Communications

Management
Q 1. Extensive use of___________ communication is most likely to
aid in solving complex problems.

A. Verbal
B. Written
C. Formal
D. Nonverbal

Answer
 Communications
Management

Q 1. Answer B

Explanation:
Written communication allows your words to be documented, and
they will go to everyone in the same form. When there are complex
problems, you want everyone to receive the same thing.

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 Communications
Management
Q 2. The work breakdown structure can be an effective aid for
communication in which situation(s)?

A. Internal within the project team

B. Internal within the organization
C. External with the customer
D. Internal and external to the project

Answer
 Communications
Management

Q 2. Answer D

Explanation:
The work breakdown structure allows communication vertically
and horizontally within the organization as well as outside the
project.

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 Communications
Management
Q 3. The MOST likely result of communication blockers is that:

A. The project is delayed.

B. Trust level is enhanced
C. Conflict occurs.
D. Senior management is displeased

Answer
 Communications
Management

Q 3. Answer C

Explanation:
The major result of communication blockers and
miscommunication as a whole is conflict.

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 Communications
Management
Q 4. Formal written correspondence with the customer is required
when:

A. Defects are detected.

B. The customer requests additional work not covered
under contract.
C. The project has a schedule slippage that includes
changes to the critical path.
D. The project has cost overruns.

Answer
 Communications
Management

Q 4. Answer B

Explanation:
Everything that we do is more formal in a procurement
environment than in other project activities. Because choice B
deals with contracts, it is the best answer.

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 Communications
Management
Q 5. A project manager has a problem with a team member's
performance. What is BEST form of communication for
addressing this problem?

A. Formal written communication

B. Formal verbal communication
C. Informal written communication
D. Informal verbal communication

Answer
 Communications
Management

Q 5. Answer D

Explanation:
The best choice is D. If informal verbal communication does not
solve the problem, choice A is the next best choice. This does not
mean that you do not keep records of the problem, but this
question is asking about communication between two parties.

Next: Risk
Management
 Risk Management
Q 1. All of the following are factors in the assessment of project risk
EXCEPT:

A. Risk event.
B. Risk probability.
C. Amount at stake.
D. Insurance premiums,

Answer
 Risk Management

Q 1. Answer D

Explanation:
Insurance premiums come into play when you determine which
risk response strategy you will use.

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 Risk Management
Q 2. If a project has a 60 percent chance of a US $100,000 profit
and a 40 percent chance of a US $100,000 loss, the expected
monetary value for the project is:

A. $100,000 profit.
B. $60.000 loss.
C. $20,000 profit.
D. $40,000 loss.

Answer
 Risk Management

Q 2. Answer C

Explanation:
Expected monetary value (EMV) is computed by EMV =
Probability x Impact. We need to compute both positive and
negative values and then add them.
0.6 x $100,000 = $60,000 0.4 x ($100,000) = ($40.000)
Expected Monetary Value = $60,000 - $40,000 = $20,000 profit

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 Risk Management
Q 3. Assuming that the ends of a range of estimates are +/- 3
sigma from the mean, which of the following range estimates
involves the LEAST risk?

A. 30 days. plus or minus 5 days

B. 22 - 30 days
C. Optimistic = 26 days, most likely = 30 days, pessimistic
= 33 days
D. Mean of 28 days

Answer
 Risk Management

Q 3. Answer C

Explanation:
This one drove you crazy didn't it? Reread the question! When you
look at the ranges of each choice, you will see that choice A is ten
days, choice B is eight days, and choice C is seven days. The
range of estimates with the smallest range is the least risky.
Therefore, the answer is C. The words +/- 3 sigma are extraneous.
Practice reading questions that are wordy and have extraneous
data.

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 Risk Management
Q 4. Which of the following risk events is MOST likely to interfere
with attaining a projects schedule objective?

A. Delays in obtaining required approvals

B. Substantial increases in the cost of purchased materials
C. Contract disputes that generate claims for increased
payments
D. Slippage of the planned post- implementation review
meeting

Answer
 Risk Management

Q 4. Answer A

Explanation:
Cost increases (choice B) and contract
necessarily interfere with schedule.
implementation" in choice D.lt will not
project schedule. Choice A is the only
delay.
disputes (choice C) will not
Notice the words 'post-
definitely interfere with the
one that deals with a lime

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 Risk Management
Q 5. If a risk has a 20 percent chance of happening in a given
month, and the project is expected to last five months, what is
the probability that this risk event will occur during the fourth
month of the project?

A. Less than 1 percent

B. 20 percent
C. 60 percent
D. 80 percent

Answer
 Risk Management

Q 5. Answer B

Explanation:
Don't feel too silly if you got this wrong. Many people miss this one.
No calculation is needed. If there is a 20 percent chance in anyone
month, the chance in the fourth month must therefore be 20
percent.

Next: Procurement
Management
 Procurement
Management
Q 1. Once signed, a contract is legally binding unless:

A. One party is unable to perform

B. One party is unable to finance its part of the work.
C. It is in violation of applicable law.
D. It is declared null and void by either party's legal
counsel.

Answer
 Procurement
Management

Q 1. Answer C

Explanation:
Once Signed. a contract is binding. Generally, the inability to
perform, get financing, or one parity's belief that the contract is null
and void does not change the fact that the contract is binding. If,
however, both sides agree to terminate the contract, the contract
can move into closure. Once closure is completed, the project is
considered completed.

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 Procurement
Management
Q 2. With a clear contract statement of work, a seller completes
work as specified. but the buyer is not pleased with the results,
The contract is considered to be:

A. Null and void.

B. Incomplete.
C. Complete.
D. Waived.

Answer
 Procurement
Management

Q 2. Answer C

Explanation:
If the seller completes the work specified ill the procurement
statement of work, the contract is considered complete. That does
not mean the same thing as contract closed. The Close
Procurements process must still occur. However, in this situation,
the contract work is completed. Tricky!

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 Procurement
Management
Q 3. All of the fan owing statements concerning procurement
documents are incorrect EXCEPT:

A. Well-designed procurement documents can simplify

comparison of responses.
B. Procurement documents must be rigorous with no
flexibility to allow consideration of seller suggestions,
C. In general, bid documents should not include evaluation
criteria.
D. Well-designed procurement documents do not include a
procurement statement of work.

Answer
 Procurement
Management
Q 3. Answer A

Explanation:
Often the seller is required to inform the buyer of anything that is
missing or unclear in the procurement documents (choice B). It is in
the buyer's best interest to discover missing items, since it will save the
buyer money and trouble to correct the problem early. Procurement
documents must contain terms and conditions and evaluation criteria
(choice C) as well as all the work that is to be done, including the
procurement statement of work (choice D). This is 50 the seller can
price the project and know what is most important to the buyer. Choice
A is an important point for the real world and is the best answer.

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 Procurement
Management
Q 4. A project manager for the seller is told by her management
that the project should do whatever possible to be- awarded
incentive money. The primary objective of incentive clauses in
a contract is to:

A. Reduce costs for the buyer.

B. Help the seller control costs.
C. Synchronize objectives.
D. Reduce risk for the seller by shifting risk to the buyer.

Answer
 Procurement
Management

Q 4. Answer C

Explanation:
Incentives are meant to bring the objectives of the seller in line with
those of the buyer. That way both are progressing toward the same
objective.

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 Procurement
Management
Q 5. All the following statements about change control are incorrect
EXCEPT:

A. A fixed price contract will minimize the need for change

control.
B. Changes seldom provide real benefits to the project.
C. Contracts should include procedures to accommodate
changes.
D. More detailed specifications eliminate the causes of
changes.

Answer
 Procurement
Management

Q 5. Answer C

Explanation:
Since there can be changes in any form of contract, choice A is not
the best answer. There are always good ideas (changes) that can
add benefit 10 the project, so choice B cannot be the best answer.
In choice D, the word "eliminate" implies that changes will not
occur. As that is not true, this cannot be the best answer.

Next: Professional and Social

Responsibility
 Professional and Social
Responsibility
Q 1. A project manager is being considered for a particular project that will deal
exclusively with global virtual teams. He only has experience with local
teams. What should he do when discussing the opportunity with the sponsor?

A. Since he has led projects and teams, it does not make any difference that
these are all global virtual teams, so he does not need to bring it up.
B. He should avoid any conversation regarding the types of teams involved so
the sponsor does not know he lacks experience ill this area.
C. The project manager should point out to the sponsor that he has not had
experience with global virtual teams, but discuss why he thinks he is a good
fit for the project anyway.
D. The project manager should point out to the sponsor that he has not had
experience with global virtual teams and therefore must decline the
assignment

Answer
 Professional and Social
Responsibility

Q 1. Answer C

Explanation:
Choice A is incorrect because there are many issues that will be
different in this project than those the project manager has
experience with. Choice B is unethical and constitutes lying about
his qualifications. Choice D is not right because the project
manager may have so many skills that would benefit the project
that this might not be a major problem. We must make sure
sponsors know of any gaps in our qualifications when taking on
assignments.

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 Professional and Social Responsibility
Q 2. A project manager gathered data to perform earned value calculations on his
project He used the results to report to management that the project is under
budget and on schedule. After reporting this information, he discovered that
the base figures he used in the calculations were incorrect, as they came
from an old copy of the project file which had not been updated. What should
he do now?

A. He should contact management to make them aware of the error, give

the correct information, and explain how he made the mistake.
B. He should contact management and tell them to expect some changes in
the next reporting period, and that things are starting to look gloomy.
C. He should we the correct figures to calculate the information when it is
time for the next report and ignore the fact the he reported incorrect
information.
D. He should tell management that the data he received from team
members was incorrect and thus the report was not accurate.

Answer
 Professional and Social
Responsibility

Q 2. Answer A

Explanation:
Choice B is not the truth of the matter. Although things may be
gloomy, this is not a new development, since the report was based
on old data. Choice C is not right since he is not admitting his
mistake, the ethical thing to do, and choice D is blaming someone
else for his own error. Choice A is correct since the ethical thing to
do is to acknowledge and take responsibility for the error.

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 Professional and Social Responsibility
Q 3. A project manager is working with a vendor on a project when she
learns that the vendor has bribed a subcontractor to work on this
project instead of fulfilling previous commitments to other projects.
What should the she do?

A. She should report the offense to management and the project

managers of the affected projects.
B. She should not do anything because this is the vendor's problem.
The project manager herself didn't do anything wrong.
C. She should report this to other subcontractors so they know they
could get more money from the vendor.
D. She should resign from the project so as to remove herself from
this type of activity. but keep it to herself rather than cause
problems.

Answer
 Professional and Social
Responsibility

Q 3. Answer A

Explanation:
Choices B and C do not inform management and the other project
managers affected, so ale not the best way to deal with this. No
reporting this knowledge (choice D) to the appropriate people is
unethical. Choice A is correct because it is the responsibility of the
project manager to report unethical behavior to management and
those affected.

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 Professional and Social Responsibility

Q 4. You are in the middle of a new product development for your publicly
traded company when you discover that the previous project
manager made a US $3,000,000 payment that was not approved in
accordance with your company policies. Luckily, the project cost
performance index (CPI) is 1.2. What should you do?

A. Contact your manager.

B. Put the payment in an escrow account.
C. Bury the cost in the largest cost center available.
D. Ignore the payment.

Answer
 Professional and Social
Responsibility

Q 4. Answer A

Explanation:
Project managers must deal with potentially unethical situations
like the situation described. Choices Band C hide it Choice D
ignores it. Only choice A deals with it.

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 Professional and Social Responsibility

Q 5. A major negotiation with a potential subcontractor is scheduled for

tomorrow when you discover there is a good chance the project will
be cancelled. What should you do?

A. Do not spend too much time preparing (or the negotiations.

B. Cut the negotiations short.
C. Only negotiate major items.
D. Postpone the negotiations.

Answer
 Professional and Social
Responsibility

Q 5. Answer D

Explanation:
Choice D is more ethical and demonstrates good faith. Why spend
time in negotiations?

Thank you !