, how can you help Karen distinguish the differences between “quality”
and “grade”?

Select one:
a. Quality and grade represent the same thing.
b. Low quality can never be a problem, but low grade is.
c. Low quality represents a true problem, but low grade might not be the case.
d. Low quality with high grade is always desirable to your client. e. High
quality always represents high grade.

Answer – c. Low quality represents a true problem, but low grade might
not be the case

17. Complete the following statement. As a project manager, Darrell is excited

that he is assigned to be in charge of the most important project this year. After
being chartered for the project, he analyzes the information in the project charter
and the stakeholder register to:

Select one:
a. decide how to draft a scope statement.
b. start to define and develop the stakeholder needs and requirements. c.
prepare for the template to monitor project progress.
d. estimate the entire project budget.
e. learn how to get project budget approved by stakeholders.

Answer – b. start to define and develop the stakeholder needs and

requirements.

18. After Ling finished drafting a new project charter, she sent a copy of the
charter to all key project parties including the project sponsor, senior
management and key stakeholders, and scheduled a kick-off meeting with them.
What will be the most important goal for Ling to complete the project charter?

Select one:
a. Make a professional looking project charter to impress the key project
parties.
b. Get confirmation from the key parties that they have read the charter.
c. Invite the key parties for a nice lunch to establish a friendly relationship. d.
Gather promises from the key project players.
e. Obtain officially signed project charters from the key parties.

Answer – e. Obtain officially signed project charters from the key parties.

19. Fill in the blank. During the _________ of a project, the project manager focuses
on developing the project infrastructure needed to execute the project and
developing clarity around the project charter and scope.

Select one:
a. completion
b. start-up
c. execution
d. evaluation
e. selection

Answer – b. start-up

20. A project budget estimate that is developed with the least amount of
knowledge is known as which of the following?

Select one:
a. Rough order of magnitude (ROM) estimate
b. Scope of work estimate
c. Conceptual estimate
d. Line estimate
e. Milestone schedule estimate
Answer – c. Conceptual estimate

21. What is the first step in developing a risk management plan?

Select one:
a. Analyze the risks.
b. Estimate the likelihood of the risks occurring.
c. Identify potential project risks.
d. Develop a risk mitigation plan.
e. Estimate the potential impact of risk on the project goals.

Answer – c. Identify potential project risks

22. According to the PMBOK guide, which of the following statements is right in
terms of using reserve analysis to determine a project budget?

Select one:
A. Reserve analysis always plans contingency reserves for unexpected project
scope and project costs, which are part of your project budget.
B. Reserves should not be included in the project budget.
C. If you only have limited resources, you may completely ignore reserve
analysis when you try to determine your project budget.
D. Planning contingency reserves for a project is not practical.
E. Contingency reserves have never been a concern when planning a project
budget.

Answer – A. Reserve analysis always plans contingency reserves for

unexpected project scope and project costs, which are part of your
project budget.

23. Complete the following statement. As the project progresses into the
execution phase:

Select one:
a. risks need to be checked off on activities that have been performed.
b. the total risk on the project typically increases.
c. risks are identified with each major group of activities.
d. a risk response plan can be used to identify increasing levels of detailed risk
analysis.
e. the risk breakdown structure needs to be examined to be sure all the risk
events have been avoided.

Answer – a. risks need to be checked off on activities that have been

performed.
24. Which of the following statements about achieving a common understanding
of the project purpose is true?

Select one:
a. A common understanding means building a consensus and disagreement
regarding a project’s purpose is often fatal to project execution.
b. Developing a common understanding involves defining project success,
determining potential barriers to success, establishing milestones, and
identifying decision-makers.
c. The methods and processes employed to develop a common understanding
depend on the duration of the project.
d. Irrespective of the complexity of the project, developing a common
understanding usually involves informal discussions that last a few hours.
e. When developing a common understanding of the purpose of a project,
participants are often instructed to refrain from expressing skepticism.

Answer – b. Developing a common understanding involves defining

project success, determining potential barriers to success, establishing
milestones, and identifying decision-makers.

25. Which of the following is typically a written document that defines

what work will be accomplished by the end of the project?

Select one:
a. Scope of work (SOW)
b. Project logic diagram
c. Milestone schedule
d. Ballpark estimate
e. Work breakdown structure

Answer – a. Scope of work (SOW)

26. What is considered to be the most useful skill for a project manager who
works in a matrix environment in order to achieve project goals?

Select one:
a. Leadership skill
b. Influencing
c. Conflict management skill
d. Time management
e. Planning skill

Answer – b. Influencing
27. Marco is an investor, and Jon is a project team member. Both have intensive
technical background for the project that you are managing. However, recently
they have disagreed on the next step to take for the project. They both decide to
defer to whoever has the authority to make this decision. Who has the authority
to decide which direction should be taken for the project?

Select one:
a. Project manager
b. Stakeholders
c. The project team
d. Investors
e. The board of trustees of this company

Answer – c. The project team

28. As a project manager, while Kathy was trying to categorize all potential risks
for her new construction project M based on levels of probability and impact on
the project, she identified a potential risk, regarding a schedule conflict with
another project to obtain critical equipment for a short time period. Overall,
because this risk is probable and might impact her project M, Kathy wants to
record this risk; however, she is confused about where she should document this
type of risk. According to the PMBOK guide, where should Kathy document this
risk?

Select one:
a. Watch list
b. Risk management plan
c. Project management plan
d. WBS
e. Scope management plan

Answer – d. WBS

29. Which of the following is a quality management system that gives titles to
specialists and requires a cost-benefit analysis?

Select one:
a. Lean accounting
b. Business process re-engineering
c. Kaizen
d. Six Sigma
e. Total Quality Management

Answer – d. Six Sigma

30. Which one of the following is the last step of project closings?
Select one:
a. The client has accepted the product.
b. Archives are complete.
c. The client appreciates your product.
d. Lessons learned are documented.
e. Temporary staff is released.

Answer – b. Archives are complete.

31. As a project manager of Project Cool at the company, Samira is responsible for
monitoring and controlling two project management processes: process A and
process B. She recently noticed a high priority risk X has been imposed on her
project process A in Project Cool. While she tried to control the risk X, she also
noticed that a new potential risk Y will be added to process B. Which of the
following best explains this situation?

Select one:
a. If risk Y happens, then it is all Samira’s fault, because she did not do a good
job of carefully monitoring the risks for Project Cool.
b. This is common in practice. Risk Y is a secondary risk caused by Risk X.
c. The potential risk might happen, but Samira can ignore risk Y, as risk X
takes higher priority.
d. Samira is not experienced enough for handling risk management, so her
boss will probably fire her.
e. Risk Y is called a low priority risk, which is not considered to be a real
concern, so Samira should not worry about risk Y.

Answer – b. This is common in practice. Risk Y is a secondary risk caused

by Risk X.

32. Roberto is in charge of a new project to help Company A upgrade its old HR
system to a cutting-edge, cross-platform system with the most recent mobile
technologies. After his project team assessed the available system
documentations, the team found the existing documentations too large and
complicated to implement the system updates. Roberto advised his team to
decompose the major project deliverables into more executable components. In
this project process, Robert advised his team to do which of the following?

Select one:
a. Document requirements
b. Create WBS
c. Define project scope
d. Verify project scope
e. Plan project milestones

Answer – b. Create WBS

33. Complete the following statement. In a weak matrix environment, the project
manager, Eric, has to constantly make an effort to influence his project team and
stakeholders to ensure project success. This is because:

Select one:
a. Eric has a lot of authority.
b. Eric has no or little authority.
c. Eric is controlled by his functional managers.
d. there are no functional managers.
e. Eric has flexibility on authority.

Answer – b. Eric has no or little authority.

34. Jack is in charge of a project team. Due to an unexpected project change, some
issues with the project have come up. Two key team members, Samantha and
Felix, are arguing their solutions to the project problems. They cannot convince
each other, and their conflict is creating a negative impact on the project’s
progress. As a PMP, which of the following would be the best advice for Jack to
manage this conflict?

Select one:
a. Confront the problem early, and invite both Samantha and Felix to private
meetings.
b. Force Felix to give up and to support Samantha.
c. Suggest that Samantha concede to Felix.
d. Let Felix and Samantha exercise their concerns through conflict resolution.
e. Delay this issue for now until it becomes a significant conflict.

Answer – a. Confront the problem early, and invite both Samantha and
Felix to private meetings.

35. Ahmed is actively initiating a project, so he plans to invite all relevant internal
and external stakeholders including sponsors, customers, project teams, etc. for a
kick-off meeting. To ensure all of them are covered in the stakeholder register,
which document is the most helpful for Ahmed to look at?

Select one:
a. Project team activities
b. Scope statement
c. Project charter
d. Work packages
e. Project funding agents

Answer – c. Project charter

36. Which of the following is a personal characteristic that reflects the
truthfulness of an individual that can be checked against observable facts?

Select one:
a. Objective credibility
b. Attribution of benevolence
c. Non-manipulative trust
d. High cost of lying
e. Acknowledgment of munificence

Answer – a. Objective credibility

37. When a project manager starts to plan a new project budget, the cost of which
project management process group is expected to be lowest?

Select one:
a. Initiating
b. Executing
c. Monitoring and controlling
d. Closing
e. Planning

Answer – d. Closing

38. CV = $70,000; AC = 90,000; Budget = $200,000. What percent of the project is

complete?

Select one: a. 80% b. 53% c. 45% d. 35% e. 75%

Answer – a. 80%

39. As a project manager, John was finally relieved because a major project led by
him was just announced a success. According to the PMBOK, which of the
following has likely happened in order to consider John’s project a success?

Select one:
a. John’s project has met all of the stakeholders’ expectations.
b. The phase completion of John’s project has been approved.
c. John’s client has paid off the project.
d. John’s boss is happy.
e. John and his team are promoted and get salary increases.

Answer – c. John’s client has paid off the project.

40. As a project manager, Neel has a team member, Kate, who has not been
performing well. Due to many repeated mistakes, she has significantly delayed
the whole project progress. Neel tried to offer relevant trainings for Kate to
improve her performance, and he was not able to see any progress in two months.
However, Kate is a single mom with three kids, and she needs this job to support
her family. Based on what you know about conflict management, in this situation,
how should Neel proceed?

Select one:
a. Neel should fire Kate and look for a more qualified team member.
b. Neel should help Kate find another job in the firm.
c. Neel should assign Kate more challenging tasks.
d. Neel should let Kate stay on the job and pick up her slack.
e. Neel should reduce Kate’s salary to reflect her performance.

Answer – a. Neel should fire Kate and look for a more qualified team
member

41. According to the Project Management Institute (PMI), the scope statement should
address all of the following issues EXCEPT:

Select one:
a. project constraints.
b. project assumptions.s
c. project exclusions.
d. code of conduct for the team members working on the project.
e. project deliverables.

Ans – d. code of conduct for the team members working on the project

42. Fill in the blank. The _____ is the difference between the additional money spent on
prevention and the corresponding reduction in the cost of failure.

Select one:
a. cost-benefit analysis
b. implicit cost
c. cost of quality
d. variable cost
e. cost-utility analysis

Ans- c. cost of quality

43. Which of the following project baselines provides the basis for measurement of the
expected cash flow against requirements over time and is often displayed as an S
curve?

Select one:
a. Schedule baseline
b. Cost performance baseline
c. Scope baseline
d. Plan baseline
e. Initiation baseline

Ans – b. Cost performance baseline

44. The conceptual estimate is developed with the least amount of knowledge. When
more information is known, the project team can develop a:

Select one:
a. work breakdown structure
b. critical estimate
c. rough order of magnitude (ROM) estimate
d. scope of work
e. ballpark estimate

Ans – c. rough order of magnitude (ROM) estimate

45. Petri is working for Nokia in Finland. He has completed 10 months of his 12-month
project, budgeted at $800,000. His earned value analysis shows that variance at
completion is $75,000. What is the estimate at completion value for this project?

Select one:
a. 725,000
b. -725,000
c. -$875,000
d. $875,000
e. $800,000

Ans – d. $875,000

46. Which of the following statements about flowcharts is true?

Select one:
a. Most flowcharts use one width of column to represent a category, while the vertical axis
represents the frequency of occurrence.
b. If a particular method is a standard of quality, you can compare your organization’s quality
plan to it by flowcharting.
c. A flowchart shows the ratio of cost of increasing quality to the resulting benefit.
d. If some of the functions of a project are repetitive, flowcharting can be used to identify
trends.
e. Flowcharting is useful for communicating responsibility for work processes.

Ans – e. Flowcharting is useful for communicating responsibility for work processes.

47. During the project meeting, the project manager had to leave earlier due to a family
emergency. Afterwards, a few team members started to argue, so the project meeting
took very long without producing outcomes. What is the possible reason that resulted in
the inefficient project meeting in this scenario?

Select one:
a. No project team ground rules were set up.
b. The current communications plan was very poorly designed.
c. The absence of project manager resulted in inefficiency.
d. There was no incentive mechanism set up to encourage team members to take over more
responsibilities.
e. The project team was not very cooperative.

Ans – a. No project team ground rules were set up.

48. Fill in the blank. Work breakdown structure (WBS) is a ______________ of the
work with increasing detail in each layer.

Select one:
a. layered description
b. step change
c. ballpark estimate
d. project execution plan
e. project logic diagram

Ans – a. layered description

49. According to the PMBOK guide which of the following statements is right in terms
of using reserve analysis to determine a project budget ?

Select one:
a. Reserve analysis always plans contingency reserves for unexpected project scope and
project costs, which are part of your project budget.
b. Reserves should not be included in the project budget.
c. If you only have limited resources, you may completely ignore reserve analysis when you
try to determine your project budget.
d. Planning contingency reserves for a project is not practical.
e. Contingency reserves have never been a concern when planning a project budget.

Ans – a. Reserve analysis always plans contingency reserves for unexpected project
scope and project costs, which are part of your project budget.

50. Fill in the blanks. It is during the ______________ phase that the decision should be
made regarding whether the project should continue. During this phase, ____________
must be considered and weighed against the potential benefit of the project’s success.

Select one:
a. completion, cost
b. closeout, resources
c. execution, performance
d. planning, timing
e. initiation, risk

Ans – e. initiation, risk

51. What is the most critical aspect in developing a project plan that meets project
specifications within the timeframe and at the lowest costs?
Select one:
a. Assessing risk management
b. Providing documents that specifically comply with the quality standards in use
c. Emphasizing error prevention and customer satisfaction
d. Requiring commitment to quality by all the employees and business partners
e. Developing a project execution plan that matches the complexity level of the project

Ans – e. Developing a project execution plan that matches the complexity level of the
project

52. Fill in the blank. Risk represents the likelihood that an event will happen during the
life of the project that will negatively affect the ________________ of project goals.

Select one:
a. scope creep
b. achievement
c. float
d. rough order of magnitude
e. slack

Ans – b. achievement

53. What should be done by the project manager to ensure that all the work in the
project is included?

Select one:
a. Create a contingency plan.
b. Create a risk management plan.
c. Create a WBS.
d. Create a statement of work.
e. Create a scope statement.

Ans – c. Create a WBS

54. Fill in the blank. During the _________ of a project, the project manager focuses on
developing the project infrastructure needed to execute the project and developing
clarity around the project charter and scope.

Select one:
a. completion
b. start-up
c. execution
d. evaluation
e. selection

Ans – b. start-up

55. After the celebration of the successful milestone completion, a

project manager will often do which of the following?
Select one:
a. Continue to increase the intensity of the project to achieve the next
milestone.
b. Continue to follow the exact same project plan that helped the team achieve
the milestone.
c. Allow the team to reflect on finding new ways of approaching the project
work.
d. Select an upcoming key event and designate it as the next milestone.
e. Stretch the goals of the project team, making them more tough and rigorous.

Ans – c. Allow the team to reflect on finding new ways of approaching the
project work.

56. Once the project is approved and moves into the planning stage, what
happens in the next phase of the project life cycle?

Select one:
a. Agreements for risk sharing need to be concluded.
b. The total risk on the project typically reduces as activities are performed
without loss.
c. Risks must be weighed against the potential benefit of the project’s success
in order to decide if the project should be chosen.
d. Risks are identified with each major group of activities.
e. A risk response plan can be used to identify increasing levels of detailed risk
analysis

Ans – d. Risks are identified with each major group of activities

57. What is the first step in project planning?

Select one:
a. Establish the objectives and scope.
b. Determine the budget.
c. Select the team organizational model.
d. Determine project constraints.
e. Inspect the deliverables.

Ans – a. Establish the objectives and scope.

58. Fill in the blank. Risk must be considered in the _____ phase and
weighed against the potential benefit of the project’s success in order to
decide if the project should be chosen.
Select one:
a. completion
b. closeout
c. execution
d. planning
e. initiation

Ans – e. initiation

59. According to PMBOK, project management process groups are

iterative, which was originally defined by Walter Shewhart and later
modified by Edward Deming. Generally, one outcome from a previous
process can serve as input for the next process. Which of the following
best identifies with the description of this concept?

Select one:
a. Project life cycle
b. Plan-Do-Check-Act cycle
c. Project phases
d. PM processes
e. HR process cycle

Ans – b. Plan-Do-Check-Act cycle

60. Determining the policies that are needed for the smooth execution of
a project relates to which of the following agenda items of alignment
sessions?

Select one:
a. Developing a common understanding of the project purpose
b. Establishing trust among team members
c. Engaging stakeholders in dialogue
d. Developing role clarification on projects
e. Agreeing on the means and methods for accomplishing the purpose

Ans – d. Developing role clarification on projects

61. Which of the following is true about management meetings?

Select one:
a. They are short meetings to develop a common understanding of what the
short-term priorities are for the project.
b. They focus on short-term activities, usually less than a week in duration.
c. They are purely fact-based meetings with a left-brain type focus.
d. They have very little dialogue except to ask clarification questions.
e. They are oriented toward developing plans, tracking progress of existing
plans, and making adjustments to plans in response to new information.

Ans – e. They are oriented toward developing plans, tracking progress of

existing plans, and making adjustments to plans in response to new
information.

62. Do it because I said to” is the mantra for project managers who use
_____ as the default approach to resolve conflict.

Select one:
a. collaborating
b. compromising
c. accommodating
d. forcing
e. avoiding

Ans – d. forcing

63. A(n) _ is a review of the quality plan, procedures, data collection, and
analysis by an outside group. Select one:

a. scope document
b. project appraisal
c. cost performance index
d. analogous estimate
e. quality audit

Ans – e. quality audit

64. Which of the following is an advantage of including the project

manager in the project evaluation process?

Select one:
a. It enables the project manager to have an understanding of the selection
criteria that can be used when making decisions about the project during later
phases.
b. It may indicate a need for project manager skills and experiences that are
different from the project manager who is involved in the evaluation.
c. It allows the parent organization to select a project manager whose abilities
match the complexity profile of the project.
d. It improves the project manager’s level of understanding about the project
and ensures that the chosen project manager is the most suitable individual
for executing the project.
e. It helps achieve greater buy-in from the top management of the parent
organization.

Ans – a. It enables the project manager to have an understanding of the

selection criteria that can be used when making decisions about the
project during later phases.

65. Which of the following statements is true regarding contracts?

Select one:
a. They are the filters through which project members screen information that
is shared.
b. They do not lend themselves to create an environment of trust.
c. The success of larger, more complex projects is more dependent on
contracts than on relationships of trust.
d. Without contracts, projects that are highly dependent on an information-
rich environment will suffer.
e. Contracts promote the growth of a trusting project culture.

Ans – b. They do not lend themselves to create an environment of trust.

66. Role clarification facilitates the development of all of the following,

EXCEPT:

Select one:
a. communication planning.
b. key milestones.
c. work flow organization.
d. approval processes.
e. role boundary spanning processes.

Ans – b. key milestones.

67. During a new project planning process to sequence activities, the

project manager, Nate, decides to use the precedence diagraming
method to show the identified activity dependencies. Which of the
following logical relationships is Nate’s least favourite choice?

Select one:
a. Finish-to-start
b. Start-to-finish
c. Finish-to-finish
d. Start-to-start
e. All of these answers

Ans – b. Start-to-finish

68. In today’s global society, many projects become global. To effectively

work together, global virtual teams have been used in practice. As a
project manager for a global project, Jim was told by a local team
member, Shan, that women are not allowed to hold positions of
authority because of the culture of his home country, since Jim hired a
female local assistant project manager. How would you respond to this
situation as a PMP?

Select one:
a. Inform your local team member that a non-discrimination policy has to be
adopted for this global project.
b. Replace a local female assistant PM with a male candidate.
c. Do nothing.
d. Ask all project team members to attend a training session on treating
different gender members for this global project equally.
e. Fire the local team member because of his discrimination behavior.

Ans – a. Inform your local team member that a non-discrimination policy

has to be adopted for this global project.

69. Which of the following is true about a project manager?

Select one:
a. Project managers analyze work processes and explore opportunities to
make improvements.
b. Project managers are focused on the long-term health of the organization.
c. Project managers are process focused.
d. Project managers are goal oriented.
e. Project managers standardize the work processes.

Ans – d. Project managers are goal oriented.

70. Shauna has recently been appointed as a project manager for Project
SkyNorth, which is regarded as an important project in her organization.
During the project planning meeting, Shauna is capable of allocating key
resources and personnel that she needs for this project. Which
organizational structure is best for Shauna’s company?

Select one:
a. Balanced matrix organization
b. Matrix organization
c. Functional organization
d. Projectized organization
e. Hierarchical organization

Ans – d. Projectized organization

71. Complete the following statement. The method of incorporating

change into project planning and execution processes is called the:

Select one:
a. project logic diagram.
b. change management process.
c. milestone schedule
d. critical path
e. rough order of magnitude

Ans – b. change management process

72. BCR>1 indicates which of the following?

Select one:
a. Benefits are greater than the costs.
b. Costs are greater than the benefits.
c. Costs and benefits are well balanced.
d. Benefits are less than the costs
e. Costs are less than the benefits.

Ans – a. Benefits are greater than the costs.

73. Which of the following establishes key dates throughout the life of a
project that must be met for the project to finish on time?

Select one:
a. Critical path
b. Ballpark estimate
c. Pert diagram
d. Slack chart
e. Milestone schedule

Ans – e. Milestone schedule

74. Which of the following statements about risk is true?

Select one:
a. Project risk focuses on identifying, assessing, and eliminating the risks on
the project.
b. Risk management is all about eliminating risk.
c. Project risk is an uncertain event that, even if it occurs, has no effect on
project objectives.
d. There are no risk-free projects.
e. Risk management involves identification, evaluation, and elevation of risk

Ans – d. There are no risk-free projects.

75. Why are changes to the project scope necessary?

Select one:
a. To understand reports
b. To reflect new information
c. To begin planning the project
d. To teach team members what they need to know about their jobs
e. To establish a trusting project culture

Ans – b. To reflect new information

76. Fill in the blank. Crashing refers to when the task duration’s
are __ along the critical path to meet the project completion date.

Select one:
a. scope creep
b. floated
c. slack
d. compressed
e. expedited

Ans – d. compressed

77. An Expected Monetary Value (EMV) of $100000 on a potential project

event in the project means which of the following?

Select one:
a. A number that can be ignored
b. An opportunity that must be explored
c. Actual losses on the event
d. Actual investment returns on the event
e. A threat that must be considered to minimize the project risk
Ans – b. An opportunity that must be explored

78. Which of the following is a form of trust that is built on the

examination of the person’s motives and the conclusion that he or she is
not hostile?

Select one:
a. Objective credibility
b. Attribution of benevolence
c. Non-manipulative trust
d. Unequivocal liberality
e. High cost of lying

Ans – b. Attribution of benevolence

79. When calculating EVM, Peter noticed that the cumulative planned
value is 150% of the cumulative earned value. What does this mean?

Select one:
a. SPI<1, so the project is behind schedule.
b. SPI>1, so the project is OK to complete on time.
c. SPI<1, so the project is ahead of time.
d. SPI>1, so the project is behind schedule.
e. SPI>1, so the project is on schedule.

Ans – a. SPI<1, so the project is behind schedule.

80. Fill in the blank. A __ represents the sequence of the activities needed
to complete the project.

Select one:
a. work break down structure
b. scope of work
c. project logic diagram
d. run chart
e. step change

Ans – c. project logic diagram

Dear all,
Following are true and false & fill in the blank questions. These
questions will definitely help you out in building a better understanding
of the subject and in solving the MCQs too.

PROJECT MANAGEMENT

1. Project cycle is a collection of generally sequential project phases

whose description and order of occurrence are determined by the
control needs of the organisation or organisations involved in the
project. (True/False)

Ans. True

2. Project management is the job of organising, coordinating, and

controlling the various tasks and resources in order to successfully
complete a project. (True/False)

Ans. True

3. To maximize returns in the current cut throat competitive

environment, it is vital to manage the ____ effectively.

Ans. Projects

4. ____ helps an organisation to prevent failures in projects.

Ans. Project management

5. Project Human Resource Management ensures that the most

appropriate manpower with necessary skills is deployed for an effective
execution of the desired project. (True/False)

Ans. True

6. Project Integration Management ensures that various elements of a

project are properly integrated and coordinated for smooth flow of
information and resources. (True/False)

Ans. True
7. A ____ of activities that are used to achieve the project’s goals or
objectives is known as the project life cycle. Ans. Rational order

8. In the ____ phase of the project life cycle the work gains momentum.

Ans. Quick Momentum

9. The ____ manages the four basic elements of a project: resources, time,
money, and scope.

Ans. Project Manager

10. Life cycle of a project manager ____ with the development life cycle.

Ans. Overlaps

11. Project management is a rationally planned and organised effort to

achieve a specific goal. (True/False)

Ans. True

12. Project closure involves releasing the final product to the customer,
handing over the project documentation, manuals, source code, and
network layouts. (True/False)

Ans. True

13. Project management consists of interacting processes namely ____,

____, process interactions, and ____ which are organised in groups.

Ans. Project processes, process groups, customisation

14. Project process is classified into ____ and ____ process.

Ans. Project management, product oriented

15. ____ and ____ refer to the mechanism applied on the inputs to create
the desired outputs.

Ans. Tools and techniques

16. The most important problem faced in the implementation phase of a

project is delay in execution. (True/False)

Ans. True
17. The system of monitoring and control is more effective when, along
with the time-frame, there is linkage between the physical work to be
performed in each activity and the financial expenditure to be incurred.
(True/False)

Ans. True

18. Project management provides the project managers and team

members with the principles they require to effectively meet the needs
of the customer. (True/False)

Ans. True

19. Scope, cost, and schedule are some of the parameters used for
project negotiation. (True/False)

Ans. True

20. Five dimensions that must be managed on a project are ____, ____, cost,
____, and staff.

Ans. Scope, quality, schedule

21. ____ of a project should be clearly defined, measurable, and

achievable.

Ans. Objectives

22. ____ is a continuous and repetitive process involving screening,

documentation, validation, ranking and approval of viable project ideas
for an organization.

Ans. Project identification

23. ____ study focuses on answering the essential questions such as;
should we proceed with the proposed project idea? What are the
benefits and drawbacks of proposed project idea?

Ans. Pre-feasibility

24. The function of project initiation is to describe all the parameters of

a project and establish the suitable project management and excellence
environment necessary to complete the project. (True/False)

Ans. True
25. The project manager works with the project sponsor to identify the
necessary resources and team members needed to further develop the
key project parameters – Cost, Scope, Schedule, and Quality (CSSQ).
(True/False) Ans. True

26. Various choices of ____ that are available for constructing and
developing the project should be examined.

Ans. Techniques

27. ____ should be made of all cost factors so as to reflect on all relevant
investment and operational costs of the project including contingencies.

Ans. Realistic estimates

28. Feasibility analysis is the first stage in the process of project

development. (True/False)

Ans. True

29. The purpose of the analysis is to examine the desirability of investing

in pre-investment studies. (True/False)

Ans. True

30. The technical feasibility aspect of a project relates to the earning

capacity of the project. (True/False)

Ans. False

31. ____ is a financial term to describe a business or project where the

sales revenue is equal to total expenses.

Ans. Break-even

32. If the break-even point lies ____ anticipated demand, implying a loss
on the product, and then the product may be discontinued or, may
receive additional advertising and/or be re-priced to increase demand.

Ans. Above

33. In the ____ stage, of project identification the project ideas generated
above are screened and a preliminary exercise is conducted to weed out
the bad or unviable ideas.
Ans. Screening

34. Good plans always do not allow for flexibility to adapt to changing
circumstances. (True/False)

Ans. False

35. The planning and scoping should be such that the project manager
can assess every stage of the project and the quality of the deliverable of
the project at every stage.(True/False)

Ans. True

36. The ____ then submits the proposal to get it investigated on its
viability, evaluation and selection

Ans. Client

37. The project team documents its charge in the form of a ____,which is
based on the project proposal and business case.

Ans. Project charter

38. ____ builds on the work done in project initiation through the
development of a project plan.

Ans. Project planning

39. ____ is where most of the resources are applied / expended on the
project.

Ans. Project execution and control

40. The ____ of project close out assessment is to document the best
practices and lessons learned for use on future projects.

Ans. Primary purpose

41. The players in a project management are the individuals and the
organisations. (True/False)

Ans. True

42. Other reported advantages include a sharper orientation toward

results, better interdepartmental coordination, and higher worker
morale. (True/False)
Ans. True

43. Project planning involves three processes:____ review, and ____

Ans. Identification, analysis

44. Subsequent to preparing ____, the team plans the project schedule and
budget.

Ans. Work Breakdown Structure

45. If all the steps of project planning are performed successfully, ____
and planning become effective and the ideal outcomes are achieved.

Ans. Scoping

46. The entire process of a project may be considered to be made up on a

number of sub-processes placed in different stages called the Work
Breakdown Structure. (True/False)

Ans. True

47. WBS is produced by identifying the key elements, breaking each

element down into component parts and continuing to breakdown until
manageable work packages have been identified. (True/False)

Ans. True

48. ____ is a significant facet of project management.

Ans. Project planning

49. All projects are basically ____, requiring huge money for completion
and earning no return till their successful completion.

Ans. Capital projects

50. The purpose of project planning is to identify various areas of the

project work and the influencing factors, and subsequently define the
boundaries of the project performance. (True/False)

Ans. True

51. ____ structures are typically used in businesses that primarily sell and
produce standard products and seldom conduct external projects.
Ans. Functional-type organisation

52. In a ____, the employees work for different projects in a team-like

structure.

Ans. Project-type organisational structure

53. ____ is the most common type of project organisation.

Ans. Matrix-type organisation

54. In matrix-type organisation, ____ provide the resources needed and

the ____ is responsible for the project results.

Ans. The functional managers, project manager

55. ____ structures are also referred as the Organisational Chart.

Ans. Organisational

56. A project leader or manager is expected to be completely

accountable for his team members and meeting the

team’s targets. (True/False)

Ans. True

57. Project leader role will require an individual with strong

management skills. (True/False)

Ans. True

58. The Project Leader is the person responsible for the overall project.
(True/False)

Ans. True

59. ____ is the oldest and simplest type of organization where the line of
command is fulfilled from top to bottom.

Ans. Line organisation

60. ____ have the principal responsibility of achieving the target goals of
the firm and have the decision-making authority.

Ans. Line managers

61. The matrix organisation is conducive for ____.

Ans. Project management

62. In large organisations, project management shall be of line type

function where the project manager shall have ____ and has total formal
control over the division he or she heads.

Ans. Full line authority

63. ____ identified six distinct leadership styles.

Ans. Daniel Goleman

64. In ____ style, a leader issues orders without any discussion with
members.

Ans. Coercive

65. In ____ style, project manager shares his or her vision with the team
but permits them to use their respective ideas to come up with a
solution.

Ans. Authoritative

66. High-performance standards are set for team member’s in____ style.
Ans. Pace-setting

67. Lack of motivation among employees and low quality of production

occurs in ____.

Ans. Theory X

68. The smoothing method reduces the scale of conflict by making

differences seem less important. (True/False)

Ans. True

69. In the method of problem solving, a committee is set up to find a

solution. (True/False)

Ans. True

70. Withdrawal may be the most effective way to settle conflicts.

(True/False)
Ans. False

71. Forcing method of resolving conflict is used when one person has
authority over another and uses it. (True/False)

Ans. True

72. A ____ needs to possess excellent analytical and organisational skills

to manage a project team.

Ans. Project Manager

73. Diversity management is a management strategy to promote and

maintain a ____ environment in the organization

Ans. Positive workplace

74. A strong ____ programme encourages the development of skills and

talents of the employees.

Ans. Diversity management

75. Diversity management works on the principle of ____

Ans. Acceptance