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

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”.

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?

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?

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?

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

Answer: 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?

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.

a. completion
b. closeout
c. execution
d. planning
e. initiation

Answer: 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?

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.

Answer: 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?

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

Answer: b Because resources on the project management team may view it as temporary

9. According to Bruce Tuckman’s five stages of team development, project team members compete for control at which stage?

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:

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

Answer: 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?

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

Answer: 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?

a. Benchmarking
b. Expediting
c. Procurement
d. Delegation
e. Solicitation

Answer: 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?

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?

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

Answer: b Detailed activity lists and WBS dictionary

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

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

Answer: 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”?

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:

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?

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.

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?

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?

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?

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:

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?

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?

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?

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?

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?

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?

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?

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?

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?

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:

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?

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?

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?

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?

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?
a. 80%

b. 53%

c. 45%

d. 35%

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?

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?

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:

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.

Answer: 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.

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?

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

Answer: 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:

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

Answer: 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?

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

Answer: d $875,000

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

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.

Answer: 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?

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.

Answer: 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.

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

Answer: 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 ?

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.

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.

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

Answer: 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?

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

Answer: 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.

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

Answer: b achievement

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

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.

Answer: 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.

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

Answer: b start-up

55. After the celebration of the successful milestone completion, a project manager will often do which of the following?

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.

Answer: 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?

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

57. What is the first step in project planning?

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.

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.

a. completion
b. closeout
c. execution
d. planning
e. initiation

Answer: 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?

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

Answer: 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?

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

Answer: d Developing role clarification on projects

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

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.

Answer: 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.

a. collaborating
b. compromising
c. accommodating
d. forcing
e. avoiding

Answer: d forcing

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

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

Answer: e quality audit

64. Which of the following is an advantage of including the project manager in the project evaluation process?

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.

Answer: 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?

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.

Answer: b They do not lend themselves to create an environment of trust.

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

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

Answer: 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 favorite choice?

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

Answer: 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?

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.

Answer: 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?

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.

Answer: 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?

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

Answer: d Projectized organization

71. Complete the following statement. The method of incorporating change into project planning and execution processes is called the:

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

Answer: b change management process

72. BCR>1 indicates which of the following?

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.

Answer: 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?

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

Answer: e Milestone schedule

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

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

Answer: d There are no risk-free projects.

75. Why are changes to the project scope necessary?

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

Answer: 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.

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

Answer: d compressed

77. An Expected Monetary Value (EMV) of $100000 on a potential project event in the project means which of the following?

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

Answer: 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?

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

Answer: 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?

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.

Answer: 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.