Question 1: As a project manager, you would like to develop a procurement statement of

work. This would require:

1. Scope statement and WBS

2. WBS only

3. Contract

4. Scope baseline
Question 2: Perform Integrated Change Control process requires coordinating changes
across knowledge areas. When a proposed schedule change occurs, which of the following
will not be affected?

1. Cost

2. Quality

3. Staffing

4. Communications
Question 3: As a project manager, you are aware that the best way to resolve conflicts is to
face the conflict directly. This involves an problem-solving approach, whereby affected
parties work through their disagreements. In this context, the sources of conflict with the
least intensity are:

1. Schedule, priorities, and manpower

2. Cost, personality conflict, and administration

3. Technical issues, administration, and manpower

4. Cost, schedules, and priority

Question 4: In your project, you estimate the cost of individual activities or work packages,
and then roll up the individual estimates for subsequent reporting and tracking purposes.
This can be done using:

1. Bottom-up estimating

2. Analogous estimating

3. Parametric modeling

4. Top-down estimating
Question 5: The scope of your project is very well defined and you have completed all the
work described in the contract to your satisfaction, but you think your buyer is not happy
with the work. What should you do?

1. Go through arbitration proceedings to ensure that disputes are resolved

2. Talk with senior management about changing the scope of the project to accommodate
requirements that would satisfy the customer

3. Ask the customer for input and get her advice on changes that need to be made

4. Move to contract close-out

Question 6: In your project, you are preparing bid documents to seek proposals from
prospective sellers. Which of the following statements about procurement documents are
accurate?

A. The buyer structures the bid documents to facilitate an accurate and complete response
from prospective sellers.

B. Requests to potential sellers to submit a proposal or bid is formally issued in accordance

with the policies of the buyer`s organization.

C. With government contracting, some or all of the content and structure of procurement
documents can be defined by regulation.
D. The term “proposal” is usually used when the seller selection decision will be based on
price.

1. B, C and D

2. Only B and C

3. All of the Above

4. A, B and C
Question 7: In your project, your subcontracting requirements of the machining of high-
value equipment are very demanding. Hence, you have determined the technical criteria to
evaluate the sellers. This is an example of:

1. Objective evaluation criteria

2. Source selection criteria

3. Statement of work

4. Work breakdown structure

Question 8: Project scope management includes the processes required to ensure that the
project includes all the work required and only the work required to complete the project
successfully. In this context, the project charter plays a very important role because it:

1. Provides a list of project deliverables

2. Provides high-level project description and product characteristics

3. Provides deliverable oriented grouping of work components

4. Describes the project plan parameters, i.e., quantifiable criteria that must be met for the
project to be considered successful
Question 9: You are working as a project manager in an IT company. Your project is facing
major difficulties in the quality of its deliverables and you are getting recurring problems.
The project sponsor has insisted that no compromise can be made in the quality of the
deliverables. In this context, if the problem persists, the BEST option you would choose as a
project manager to remedy the problem is to:

1. Allow increase in cost of quality but ensure that the root cause of the problem is fixed

2. Reduce the project scope to increase project quality

3. Fix a problem as soon as it occurs

4. Prevent change requests to ensure quality

Question 10: Your construction company recently secured a project to build a new
overpass on Interstate 10. You have been appointed as project manager for the assignment.
Your company has successfully executed similar projects in the past, and you would like to
refer to the past project documents. At what stage of the project should this be done FIRST?

1. Executing

2. Initiating

3. Planning

4. Monitoring and Controlling

Question 11: You are the project manager for a high priority project for your company.
You just came out of a meeting with the project sponsor where you informed her that the
project's current SPI is 0.7 and the CPI is 1.3. On your way back to your desk, you pass by
some team members who appear to be engaged in a dispute, so you ask them what's going
on. It seems that one of the team members had been discussing the product requirements
with the operation's manager who made some valid requests for the product that he thinks
should be part of the product's scope. The other team member says the operation's
manager was not an identified stakeholder for the project so his requirements should not
be considered. As the project manager, what should you do?

1. Identify the operations manager as a valid stakeholder and review his requests and
possibly take them through change control.

2. Tell the team members to confront their issue and work it out among themselves.
3. Tell the team members you will advise the operations manager that the team will discuss
his requests and get back to him.
4. Tell the team members to stop wasting time arguing and get back to work since the
project is behind schedule.
Question 12: In your project, you are formalizing acceptance of the completed project
deliverables. This is done during:

1. Perform Integrated Change Control

2. Validate Scope

3. Control Scope

4. Control Communications
Question 13: What contains a predetermined list of risk categories that might give rise to
individual project risks and that could also act as sources of overall project risk?

1. Risk strategies

2. Risk prompt list

3. Risk register

4. Risk report
Question 14: In your project, you are using the Control Communications process to
organize and summarize the information gathered. Later, you present the results of the
analysis as a comparison to the performance measurement baseline. Some common
formats for performance reports that you could use are:

1. S-curves, histograms, pareto diagrams

2. S-curves, responsibility assignment matrices, histograms

3. Bar charts, S-curves, histograms

4. Bar charts, control charts, histograms

Question 15: Your organization has to follow some guidelines and policies while recruiting
people. From your project perspective, these guidelines and policies will be classified as:

1. Regulations

2. Best practices

3. Assumptions

4. Constraints
Question 16: Your project sponsor has specified that you have to complete your project
within 3 months with a funding limit of $250,000. This is an example of:

1. Authoritative project management

2. Constraint

3. Assumption

4. Laissez-faire management
Question 17: You are the project manager of an IT company. You are creating a collection
and filing structure that details methods used to gather and store various types of
information, and also procedures to collect and disseminate updates and corrections to the
concerned stakeholders. Where will you include this information?

1. Information retrieval system

2. Information distribution methods

3. Communications management plan

4. Project records
Question 18: You are a project manager and have just discovered a risk in your project
that requires an immediate corrective action. During which Project Risk Management
Process is this action performed?

1. Plan Risk Management

2. Identify Risks

3. Perform Qualitative Risk Analysis

4. Monitor Risks
Question 19: Which of the following decision-making techniques used in the Plan Quality
Management process?

1. Multicriteria decision analysis

2. Mind mapping

3. Marginal analysis

4. Maslow’s hierarchy of needs

Question 20: As part of decomposing, you break down the project work that needs to be
accomplished in the near term at a low level of WBS. However, the work planned in the
future is broken down at a relatively high level of WBS. This technique is called:

1. Procrastination

2. Delaying tactics

3. Futuristic planning

4. Rolling wave planning

Question 21: Please refer to the following diagram:

Tasks A, B, C and D are in the critical path of a project, all the tasks are estimated to
required similar effort of 5 days each and cost $5,000 per task

At the end of day, task A and B are complete, task C is 50% complete, and $13,000 has
already been spent.

What is the Earned Value (EV)?

1. $5,000

2. $10,000

3. $11,000

4. $12,500
Question 22: At what stage of the project are factors like probability of successfully
completing the project, cost of changes, and cost of error correction, the highest?

1. Beginning

2. End

3. Executing

4. Beginning and end

Question 23: Which of the following statements about the activity list produced as an
output from the Define Activities process is incorrect?

1. The activity list must include all activities that will be performed on the project

2. The activity list should include descriptions of major activities in sufficient detail

3. The activity list should include activity duration estimates and scope of work description
for each activity

4. The activity list is obtained through decomposition of work packages.

Question 24: You would like to use decomposition for dividing and subdividing the project
scope and project deliverables into smaller, more manageable parts. Which of the following
statements about decomposition is incorrect?

1. All deliverables have similar levels of decomposition.

2. The project team needs to seek a balance between too little and too much in the level of
WBS planning detail.

3. The decomposition of the upper level WBS components requires subdividing the work
for each of the deliverables or subprojects into its fundamental components.

4. Decomposition is done as part of Create WBS process.

Question 25: In your project, you have completed the Identify Risks process to determine
which risks may affect the project, and a risk register has been prepared. What should you
do NEXT?

1. Risk probability and impact assessment

2. Avoid, transfer, or mitigate negative risks

3. Exploit, share, or enhance opportunities

4. Audits
Question 26: It is important to gather and analyze all relevant information to determine all
project stakeholders and what their respective interests, expectations, and influences are.
It is also useful to identify stakeholder relationships that might enhance the project's
success. This information is documented in the:

1. Stakeholder Directory

2. Stakeholder Analysis Matrix

3. Stakeholder Register

4. Stakeholder Management Plan

Question 27: Once ground rules are established as part of the team charter, and
communicated to the project team, the responsibility of enforcing these rules lies with the:

1. Project manager

2. Project management team

3. Project team members

4. Project sponsor and project manager

Question 28: Your company exhibited a car model in two international auto expos and
obtained feedback from the global automobile industry, auto magazines, and others. The
company decided to go ahead with the designing and manufacturing of the car, taking into
consideration the feedback received. Which of the following methods did your company
use to make this decision?

1. Observation technique

2. Prototype

3. Requirement documentation

4. Requirement traceability matrix

Question 29: You are the project manager in a pharmaceutical company. You are
constantly involved in managing stakeholders’ expectations to satisfy their needs and
resolve issues. In this context, which of the following is NOT a relevant output?

1. Organization process assets updates

2. Change requests

3. Project management plan updates

4. Communications requirements analysis

Question 30: Which of the following conflict resolution modes involves emphasizing areas
of agreement rather than areas of disagreement in order to resolve a conflict?

1. Withdraw/Avoid

2. Force/Direct

3. Smooth/Accommodate

4. Compromise/Reconcile
Question 31: If there is a fire, the risk response plan developed is to use a fire extinguisher.
If the fire extinguisher cannot take care of the fire, you call in a fire engine. Calling in the
fire engine is an example of:

1. Secondary risk

2. Residual risk

3. Fallback Plan

4. Work around
Question 32: Which of the following statements about stakeholders are correct?

A. Project manager must try to satisfy even the implicit requirements of stakeholders.
B. Only those stakeholders who are project team members should be involved in the
creation of project plan.

C. Both stated and unstated needs of stakeholders should be properly identified.

D. Some stakeholders may provide conflicting requirements.

1. B, C and D

2. A, C and D

3. Only C

4. Only D
Question 33: You are the project manager for an initiative to release a new product in the
market. But because of government regulations, you will have to make some changes to the
requirements documentation and the WBS. The changes made in the requirements
documentation are reflected in the:

1. Project document updates

2. Work breakdown structure

3. Project plan

4. Project charter
Question 34: The customer was not satisfied with the finished product’s quality. The cost
of poor quality can also be referred to as:

1. Cost of conformance

2. Failure cost

3. Rework cost

4. Opportunity cost
Question 35: Which of the following items is not included in schedule data?

1. Order and delivery schedules

2. Cash-flow projections

3. Resource histograms

4. Cost baseline
Question 36: A project manager is responsible for managing project costs and human
resources. Factors like cost and staffing level for a project:

1. Increase with duration of the project

2. Decrease with duration of the project

3. Are low at the start, peak as the work is carried out, and drop rapidly as the project
draws to a close

4. Cannot be determined, as they are specific to the project

Question 37: As a project manager you are using a technique call Design for X (DfX) during
the design a product for the optimization of a specific aspect of the design. In this context,
the X in DfX can refer to:

1. Different aspects of product development

2. Different aspects of issue management

3. Different aspects of quality management

4. Different aspects of risk management

Question 38: While preparing the schedule for the project activities, you find that there is
very limited information on activity durations, so you wish to use the actual duration of a
previous, similar activity as a basis for estimating future activity. Which estimating tool do
you use?

1. Three-point estimates

2. Parametric estimating

3. Quantitative estimating

4. Analogous estimating
Question 39: Please refer to the following diagram:

Tasks A, B, C and D are in the critical path of a project, all the tasks are estimated to
required similar effort of 5 days each and cost $5,000 per task

At the end of day 11, task A and B are complete, task C is 50% complete, and $13,000 has
already been spent.

What is the status of the project?

1. Behind schedule, Under budget

2. Ahead of schedule, Under budget

3. Ahead of schedule, Over budget

4. Behind schedule, Over budget

Question 40: For large procurements, your company may elect to either prepare its own
independent estimate or have a cost estimate prepared by an outside professional
estimator to serve as a benchmark on proposed responses. This can also be referred to as:

1. Preferred price

2. Independent Estimate.

3. Fixed price contract

4. Careful cost budgeting

Question 41: As a project manager, you are aware that project management process
groups are linked by their objectives. Planning process group outputs including the project
management plan become inputs for project implementation. In this context, which of the
following statements is inaccurate?

1. Process groups are non-overlapping activities that occur with varying intensity
throughout the project.

2. If the project is divided into phases, the process groups interact within a project phase
and may also cross over to other phases.

3. Not all processes will be needed on all projects and not all of the interactions will apply
to all the projects or process groups.

4. Among the process groups and their processes, the process outputs are related and have
an impact on the other process groups.
Question 42: Frequent heated discussions with your colleague over an issue are creating a
hostile environment. To ease this situation, you agree with your colleague`s point of view.
The conflict resolution mode that you are using is:

1. Collaborate or Problem Solve

2. Withdraw or Avoid

3. Force or Direct

4. Smooth or Accommodate
Question 43: Which of the following is a hybrid type of contractual arrangement?

1. Time and material contracts

2. Fixed-price contracts

3. Cost-reimbursable contracts

4. Fixed price with redetermination

Question 44: You are the buyer for a procurement contract and your team is receiving bids
or proposals for evaluation. These will be evaluated during:

1. Conduct Procurements process

2. Plan Procurement Management process

3. Control Procurements process

4. Select Sellers process

Question 45: A new project manager has been appointed to manage a project which was
terminated six months earlier because of funding related issues. The project manager
wants to find out the exact reasons for the termination of the project. He also wants to
know which deliverables were produced from the terminated project. Which of the
following document(s) should the project manager refer to?

1. Final product, service, or result transition

2. Project files

3. Historical information

4. Project closure documents

Question 46: In your project, you use the Earned Value Management (EVM) to measure:

1. Work performance and magnitude of variation

2. Work schedule

3. Risk responses

4. Activity duration
Question 47: A flow chart is a diagram, which shows how various elements of a system
relate and includes tools like "cause and effect diagrams" and "flowcharting". As a project
manager, you find "cause and effect diagrams" a useful tool for:

1. Showing the relationship between two variables

2. Identifying which factors may influence specific variables of a product or process under
development or in production

3. Determining whether or not a process is stable or has predictable performance

4. Illustrating how various factors might be linked to potential problems or effects

Question 48: You are a project manager working on a $3 billion plan to revitalize unused
parts of a city. You are in charge of building an Observation deck/Topiary garden. You have
created the following diagram (duration in weeks):

What is the total float for task G?

1. 0 weeks

2. 1 week

3. -1 week

4. Cannot be determined
Question 49: Project Integration Management includes the processes and activities needed
to identify, define, combine, unify and coordinate the various processes and project
management activities within the Project Management Process Groups. When a project is
initiated, one of the processes taken up early on in the project initiation stage is:

1. Identify Stakeholders

2. Define Scope

3. Plan Resource Management

4. Develop Project Management Plan

Question 50: Your bank is launching an advertisement campaign for a new product. You
have been instructed by the project sponsor to complete some milestones with the
available skilled resources. From a project management perspective, this is:

1. Constraint

2. Assumption

3. Discretionary dependency

4. Mandatory dependency
Question 51: In your project, as part of the Manage Communications process, you have
created an information retrieval system, which helps team members and stakeholders to
share information. What will you do next?

1. Create a communications management plan

2. Identify and document the approach to communicate effectively and efficiently with
stakeholders

3. Determine methods of accessing information for scheduled communications

4. Conduct regular status review meetings to exchange information on the project

Question 52: You are working on a construction project. You gather data regularly on the
productivity of several employees and tasks (e.g., concrete poured per hour, length of
electrical wiring done by a person per day, etc.). You compare this with that of similar
projects embodied in your organizational process assets. This is a real-life example of:

1. Force field analysis

2. Cost of quality

3. Benchmarking

4. Design of experiments
Question 53: Inspection includes activities such as measuring, examining, and testing
undertaken to determine whether results conform to requirements. Which of the following
terms does not refer to inspection?

1. Product review

2. Audit

3. Walkthrough

4. Stage-gate
Question 54: Which of the following processes identifies the relationship among project
activities?

1. Sequence Activities

2. Estimate Activity Durations

3. Define Activities

4. Control Schedule
Question 55: In your project, you identified disaster situations (e.g. floods, earthquakes,
etc.) as potential risks. The project sponsor suggested that, at the project level, no steps
could be taken to deal with such risks and recommended creation of a contingency reserve
(with 5% of the project budget) which could be used in case of disaster situations. This is
an example of:

1. Risk mitigation

2. Risk acceptance

3. Risk avoidance

4. Bad policy decision

Question 56: In your current role as a project manager, you track, review, and regulate the
progress of your project. Which of the following would you not use to perform these
activities?

1. Project management plan

2. Performance reports

3. Organizational process assets

4. Approved change requests

Question 57: To know who will approve the changes in your project deliverables and
documentation, you should refer to:

1. Change control system

2. Project plan

3. Organization chart

4. Resource assignment matrix

Question 58: ___________________________ is used as a measure of schedule performance
expressed as the difference between the earned value and the planned value.

1. Cost variance

2. Schedule variance

3. Schedule performance index

4. Cost performance index

Question 59: Your project involves creating a launch vehicle for NASA satellites. For
successful project implementation, it is important to coordinate activities with other NASA
operational groups and also divide your project into several phases to provide better
management control. To facilitate this, you should (select the BEST answer):

1. Break the project into several sub-projects.

2. Use life cycle approach to manage the project.

3. Develop specific deliverables, which are approved by the sponsor.

4. Create a very comprehensive project charter.

Question 60: You have undertaken a project under contract, where you are supposed to
create an anti-virus software product for a customer in ten months. You follow the
software development life-cycle which includes analysis, high-level design, low-level
design, coding, testing, and rollout, with a deliverable at the end of each phase. Your
customer has defined the scope very well, and said that he is going to review your product
after ten months. In this case, you should:

1. Insist that the customer verify the deliverables at the end of each phase

2. Ask your senior management to review the deliverables at the end of each phase to
ensure that the deliverables satisfy customer requirements

3. Complete the product as per specifications and provide the completed product to the
customer as requested

4. Provide project deliverables to the customer at the end of each phase, even if the
customer does not review them
Question 61: The customer communicates a request for a change in your project plan.
What should be your first step towards addressing the change request?

1. Talk with team members to understand implications of the change.

2. Communicate the change to the management to get their inputs.

3. Open up a change control.

4. Implement the change and communicate to the customer.

Question 62: You are creating a project charter to formally authorize the project. A project
statement of work will be helpful in creation of the charter. In this context, which of the
following is NOT a part of project statement of work?

1. Product scope description

2. Business need

3. Strategic plan

4. Project manager name

Question 63: At times, a contract can be terminated early (before contract completion).
Which of the following cases can lead to contract termination?

A. Mutual agreement of both parties

B. Default of one party

C. Convenience of the seller, if they cannot deliver as per the contract statement of work

D. Convenience of the buyer, if provided for in the contract

1. A, B and C

2. Only A and B

3. A, B and D

4. All of the Above

Question 64: In your construction project, the CPI is 0.85 and SPI is 1.25. What could be
the possible reason?

1. A critical resource went on sick leave for a long period of time, which had not been
anticipated earlier.
2. The cost of raw materials required for construction increased by 10%. You had
anticipated a cost increase of 12% in your project plans.

3. In anticipation of delays, the project was crashed to decrease the duration.

4. There was four days waiting time in the curing of concrete, and work could not be done
during that time.
Question 65: In your project, you have completed the Identify Risks process to determine
which risks may affect the project, and a risk register has been prepared. What should you
do NEXT?

1. Risk probability and impact assessment

2. Avoid, transfer or mitigate negative risks

3. Exploit, share or enhance opportunities

4. Risk audits
Question 66: In your project, you wish to include certain significant events in the
milestone list for the project based on historical information. Such milestones are:

1. Optional

2. Mandatory

3. Statutory

4. Authorized
Question 67: Given the current and desired engagement levels of stakeholders in the
following Stakeholder Engagement Assessment Matrix, which would be the most important
gap to be addressed by the project manager as soon as possible?

Stakeholder Unaware Resistant Neutral Supportive Leading

Sponsor C D
CEO C D
Team Member C/D
C = Current Engagement Level; D = Desired Engagement Level

1. CEO

2. Team member

3. CEO and Sponsor

4. Sponsor
Question 68: You have recently joined as a project manager of an equipment
manufacturing company. Your project sponsor stresses the importance of obtaining
stakeholders` formal acceptance of completed deliverables. This should be done:

1. At the end of the project

2. At the end of each project phase

3. After deliverables are completed and ready for review

4. After project milestones are defined

Question 69: You are preparing a quality management plan for your project. Which of the
following will you use in this process?

A. Cost-benefit analysis

B. Quality checklists

C. Cost of quality

D. Benchmarking

1. B, C and D

2. A, C and D

3. A, B and D

4. A, B and C
Question 70: You are managing the construction project of a highway overpass. The
project is critical, and must stay on schedule in order to not cause delays in subsequent
projects being planned. Your sponsor has placed a lot of pressure on you to ensure that you
do a good job of planning the schedule for this project so it can be submitted to the project
managers of those subsequent projects to be taken into account during their planning
processes. You would like to use the best practices in the road construction industry to help
you in your project. Which of the following tools of Sequence Activities process are based
on these best practices?

1. Mandatory dependencies

2. Discretionary dependencies

3. Industry norms

4. Best Practice standards for ISO 9001 certification

Question 71: Your customer wants some change to be effected in the project scope. You
determine that the change in scope will not impact the project schedules but will cost the
project an additional $50,000. What should you do FIRST?

1. Try crashing or fast tracking the project.

2. Do not allow the customer to change the project scope.

3. Let the customer know about the impact of the change in project scope and ask for
additional funding.

4. Discuss with your project sponsor.

Question 72: As a project manager, you understand the importance of identifying and
documenting project risks. In this context, which of the following statements is true?

1. Risk identification occurs during the Planning of the project

2. Risk identification occurs during Monitoring and Controlling of the project

3. Risk identification occurs during Execution of the project

4. Risk identification occurs during different project stages depending on the type of the
project
Question 73: You are the project manager of a new project, tasked with construction of a
bridge on the River Nile in Egypt. While initiating the project, you should:

1. Create a scope management plan to document project scope definition, verification, and
control

2. Develop a project management plan

3. Determine specific activities that need to be performed to produce various project

deliverables

4. Develop a project charter

Question 74: The Plan Risk Responses process helps the project manager to develop
options and actions to enhance opportunities and to reduce threats to project objectives.
The output from the Plan Risk Responses is updates to the risk register, which should be:

1. At the level of detail of work packages in the WBS

2. At the level of detail whereby actions can be taken

3. Able to identify and document residual risks and secondary risks

4. Used for periodic risk reviews to identify risk ratings and prioritization
Question 75: You are the project manager for a high-priority project that involves the
creation of a new product that is expected to bring the company out of debt within one year
of the product's release. At least half of the company's employees have played a significant
role in the project. The project team is currently creating deliverables and everyone in the
company is excited to see the project moving along as per the project management plan.
The wife of the company's CEO often comes into the office and loves to visit and socialize
with company employees. She is very interested in the project and often asks you and other
team members specific details about the project and how things are going. One day, she
presents an innovative idea to you for an additional product feature that she thinks
customers will love. What should be your NEXT step?

1. Advise her that the feature cannot be incorporated

2. Implement the feature since it sounds like a great idea

3. Talk to the CEO about his wife & acutes suggestion and see what he thinks

4. Tell her you & acute’ll speak with some customers and see what they think about the
new feature’
Question 76: If you would like to compare different suppliers and rate their proposals for
the purpose of procurements, you should use:

1. Bidder conferences

2. Selected sellers

3. Procurement documents

4. Source selection criteria

Question 77: Being a diligent project manager, you understand the importance of
identifying all project risks which can then be prioritized using the Perform Qualitative and
Quantitative Risk Analysis. In this context, which of the following tools and techniques can
be used for the Identify Risks process?

1. Document analysis, SWOT analysis, Root cause analysis, and Assumption and constraint
analysis

2. Assumptions analysis, risk probability and impact assessment, interviewing, and Delphi
technique
3. Expected monetary value, root cause analysis, influence diagrams, and documentation
reviews
4. Contingent response strategies, assumptions analysis, influence diagrams, and Delphi
technique
Question 78: In your project, you are now interested in determining the cause of variance
relative to the scope baseline and deciding whether corrective action is required. You
should use:

1. Configuration management system

2. Variance analysis

3. Re-planning

4. Earned value spreadsheets

Question 79: In your project, you have included contingency allowances in the cost
estimates of many schedule activities. In this context, which of the following statements on
contingency reserve is incorrect?

1. Quantitative analysis methods are used for developing contingency reserve.

2. Precise information on the project helps reduce contingency reserve.

3. Cost estimates may not include contingency reserve.

4. Contingency reserve may be a percentage of the estimated cost.

Question 80: In your pharmaceutical company, quality is an important criterion to
determine project success. Which of the following is not an example of cost of
nonconformance?

1. Training

2. Rework

3. Loss of reputation

4. Warranty
Question 81: You are working on a project that your company recently won through a
bidding process. It is still very early in the project, but the project charter is complete and
you are now creating the stakeholder register. Which of the following would be useful to
help you identity the project stakeholders?

1. Procurement statement of work

2. Agreements

3. Business case

4. Project management plan

Question 82: The project charter has been developed, and the project has been formally
authorized. A full-time project manager is appointed for the project. There is clarity about
the business needs, high-level project description, and product requirements that the
project is to address. A summary budget has also been approved. Given this information,
what activity should the project manager perform FIRST from the available options?

1. Lead and perform the work defined in the project management plan and implement
approved changes to achieve the project`s objectives.

2. Define, prepare, and coordinate all subsidiary plans and integrate them into a
comprehensive project management plan.

3. Track, review, and report the progress to meet the performance objectives defined in the
project management plan.

4. Review all change requests, approve changes, and manage changes to the deliverables,
organizational process assets, project documents, and the project management plan and
communicating their disposition.
Question 83: A conflict resolution technique that emphasizes areas of agreement is also
called:

1. Collaborate or Problem Solve

2. Force or Direct

3. Compromise or Reconcile

4. Smooth or Accommodate
Question 84: A contract which includes features of cost reimbursable and fixed price types
of contract is a:

1. Fixed price plus incentive fee contract

2. Cost plus award fee contract

3. Time and material contract

4. Cost plus fixed fee contract

Question 85: As a project manager, you are interested in creating a detailed project scope
statement to clearly define what work will be performed and what work is going to be
excluded. Which of the following will NOT be a part of this project scope statement?

1. Project exclusions

2. Work breakdown structure (WBS)

3. Project deliverables

4. Project assumptions and constraints

Question 86: In a normal distribution, standard deviation refers to:

1. Distance of measurement from the mean

2. Distance of measurement from the most likely value

3. Distance of measurement from the middle most value

4. A tool that is used in qualitative risk analysis

Question 87: Your contract is nearing completion when the buyer mentions that there are
some outstanding issues - this can be a potential dispute or conflict situation. In this
context, what is the best way to deal with a dispute in a contract?

1. Negotiation

2. Change request

3. Arbitration including mediation or alternative dispute resolution methods

4. Litigation in courts
Question 88: In your project, you are coordinating people and resources as well as
integrating and performing activities of the project in accordance with the project
management plan. This is performed during:

1. Initiating Process Group

2. Executing Process Group

3. Planning Process Group

4. Monitoring Process Group

Question 89: In the recent status meeting, you discover that your project has a 65 percent
chance of making a USD 100,000 profit and a 35 percent chance of incurring a USD 100,000
loss. What is the expected monetary value for the project?

1. USD 100,000 profit

2. USD 100,000 loss

3. USD 30,000 profit

4. USD 30,000 loss

Question 90: Which of the following is NOT a technique for resolving conflict?

1. Smooth

2. Escalate

3. Force

4. Collaborate
Question 91: During the Sequence Activities process, you realize that several tasks have
conditional branches (e.g., a design update is only needed if the inspection detects errors).
For this purpose, you may use Precedence diagramming method (PDM), which is also
referred to as:

1. GERT

2. AOA

3. AON

4. Conditional diagramming methods

Question 92: You are a project manager in a construction company specializing in
fabrication of steel parts for bridges. One of your tasks includes "building the steel deck,"
for which some standardized partially completed schedule network diagram documents
are available. These documents provide a detailed structure helping in the creation of
project network diagrams and are examples of:

1. Conditional diagramming method

2. PERT

3. System dynamics

4. Templates
Question 93: In your project, you are preparing the requirements management plan to
define and document stakeholders` needs to meet the project`s objectives. Which of the
following is not a component of the requirements management plan?

1. Traceability structure

2. WBS

3. Requirements prioritization process

4. Product metrics
Question 94: The dictionary meaning of authority is "power to influence or command
thought, opinion, or behavior." Your authority as a project manager is greatly dependent
on:

1. Support from functional managers

2. Support from senior management

3. Your influencing and leadership skills

4. Organizational structure
Question 95: Managing stakeholders allows the project manager to increase support and
decrease resistance from stakeholders with the ultimate goal of project success. Which of
the following are outputs of the Manage Stakeholder Engagement process?

1. Issue log, Change requests, Work performance information

2. Change requests, Stakeholder assessment matrix, Project documents updates

3. Change requests, Communication Management Plan updates, Stakeholder Engagement

Plan updates

4. Change requests, Organizational process assets updates, Team performance issues

Question 96: You are in the process of developing the project charter. Which of the
following forms the basis for the Develop Project Charter process?

1. Project Charter

2. Business Case

3. Deliverables

4. Project Management Plan

Question 97: As a project manager, you are aware that quality has costs associated with it.
Which of the following statements is NOT related to cost of quality?

1. Cost of appraising the product or service for conformance to requirements

2. Cost of rework

3. Costs incurred by investment in preventing non-conformance to requirements

4. Cost of evaluating alternative projects

Question 98: In your project, you are monitoring the status of the project's product scope
and managing changes to the scope baseline. In this context, you are using:

1. Control Scope process

2. Validate Scope process

3. Define Scope process

4. Plan Scope Management process

Question 99: In the project execution phase, deliverables are produced. While monitoring
and controlling project work, you track, review, and regulate the progress to meet the
performance objectives. In this context, what is NOT performed in the Monitor and Control
Project Work process?

1. Comparing expected project performance against the project plan

2. Monitoring implementation of approved changes as they occur

3. Providing information to support status reporting, progress measurement, and

forecasting

4. Providing forecasts to update current cost and current schedule information

Question 100: You note that the ability to influence the cost of a project is:

1. Greatest at the early stages of the project

2. Greatest at the middle of the project

3. Greatest at the project closure stage

4. Constant throughout the project

Question 101: You are interviewing candidates for the position of project manager in the
company. What is the most important characteristic you would like to see in a project
manager?

1. Technical knowledge of the business

2. Negotiation and convincing skill

3. Communication skill

4. Industry experience
Question 102: Project performance must be monitored and measured regularly to identify
variances from the plan. Which of the following processes does not belong to the
Monitoring and Controlling Process Group?

1. Validate Scope

2. Control Risks

3. Control Communications

4. Manage Quality
Question 103: You are the managing a complicated ERP implementation project. The
following provides information about one activity: deployment in your project:

Early Start (ES): 25 days

Late Start (LS): 30 days

Early Finish (EF): 50 days

Late Finish (LF): 55 days

Based on this information, you can deduce that:

1. The task is on the critical path.

2. The project may get delayed.

3. The project float is 5 days.

4. The task is not on the critical path.

Question 104: Which of the outputs of the Estimate Activity Resources process identifies
the types and quantities of resources required for each work package or activity in a work
package?

1. Basis of estimates

2. Resource requirements

3. Resource breakdown structure

4. Activity attributes
Question 105: Motivating your team members is important for the success of the project.
You understand from the HR manager that employees are motivated by self-esteem,
recognition, and self-actualization. To which theory is the HR manager referring?

1. Theory Y

2. Learning curve theory

3. Herzberg`s theory

4. Maslow`s theory
Question 106: Items at the lowest level of a Work Breakdown Structure are called:

1. Work Packages

2. WBS Dictionaries

3. Work Components

4. None of the above

Question 107: You are the project manager for a project, which is being managed under a
contract. You receive a change request from the buyer involving a government regulation.
What should you do FIRST?

1. Talk with team members to understand implications of the change.

2. Communicate the change to the management to get their inputs.

3. Open up a change control.

4. Implement the change and communicate to the customer.

Question 108: Your project is now in the executing stage. You just finished Qualitative Risk
Analysis and based on the results of the analysis, you planned the risk responses, but you
realize that the proposed response would exceed your authority as a project manager.
What should you do next?

1. Talk to your team and if they agree that it is the best response, implement the response.
2. Determine who should be notified about the threat and communicate the details to that
person.
3. In exceptional situations, a project manager can go beyond his authority. So, you can
implement the risk response if it is urgent.

4. As risk is an uncertainty, it may or may not happen. So, flag the risk and leave the
decision until it happens.
Question 109: Please refer to the following diagram:

Tasks A, B, C and D are in the critical path of a project, all the tasks are estimated to
required similar effort of 5 days each and cost $5,000 per task

At the end of day 11, task A and B are complete, task C is 50% complete, and $13,000 has
already been spent.

You know that current variances are typical, i.e., similar variances will not occur in future.
What is the cost performance index (CPI) for the project?

1. 0.96

2. 1.04

3. 1.00

4. 1.20
Question 110: You are a principal at an architecture firm which has made you the Project
Manager in charge of building four new apartment and office towers on a larger waterfront
construction. The project has a critical path of twenty-three weeks. What is the impact on
the duration of the critical path if the management wants you to complete the project in
twenty weeks?

1. Increases by three weeks.

2. Decreases by three weeks.

3. Remains the same.

4. Cannot be determined.
Question 111: As a project manager, you have created a document that describes the
procurement item in sufficient detail to provide a basis for the sellers to determine if they
can provide the item. This document is referred to as:

1. Statement of work

2. Contract

3. Procurement document

4. Procurement statement of work

Question 112: Ideally, when should a project manager be assigned to a project?

1. As soon as a project is authorized

2. Soon after the scope statement is finalized

3. When the WBS is completed

4. At any time during the project life cycle, depending on requirements

Question 113: In your project, your team is identifying which dependencies are
discretionary during the process of sequencing the activities. Discretionary dependencies
are sometimes referred to as:

1. Soft logic

2. Hard logic

3. Mandatory logic

4. Optional dependency
Question 114: Your company has implemented ISO standards for quality. In this context,
which of the following statements regarding quality is accurate?

A. The objective of audit is to compare project deliverables against the product

requirements as defined in the WBS.

B. Manage Quality process increases the probability of meeting the quality objectives as
well as identifying ineffective processes and causes of poor quality.
C. Control Quality is the process of monitoring and recording results of executing the
quality activities to assess performance.
D. The Quality management plan describes how the project management team will
implement the performing organization`s quality policy.

1. B, C and D

2. C and D

3. B and D

4. A, B and C
Question 115: Which of the following statements relating to product-oriented processes
and project management processes is accurate?

1. Product-oriented processes are defined in the project management life cycle

2. Product-oriented processes help in creating the project`s product

3. Project management processes rarely interact with product-oriented processes

4. Project management processes apply globally but to certain industry groups

Question 116: As a project manager, you know that project plan development is an
important element to manage projects. Develop Project Management Plan is done as part
of:

1. Initiating

2. Planning

3. Executing

4. Controlling
Question 117: In your project, you have used valuable inputs to capture quality control
measurements. The inputs used for this purpose are:

A. Risk register

B. Organizational process assets

C. Quality management plan

D. Work performance data

1. B, C and D

2. A, C and D

3. A, B and D

4. A, B and C
Question 118: You are managing a complicated software development project with several
deliverables. To be effective and to be alert to potential future problems, you monitor the
status of completion of the project deliverables. This information will be available to you in
the:

1. Work performance measurements

2. Project baseline changes

3. Work performance data

4. Earned value techniques

Question 119: A project team member informs you that a particular task is taking much
more time than what was budgeted. You are surprised because you, as a project manager,
had not anticipated this delay, and you ask for status reports and forecasts from all project
team members. Which process group are you in?

1. Initiating

2. Executing

3. Monitoring and Controlling

4. Planning
Question 120: You are the project manager for a new software development project. A
previously unidentified risk is discovered when the project is nearing completion. You
realize that this risk may adversely impact the project`s overall ability to deliver. As a
project manager, what step do you take FIRST?

1. Perform Quantitative Risk Analysis

2. Inform the project sponsor and the stakeholders about the potential impact of the risk on
the project

3. Perform Qualitative Risk Analysis

4. Mitigate the risk to reduce its impact

Question 121: Control Schedule is the process of monitoring the status of the project to
update project progress and managing changes to the schedule baseline. During this
process, you undertake various activities that allow you to identify any changes, or
potential changes to the project schedule. In this context, which of the following is NOT true
about the Control Schedule process?

1. Project manager determines the current status of the project schedule

2. Project manager influences the factors that create schedule changes

3. Project manager takes the anticipated changes through the change control process.

4. Project manager manages the actual schedule changes as they occur

Question 122: When should stakeholders be identified for the first time in a project?

1. When developing the project management plan

2. Either prior to or at the same time the project charter is developed and approved

3. When the stakeholder engagement plan is developed

4. When the stakeholder register is developed

Question 123: After joining as a stand-in project manager for an ongoing project, you are
informed by the team that certain features are being added to the deliverable which was
not asked for by the customer, to earn customer appreciation. In this situation:

1. You are concerned, because the project team is gold-plating

2. You are happy, because the project will `exceed customer expectations`

3. You are worried that this is going to increase the project size

4. You are undecided about the increase in the quality metrics of the project
Question 124: You are the project manager in a software company. As an output of the
Plan Resource Management process, you have developed the Resource Management Plan.
In this context, which of the following actions is NOT documented as a part of the Resource
Management Plan?

1. Members are designated as business analyst, technical architect, programmer, project

manager, team leader, etc.

2. Team performance assessment criteria are be determined by all appropriate parties and
incorporated in the Develop Project Team inputs.
3. Proper responsibility (work that a team member is expected to perform in order to
complete the project`s activities) is assigned to all the team members.
4. Mismatches between competencies and skills required to complete the assigned
activities and the competencies and skills of team members are identified.
Question 125: Which of the following is NOT a characteristic of external dependencies?

1. They involve a relationship between project activities and non-project activities.

2. They are usually outside the project team's control.

3. They are usually inside the project team's control.

4. They are identified by the project team during the process of sequencing the activities
Question 126: You work for a company which executes heavy engineering contracts. While
performing risk response planning for your project, you determine a risk that there is a
"Possibility of getting new orders in the future which are beyond the current capacity of
our production facilities." What should you do?

1. Classify this as a threat and create workaround plans.

2. Classify this as strength and create a fallback plan.

3. Classify this as a weakness and transfer it to another company.

4. Classify this as an opportunity and try to enhance or exploit the opportunity

Question 127: Your company is a pioneer in the construction industry. The government
recently floated a tender for setting up a new airport. Since you do not have all the requisite
skills within the company, you enter into a joint venture with a leading airport construction
company to bid jointly for the government contract. This is an example of:

1. Risk exploitation

2. Risk sharing

3. Risk enhancing

4. Risk mitigating
Question 128: What is the factor that helps a project manager gain maximum support
from the assigned project personnel?

1. Expertise

2. Work challenge

3. Authority of the project manager to penalize team members

4. Authority of the project manager to recommend promotions to team members on the
basis of their performance
Question 129: Which of the following best defines emotional intelligence?

1. The ability to make team members emotional to increase productivity.

2. The ability to inspire the team members when faced with tough deadlines.

3. The ability to resolve conflicts among team members.

4. The ability to manage the personal emotions of oneself and other people
Question 130: While doing a cost-benefit analysis, you determine that a new project has
60% probability of earning a profit of $1,000,000 or 30% probability of incurring a loss of
$500,000. What is the expected monetary value of the decision?

1. $400,000

2. $600,000

3. $450,000

4. $200,000
Question 131: You are managing a small project with five team members working part-
time. At the beginning of every week, you orally allocate work to all the team members.
This is an example of:

1. Work Authorization System

2. Improper planning because team members do not know in advance what needs to be
done at what time

3. Project time management plan

4. Project flexible time management plan

Question 132: You are in the initiating phase of your project and are involved with
creation of the project charter. Which of the following statements relating to the project
charter is NOT correct?

1. Includes or references the business need and product description.

2. Provides authority to the project manager.

3. Formally authorizes a project.

4. Authorized only by the project sponsor.

Question 133: When can the Agreements be amended?

1. Once an agreement is agreed upon, it cannot be amended.

2. Agreements can be amended till before the seller starts the work.
3. Agreements can be amended at any time prior to contract closure by mutual consent, in
accordance with the change control terms of the agreement. Such amendments are
typically captured in writing.

4. Agreements can be amended as when the buyer feels the need to amend it.
Question 134: You are in the process of selecting an appropriate type of contract for your
project. In this context, which of the following statements related to fixed price, cost
reimbursable, and time and material contracts is NOT correct?

1. In a fixed-price contract, the product is well defined.

2. In a cost reimbursable contract, the risk of the seller is low.

3. In a time and material contract, the risk of the buyer is low.

4. In a time and material contract, the type of payment is based on unit rates for work done.
The unit rate for work done is fixed, but the total cost increases with time.
Question 135: The project manager of a critical project in your company has to go on leave
and you have to take up his responsibility. In the project briefing, the outgoing project
manager tells you that the scope statement for the project has been documented, WBS has
been created by subdividing the major project deliverables into smaller, more manageable
components and an activity list has been prepared. What should you do NEXT?

1. Create Project Schedule Network Diagrams

2. Identify important project stakeholders

3. Create the project management plan

4. Create the project deliverables

Question 136: Please refer to the Decision Tree diagram given below. It shows the analysis
of profit/loss for the two alternatives (i.e., to build or buy).

What is the opportunity cost if the project manager decides to build instead of buy?

1. - $1,500

2. $3,500

3. $1,500

4. $5,000
Question 137: Please refer to the following diagram:

Tasks A, B, C and D are in the critical path of a project, all the tasks are estimated to
required similar effort of 5 days each and cost $5,000 per task

At the end of day 11, task A and B are complete, task C is 50% complete, and $13,000 has
already been spent.

You know that current variances are atypical, i.e., similar variances will not occur in the
future. What is the Estimate at Completion (EAC)?

1. $15,000

2. $20,000

3. $20,500

4. $22,000
Question 138: As the project manager of a project intended to mask stench from a gas
pipeline, you create the following Network Schedule Diagram (duration in weeks):

What is the effect on the project if the duration of task J is increased to 9 weeks?

1. No effect since task J is not on the critical path

2. Risk of the project will further increase

3. The overall time-frame required to complete the project will increase by 1 week

4. Project has to be fast tracked or crashed to prevent delay

Question 139: As a project manager, you need to constantly set up meetings in your
project. Which one of these is not a step in the meeting planning?

1. Prepare and distribute the agenda stating the objectives of the meeting

2. Ensure that the meetings start and finish at the published time

3. Ensure the appropriate participants are invited and attend.

4. Allow members to discuss an important topic even if it is not part of the agenda
Question 140: You have recently appointed a project manager to handle a critical project
in your organization. You want to give her the authority to apply organizational resources
to project activities. Which document should you use?

1. Resource authorization document

2. Work Breakdown Structure

3. Project charter

4. Project scope description

Question 141: You are defining a distribution of possible activity durations for each
schedule activity and calculating a distribution of possible outcomes for the total project.
This technique is known as

1. Resource leveling

2. Monte Carlo Analysis

3. Critical chain method

4. Critical path method

Question 142: In your project, you establish clear expectations regarding acceptable
behavior by project team members. You believe that early commitment to clear guidelines
will decrease misunderstanding and increase productivity. These expectations and
guidelines are also known as:

1. Team-building activities

2. Team charter

3. Interpersonal skills

4. Rules of conduct
Question 143: The following are the details of a project:

Payback: $2,000

Profit: $1,000

Project cost: $800

Life cycle cost: $1200

What is the Benefit Cost Ratio for this project?

1. 2.50

2. 1.25
3. 1.67

4. 0.83
Question 144: In your project, you would like to conduct a lesson learned session to
identify project successes and failures, as well as make recommendations to improve future
project performance. This is done during:

1. Project closure

2. Project initiation

3. Project life cycle

4. Project execution and project closure

Question 145: A non-governmental agency authorizes a project to provide potable water
systems, latrines and sanitation education to low-income communities. The need for the
project arose due to:

1. Market need

2. Business need

3. Social need

4. Legal requirement
Question 146: Which of the following statements about "Quality" and "Grade" is correct?

A. Grade is a rank given to entities having the same functional use but different technical
characteristics.

B. Low quality product may be of high grade.

C. Low grade product may be of high quality.

D. It is always a problem for the customers if the product is of high quality and low grade.

1. A and B

2. Only B

3. All of the Above

4. A, B and C
Question 147: In which of the following cases is a contract NOT legally binding?

1. The seller is not able to produce goods as part of the contract.

2. The signatory to the contract leaves the company.

3. Records management system

4. A contract containing provisions that violate the law of the land

Question 148: You are the project manager on a research project. You have received the
news that your shipment of supplies will be delayed by two weeks due to bad weather.
What will be your FIRST step?

1. Fast track the project to ensure that the project schedule is not delayed.

2. Determine how much float is available in that task.

3. Try to get additional supplies from an alternate location as soon as possible.

4. Take corrective action to minimize the impact of delay

Question 149: Your director has appointed you as a portfolio manager in the company.
Your responsibility as a portfolio manager is to:

1. Select and support projects or program investments

2. Manage groups of projects in a coordinated way

3. Create a unique product, service, or result

4. Ensure that customer requirements are satisfied through progressive elaboration of
projects
Question 150: You have created an Excel spreadsheet that shows cumulative cost at any
particular point of time in the project duration. Your director wants to review the project
costs and you decide to make a presentation. Cumulative costs plotted against time is
shown in the slide as a:

1. S-curve

2. Histogram

3. Control chart

4. Pareto diagram
Question 151: Careful and explicit risk management planning ensures possibility of
success of the other risk management processes. In this context, you use sensitivity
analysis to:

1. Determine which risks may affect the project

2. Determine which risks have the most potential impact on the project

3. Define how risk management processes will be performed

4. Define how to conduct risk management activities for a project

Question 152: You are the project manager in a company, which has a balanced matrix
organizational structure. Who do you report to?

1. Functional Manager

2. Program Manager

3. Chief Project Manager

4. Portfolio Sponsor
Question 153: Your current project has very limited information on activity durations. You
wish to use the actual duration of a previous, similar activity as a basis for estimating the
current activity duration. Once you have estimated the durations for the activities on the
project, what would be your next step?

1. Create an activity list.

2. Calculate early and late start and finish dates for the unfinished project activities.

3. Conduct performance reviews to determine variances.

4. Subdivide project work packages into smaller more manageable components for better
management control.
Question 154: Which of the following cannot be considered a benefit of a well-constructed
scope statement?

1. Provides a documented basis for making future project decisions

2. Develops common understanding of project scope among stakeholders

3. Provides knowledge of project justification, deliverables, and objectives

4. Provides a basis for time and cost estimates

Question 155: In your project, you use the Develop Team process to improve the
competencies and interaction of team members to enhance project performance. The
output from this process is:

1. Project team assignments

2. Physical resource assignments

3. Team performance assessments

4. All of the above

Question 156: Which project document is used for documenting and monitoring elements
under discussion or in dispute between project stakeholders?

1. Dispute log

2. Issue log

3. Change log

4. Problem log
Question 157: As part of Project Communications Management, you are monitoring
communications throughout the entire project life cycle to ensure the information needs of
the project and its stakeholders are met. This is done as part of:

1. Plan Communications Management

2. Manage Communications

3. Monitor Communications

4. Administrative closure
Question 158: A project manager intends to identify and document interactivity
dependencies. Which of the following inputs can the project manager use for this purpose?

A. Project Management Plan

B. Activity list

C. Project schedule network diagrams

D. Activity attributes

1. B, C and D

2. A, C and D

3. A, B and D

4. A, B and C
Question 159: Which of the following should be determined during the Plan Quality
Management process, so the cost of quality will include the number of tests, expected scrap,
etc.?

1. Sample frequency

2. Sample size

3. Sample time

4. Sample frequency and Sample size

Question 160: In your project, if the benefit cost ratio is greater than 1, it means that

1. The ratio of profits to cost is greater than 1.

2. The ratio of revenue to cost is greater than 1.

3. You should select this project from all other competing alternatives.

4. You should not select this project from all other competing alternatives
Question 161: You and your sponsor are in an important meeting to select a project from
among other projects having similar investments. In this context, you select the project
with:

1. Higher life cycle cost

2. Lower life cycle cost

3. Higher sunk cost

4. Lower sunk cost

Question 162: The value of work actually accomplished is also known as

1. Planned Value

2. Earned Value

3. Actual Cost

4. Budgeted Cost for Work Scheduled (BCWS)

Question 163: Which of the following may not be included in the organizational process
assets that influence the Estimate Costs process?

1. Historical information

2. Resource cost rate information

3. Lessons learned repository

4. Cost estimating policies

Question 164: In making investment decisions, the senior management in your company
prefers to use a rate that equates the present value of cash inflows with the present value
of cash outflows. This rate is also called:

1. Discount Rate

2. Benefit Cost Ratio

3. Internal Rate of Return

4. Net Present Value

Question 165: Your company (buyer) has entered into a few contracts recently that have
not been successfully implemented. Your sponsor calls for a meeting to determine what
should be the overall goal while you negotiate contracts. In this context, what should be the
most important objective of a contract?

1. Protect the interests of the project

2. Ensure that negotiation is conducted as per legal statutes

3. Negotiate for the best price and protect interests of the buyer

4. Objective could vary depending on the type of contract

Question 166: A description of how a project management team will implement applicable
policies, procedures, and guidelines to achieve the quality objectives is available in:

1. Operational definitions

2. Quality management plan

3. Checklists

4. Quality policy
Question 167: In the closure stage of your project, you are interacting with your team to
create lessons learned documentation, which will include recommendations to improve
performance of future projects. Which of the following will you NOT include in the lessons
learned documentation?

1. Cause of variances

2. Justification for corrective action chosen

3. Only positive aspects of the project which can be used by others in the company

4. Reasons for cost variances if the project is over-budget

Question 168: As individuals and/or organizations get more experienced at a task, they
usually become more efficient at it. The more times a task has been performed, the less
time will be required for subsequent iterations. This is an example of:

1. Theory X

2. Organizational process assets

3. Learning curve

4. Economics of scale
Question 169: You are the project sponsor for a reputed company, and you work with the
project management team in certain matters concerned with the project. Which of the
following is an area where you would NOT assist?

1. Project funding

2. Creating activity list

3. Clarifying scope

4. Monitoring progress
Question 170: You are trying to identify the type, quantity, and characteristics of resources
required to complete the project. In which process you would do this?

1. Acquire resources

2. Plan resource management

3. Estimate activity resources

4. Control resources
Question 171: Project Risk Management helps in maximizing the likelihood and impact of
positive events, and minimizing the likelihood and impact of negative events in the project.
In this context, Plan Risk Responses process:

1. Helps in defining how to conduct the risk management activities

2. Develops options, selects strategies, and agreeing on actions to address overall project
risk exposure, as well as to treat individual project risks.

3. Determines which risks may affect the project and documents their characteristics

4. Monitors residual risks, identifies new risks, and evaluates risk process effectiveness
Question 172: You are monitoring and recording results of assessing performance and
recommending necessary changes. What do you get from this exercise?

1. Quality control measurements

2. Quality management plan

3. Quality metrics

4. Quality checklists
Question 173: As a project manager, you would identify risks in which of the following
processes?

1. Identify Risks

2. Plan Risk Management and Identify Risks

3. Identify Risks and Control Risks

4. Perform Qualitative Risk Analysis and Control Risks

Question 174: Project initiation consists of processes that facilitate the formal
authorization to start a new project or a project phase. In this context, which of the
following is not performed during project initiation?

1. Create the project charter

2. Divide large or complex projects into phases

3. Involve customers and stakeholders

4. Create project scope statement

Question 175: In your project, you need to determine how each task is related to other
tasks. This will ultimately help you develop the schedule for the project. In which process
will you determine these relationships?

1. Define Activities

2. Estimate Activity Durations

3. Sequence Activities

4. Develop Schedule
Question 176: In the Control Schedule process, changes to project schedule can result in
change requests to:

1. Schedule baseline

2. Components of project plan

3. Activity attributes

4. Schedule baseline and/or components of project plan

Question 177: You are the project manager overseeing construction of a resort on prime
oceanfront property in New York. In this context, which of the following processes enables
you to understand the amount of time each activity will take to complete?

1. Define Activities

2. Estimate Activity Durations

3. Define Activities

4. Sequence Activities
Question 178: In the Control Procurements process, you are responsible to complete each
project procurement to support the Close Project or Phase process. In this context, the final
equitable settlement of all outstanding issues, claims, and disputes by negotiation is done
through:

1. Procurement Negotiations

2. Procurement audits

3. Litigation

4. Claims administration
Question 179: The project scope statement consists of the product scope description and
project deliverables. It also defines the:

1. Scope Baseline

2. WBS

3. Product acceptance criteria

4. WBS dictionary
Question 180: In your project, you have conducted a communication requirements
analysis to determine the total number of possible communication channels in the project.
While conducting the analysis, you learn that the number of communication channels:

1. Increases in direct proportion to the number of people

2. Decreases in inverse proportion to the number of people

3. Increases in exponential proportion when the number of people increases

4. Depends on the type of project

Question 181: The project manager needs to effectively engage stakeholders throughout
the project life cycle. Analytical techniques can be used to identify the current and desired
engagement levels of each stakeholder. This information is captured in:

1. Stakeholder analysis matrix

2. Analytical forecasts

3. Stakeholders Engagement Assessment Matrix

4. Stakeholder register
Question 182: Your project is very critical for the company and must be completed within
six months. The project charter has been signed, but the scope statement is not yet
prepared. The management asks you to go ahead with the project without the scope
statement being approved. What should you do?

1. Refuse to work on the project, because the management is not following standard project
management practices.

2. To save time, you should start the project with inputs from the project charter.
3. Meet the management and explain the problems you may face if you start a project
without a scope statement.

4. Escalate the issue to the project sponsor and issue a risk memo.
Question 183: From a project management perspective, which of the following BEST
describes activity attributes?

1. They are the quality criteria that are to be met mandatorily.

2. They provide a basis for judging a project`s success or failure.

3. They provide a basis for determining how effectively performing organization supports
the project.
4. They provide primary data source for use in estimating team and physical resources
required for each activity on the activity list.
Question 184: In your project, you want to define variance thresholds at the designated
time points over the duration of a project. So, you should use:

1. Units of measure

2. Precision level

3. Organizational procedure links

4. Control thresholds
Question 185: Which of the following processes, sometimes, is called 'quality assurance'?

1. Manage Quality

2. Plan Quality Management

3. Control Quality

4. None of the above

Question 186: In your project, you are entering into a fixed-price contract in the form of a
purchase order. The contract is for a specified item to be delivered by a specific date for a
specified price. In the contract, the profit is:

1. Determined by the buyer during contract sign-off

2. Determined by the seller during contract sign-off

3. Provided by the buyer to the seller at the end of the project if defined performance
criteria are met

4. Not known at the time of the contract sign-off

Question 187: As a project manager, which tool will you use to bring together prequalified
stakeholders and subject matter experts in order to know about their expectations and
attitudes about a proposed product?

1. Facilitated workshops

2. Focus Groups

3. Group creativity techniques

4. Group decision making techniques

Question 188: Which of the following projects described below will you select?

1. Project A with opportunity cost of $100,000 and investment of $1,000,000.

2. Project B with opportunity cost of $200,000 and investment of $500,000.

3. Project C with opportunity cost of $300,000 and investment of $3,500,000.

4. Cannot be determined from the above options.

Question 189: You are the project manager working on a project to develop a new 4-color
erasable pen. The customer, PMstudy.com, is very excited to offer this innovative pen to
participants in their PMP prep boot camp class, as it will allow them to erase mistakes
made when creating their detailed process chart. PM study also wants to use the pen to
help promote their other brand SCRUMstudy.com, so they have asked for their affiliate logo
to appear on the pen.

They also want the product development to be rushed as they are running low on current
inventory and want their next order to consist of the new pen. Since the product is a new
concept and the customer is an important one, you decide to create a prototype of the pen
during the design phase.

After reviewing the prototype, PM study's CEO advises that he is not happy with the design
and the size of the logos. The Quality and Marketing Directors and other PM study
stakeholders are happy with the prototype and feel that all their requirements were met.
What could be the most likely cause of this situation?

1. The CEO changed his requirements after seeing the prototype.

2. The team rushed through collecting the requirements and developing the prototype,
since the timeline was tight, so they missed some key requirements.

3. The CEO was not identified as a key project stakeholder.

4. All of the requirements approved for the prototype were not implemented.
Question 190: As a project manager, you realize the importance of team development for
resource management. Which of the following is NOT a tool/technique for the Acquire
Resources process?

1. Interpersonal and team skills

2. Pre-assignment

3. Virtual teams

4. Expert judgment
Question 191: What are the basic types of phase-to-phase relationships?

1. Sequential and concurrent

2. Iterative and sequential

3. Sequential and overlapping

4. Overlapping and iterative

Question 192: In your project, you are subdividing major project deliverables into smaller,
more manageable components. This will be done as part of:

1. Create WBS

2. Scope verification

3. Work authorization system

4. Product analysis
Question 193: Engagement levels of stakeholders can be classified as follows:

1. Unaware, Resistant, Balanced, Supportive, and Aware

2. Unaware, Against, Neutral, Supportive, and Aware

3. Unaware, Resistant, Neutral, Aware, and Leading

4. Unaware, Resistant, Neutral, Supportive, and Leading

Question 194: In your project, you would like to use the 'Conduct Procurements' process
to obtain quotations for subcontracting your work. Which of the following tools can be
used to facilitate this process?

A. Bidder conference

B. Procurement documentation

C. Advertising

D. Negotiation

1. B, C and D

2. A, C and D

3. C and D

4. Only A
Question 195: You are a Project Manager in charge of building a school that will open next
month in the middle of a state-funded housing project. In your project, you are reviewing
and maintaining realistic start and finish dates for project activities. This should be done as
part of:

1. Sequence Activities

2. Estimate Activity Durations

3. Develop Schedule

4. Define Activities
Question 196: The buyer has clearly specified that only companies that have revenues
greater than $300 million and profitability of more than $30 million over the past 3 years
can bid for the contract. This can also be referred to as:

1. Procurement negotiation

2. Source selection criteria

3. Independent estimate

4. Make or buy analysis

Question 197: According to Maslow`s hierarchy of needs, economic security is a:

1. Physiological need

2. Safety need

3. Social need

4. Self-esteem need
Question 198: You are the project manager for the construction of a shopping mall. As the
location is prone to earthquakes, you plan to construct a building that is resistant to
earthquakes. This is an example of:

1. Risk mitigation

2. Risk transfer

3. Risk avoidance

4. Risk acceptance
Question 199: Which of the following statements about stakeholders is INCORRECT?

1. Stakeholders may exert influence over the project.

2. Stakeholders` responsibilities remain stable throughout the project life cycle.

3. Some stakeholders benefit from a successful project.

4. Identifying stakeholders can be difficult.

Question 200: Which of the projects described below will you select?

1. Project A with sunk cost of $4,000 and an opportunity cost of $3,000

2. Project B with sunk cost of $5,000 and an opportunity cost of $3,000

3. Project C with sunk cost of $5,000

4. Cannot be determined from the above options.