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PMP Exam Set 3 - Questions

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1. Mandy works for a consulting company that regularly creates project teams for any new
assignments and once the assignment is over, the team is dissolved. What kind of
Organization is Mandy working for?
a. Matrix
b. Projectized
c. Functional
d. Balanced Matrix
2. What is the key role of the Project Sponsor on a Project?
a. Sharing lessons learnt from previous project
b. Help identifying some key project activities
c. Help preventing unnecessary changes to project objectives
d. Help identifying key project risks
3. As a Project Manager, you present your cost estimate to the Project Sponsor and he asks to
cut cost by 10%. What would you do?
a. Replace originally planned resources with new resources at lower rates
b. Cut some of the project activities and inform sponsor about the same
c. Strongly say No to Sponsor and walk out from the Project
d. Ask all team members to reduce cost of their activities by 10%
4. Which of the following is NOT the advantage of obtaining approval for the project charter
from the sponsor and customer?
a. Formalize the authority assigned to the project manager
b. Gain commitment and acceptance for the project
c. Declares the project manager
d. Preparation of the project plan is done during this period
5. In a multi-phased project, when should the Initiating processes be invoked?
a. At the start of each phase
b. In the middle of each phase
c. At the end of each phase
d. Only during the first phase
6. Of the following, which is not an input to the 'Develop Project Charter'?
a. Business case
b. Project statement of work
c. Contract
d. Expert Judgment
7. Of the following, which is the tool and technique to the process 'Identify Stakeholders?
a. Expert Judgment
b. Procurement documents
c. Stakeholder register
d. Stakeholder management strategy
8. Which of the following is NOT true about Overlapping phases?
a. A phase starts prior to completion of the previous one

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b. Overlapping phases may increase risk and result in rework if subsequent phase
progresses before accurate information is available from the previous phase.
c. Can be applied as an example of schedule compression technique called fast tracking
d. Overlapping phases always reduce the risk as phases start prior to completion of
previous one
9. All projects are mapped to life cycle structure Starting, Organizing, Executing and
Monitoring and Closing. Which of the following characteristic of a generic lifecycle structure
is NOT true?
a. Cost and Staffing levels are low at the start, peak as the work is carried out, and drop
rapidly as the project draws to a close.
b. Stakeholder influences, risk and uncertainty are greatest at the start of the project.
c. Stakeholder influences, risk and uncertainty are lowest at the start of the project,
gradually increase and become steady towards the end.
d. Ability to influence the final characteristics of the projects product is highest at the start
of the project and decreases as the project progresses towards completion.
10. A project can involve a single person, a single organizational unit, or multiple organizational
units. A project cannot create,
a. A product that can either be a component of another item or an end item in itself
b. A capability to perform a service
c. A result such as an outcome or document
d. A result or an outcome and its long term maintenance
11. Managing a project generally includes identifying requirements, addressing the various
concerns and expectations of the stakeholders and balancing the competing project
constraints. Which of the following BEST represents the project constraints ,
a. Scope, Time, Cost
b. Scope, Quality, Cost
c. Scope, Quality, Schedule, Budget, Resources, Risk
d. Scope, Quality, Schedule
12. In terms of Scope, Projects have defined objectives. Programs have a larger scope and
provide more significant benefits. Portfolios have a business scope that changes with the
strategic goals of the organization.
In terms of Success, which is NOT true about the Projects, Programs and Portfolio,
a. In Projects, success is measured by product and project quality, timeliness, budget
compliance, and degree of customer satisfaction
b. In terms of Programs, success is measured by the degree to which the program satisfies
the needs and benefits for which it is undertaken
c. In terms of Portfolio, success is measure in terms of aggregate performance of portfolio
d. In terms of Programs, success is measured by the quality, timeliness, budget compliance,
and degree of customer satisfaction of the projects under it
13. Lincoln is working for an organizational body that is assigned various responsibilities related
to the centralized and coordinated management of those projects under its domain. The
primary function of the organizational body is to support project managers in a variety of
ways which may include,
managing shared resources across all the projects administered under them,

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identifying and developing project management methodology

Coaching, mentoring, training and oversight
Coordinating communication across projects

Which organizational body is this?


Project Management Body

Project Management Office (PMO)
Project Management Operation (PMO)
Steering committee

14. Projects are a temporary endeavour. Operations are an organizational function performing
the ongoing activities that produce the same product or provide a repetitive service.
Projects can intersect with operations at various points during the product lifecycle, except,
a. At each closeout phase
b. Execution of the operations
c. Improvement of the operations
d. Developing a new product , upgrading a product or expanding outputs
15. Large projects may be divided into smaller, more manageable, components
termed, ____________________.
a. checklists
b. decomposition
c. scope breakdown structures
d. subprojects
16. Which of the following statements is most true?
a. It is important for PMPs to differentiate between projects and programs. A program is
an on-going operation and should be managed by a program manager, whereas a
project is temporary and should be managed by a project manager.
b. In the PMP lexicon, a program may be defined as a group of related projects, managed
in a coordinated way.
c. Portfolio management is a generally accepted methodology used in the financial
accounting and investment professions and is typically led by Certified Financial Planners
or Certified Public Accountants, not PMPs.
d. PMPs may consider employing constrained optimization methodologies to determine
what projects would be better classified as programs.
17. You have accepted a consulting assignment with a new organization, an organization with
which you have no prior experience. You learn that you must adhere to the procedures and
protocols established by the organizations PMO. PMO is an acronym for each of the
following except, _______________.
a. Project Management by Objectives
b. Project Management Office
c. Program Management Office
d. Project Office
18. Which of the following statements is most true?
a. The project charter identifies the names of project management team members.
b. The project charter tracks a projects history.

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c. The project charter names and authorizes the project manager.

d. The project charter describes the details of what needs to be done to satisfy quality
improvement objectives.
19. Which of the following is most true?
a. The project charter is developed during closing.
b. The project charter is developed during initiation.
c. The project charter is developed during execution.
d. The project charter is developed during planning.
20. You can generally say each of the following is true except:
a. The project charter identifies major task interdependencies.
b. The project charter includes the product description.
c. The project charter defines the business need(s) that the project was undertaken to
d. The project charter is issued by a manager external to the project.
21. You and your project team have been assigned to deliver a new, improved version of a
replacement auto part that has been a core product in your company for the past two years.
A competitor has already introduced its new, improved version and you have been told that
you and your team must deliver within 90 days. This 90-day schedule is rigid and nonnegotiable. The 90-day schedule could be an example of what?
a. A mandatory dependency
b. A business need
c. A constraint
d. An assumption
22. The coordinated undertaking of interrelated activities directed toward a specific goal that
has a finite period of performance is a :
a. Project charter
b. Project
c. Set of project objectives
d. Program
23. A project manager works in a company favouring the weakest authority for the project
manager the type of organization that holds the project manager to be the weakest is:
a. Projectized organization
b. Strong matrix organization
c. Weak matrix organization
d. Balanced matrix organization

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1. Whom does the Project Team report to in a Projectized Organization?
a. Does not report to any one
b. Project Manager
c. Functional Manager
d. CEO
2. In a matrix organization, a Project Manager can expect the communication to be?
a. Complex
b. Difficult to Understand
c. Simple
d. Open and Accurate
3. During a regular project meeting, one of the team members suggests a nice feature that
customer may like. But the Project Manager says 'No' to this nice feature saying that the
project should concentrate only on what is required for the project to be completed and
nothing else. This is an example of :
a. Scope Management
b. Time Management
c. Quality Management
d. Project Management Plan
4. As a Project Manager, which of the following document can you use to clearly communicate
what work is included in the Work Packages?
a. Requirements Document
b. Scope Statement
c. Project Management Plan
d. WBS dictionary
5. A Project Manager is calculating the weighted average of activity duration estimate to do the
Schedule network analysis. Which Schedule Network Analysis technique is he using?
a. Critical Path Method
b. Critical Chain Method
d. what if Scenario Analysis
6. A Project Manager has received activity duration estimates from his team. Which of the
following does he need in order to complete schedule development?
a. Change Request
b. Reserves
c. List of Preventive Actions
d. Change Control Procedure
7. Your Program Manager asks you to reduce the Project Schedule. You look at the network
diagram and start identifying sequence of activities which can possibly happen in parallel.
Which technique are you using?
a. Fast Tracking
b. Crashing
c. Flow Charting
d. WBS

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8. Which of the following Project Management Tool is best suited to calculate the longest time
that a project will take to complete?
a. WBS
b. Earned Value Technique
c. Network Diagram
d. Flow Chart
9. Which of the following is not a technique for Determining Project Budget?
a. Cost Aggregation
b. Reserve Analysis
c. Expert Judgment
d. Analogous Estimating
10. Which of the following is not an impact of Poor Quality?
a. Increased Cost
b. Rework
c. Increased Risk
d. High Customer Satisfaction
11. You have been assigned as the Project Manager of an ongoing Project involving 50
Employees of your company and 10 Sub contractors. You want to know who is assigned to
do what. Where should you look for this information?
a. Responsibility Assignment Matrix
b. Project Organization Chart
c. Pareto Chart
d. Resource Histogram
12. Your Organization wants to build a new web based HR Management System. You are the
Project Manager from the IT team and the HR Manager of the Organization is expected to
assign two of his team members on this Project to work as functional experts. However, the
HR manager assigns team members, who do not have a good reputation about their
Knowledge. As a Project Manager, what should you do?
a. Escalate the issue to the IT Head
b. Schedule a meeting with the HR Manager and ask why he assigned those member to this
project and share your concern regarding their competence
c. Try to find out who are the good HR team members and request them to be a part of
your Project
d. Meet HR Manager's Boss and Explain your concerns to him/her
13. Which of the following documents has information regarding how people should be
informed about the Project progress?
a. Schedule Management Plan
b. Cost Management Plan
c. Communication Management Plan
d. Risk Management Plan
14. A Project has 10 team members spread across 4 different countries. How many channels of
communication exist?
a. 10

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b. 40
c. 45
d. 20
15. You have been assigned as the Project Manager of a new e-Business Project. There appears
to be many risks in the project but nobody has evaluated them to assess the range of
possible outcomes. According to you, what was not done?
a. Risk Identification
b. Risk Response Planning
c. Risk Management Planning
d. Risk Register not updated
16. Which of the following is an Output of Risk Response Planning?
a. Risk Register
b. Prioritized List of Risk
c. Risk Probability and Impact Matrix
d. Residual Risks
17. Tom is the Project Manager of a software project whose client is based in Brazil. The team is
in the planning stage performing the processes of risk management. Tom has come to you
for assistance of handling the response of identified and prioritized negative risks. Which of
the following is not a strategy of handling negative Risk?
a. Avoid
b. Transfer
c. Mitigate
d. Enhance
18. Which of the following is a key characteristic of Delphi Technique?
a. Expert Opinion
b. Using Historical data to predict
c. Using Analogous approach to solve problems
d. Using Parametric approach to solve problems
19. As a Project Manager, you have been asked to assist the contract manager in drafting the
contract of a large project with limited scope clarity. What type of contract would you
suggest so that your organization does not make any financial losses?
a. Time and Material
b. Firm Fixed Fee
c. Cost Plus Fixed Fee
d. Cost plus percentage of Cost
20. Which of the following is not a Technique to Plan Procurements?
a. Make or buy Analysis
b. Expert Judgment
c. Contract Types
d. Bidder Conference
21. You are the project manager of a new model of the car to be launched by your company.
The car has to hit market before festive season, but you have got information that the
workers are supposed to go on strike during the same time. You try to come with a strategy
to get the new model of the car launched inspite of worker's strike? This is an example of?

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Risk Mitigation
Risk Acceptance
Risk Transfer
Risk Avoidance

22. The scope baseline consists of:

a. The Scope Management Plan, the Project Scope Statement, and the WBS
b. The Scope Management Plan, Requirements Documents, and the WBS
c. The Scope Management Plan, the WBS, and the WBS Dictionary
d. The Project Scope Statement, the WBS, and the WBS Dictionary
23. You are managing a design project. You find that bringing all of your team members into a
single room to work increases their communication, and helps build a sense of community.
This is referred to as a:
a. War room
b. Virtual team
c. Socially active team
d. Common area
24. You and your project team are into week four of a dedicated six week planning session for a
major business improvement project within your organization. As more information has
become available during planning, you and your team have been able to further refine the
WBS every few days. Your WBS is much more detailed and confident now, compared to its
initial version in week one. This may be an example of what?
a. Team development
b. Learning curve
c. Progressive elaboration
d. Expert judgment
25. A responsibility assignment matrix _____________________________.
a. should be considered for use only on very large, complex projects
b. shows assignments and levels of authority, typically as a function of WBS elements. A
RAM does not indicate time.
c. shows when people will be brought onto the project and when they will leave
d. may be used as an alternate way to illustrate the project organization, showing
reporting relationships, typically down to the core team level.
26. Ben is the project manager of an Infrastructure development project, which involves 10
software engineers, 3 technical leads, 3 quality testers and 2 technical architects. All
including Ben are scheduled for a status review meeting on the coming Friday for an hour.
You have to assist Ben in calculating the number of communication channels that will exist
during the meeting?
a. 171
b. 153
c. 306
d. 342

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27. Of the following channels, which is the best method for communication?

All of the above

28. The contractor will be most careful about cost estimation and budgeting under which type
of contract,

Cost Reimbursable contract

Firm Fixed Price
Time Reimbursable contract
Firm Price

29. As a project manager, you need to expedite the project schedule, which is behind schedule.
As project cost and schedule project deadlines are constraints, the project manager will take
the help of one of the following,
a. Fast track the project activities
b. Crash the activities by adding more resources
c. Insert a lag among the activities
d. Evaluate the Most Likely value for the activities
30. You are the Project Manager in a construction industry. Looking at the trend in the natural
disasters that have occurred in India in the past 5 years, your company is adamant to add
buy an insurance against earthquakes, as the other disasters do not seem prevalent in the
area where the work is to be done. Which of the risk response strategies does this belong
a. Mitigation
b. Contingency
c. Transference
d. Acceptance
31. You have been chartered to carry out a project to develop the Human Resource
Management system and have been assigned a budget of $3 Million that is not flexible. This
is an example of,
a. Assumption
b. Expert Judgment
c. Constraint
d. Estimation
32. WBS is a deliverable-oriented hierarchical decomposition of the work to be executed by the
project team to accomplish the project objectives and create the required deliverables.
Which of the following is not an example of hierarchical structures,
a. Organizational Breakdown Structure (OBS)
b. Bill of Materials (BOM)
c. Resource Histogram
d. Risk Breakdown Structures (RBS)

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33. Steffi has recently joined the Minimax project, increasing the count of project team
members to 10. How many new communication channels have been introduced with Steffi
joining the Project Team?
a. 36
b. 45
c. 9
d. 1
34. An action has to be taken for a risk event that has occurred during the project execution. It
was not identified during the Risk Identification process. Which is the best method of
resolving the event that has occurred, :
a. Workaround
b. Fallback Plan
c. Risk Response Plan
d. Transfer the risk to third party
35. You are a project manager for the organization that completes projects for other
organizations. For the past few months, you have been working on a project for creating a
remote control device for video cameras. Another company has approached you for
developing a similar project for their range of video cameras and is a competitor to your
client. What is the best action you should take?
a. This is the kind of work your organization performs, hence take the new project.
b. Refuse to take the new project and do not disclose the reason to the company
c. Take the project if the new customer is ready to pay your organization a higher price
d. Accept the new project as both the companies have nondisclosure agreements signed
with your organization and there is no non-compete clause in the contracts with both the
36. The team has provided the project manager with activity duration estimates. If the project
manager is about to start schedule development, which of the following is the MOST
important item the project manager needs to adequately develop a schedule?
a. Risk Register
b. Corrective action
c. Schedule change control system
d. Change request
37. You are the project manager for the LLL Project. Steven, a project team member, is confused
about network diagrams. Specifically, he wants to know the significance of the critical path
in a network diagram. What would you tell him?
a. The critical path is the network that hosts the activities most critical to the project
b. The critical path is the longest path with the shortest time to complete the project.
c. The critical path is always one path that cannot be delayed or the entire project will be
d. The critical path is the path from start to completion with no deviation from the project

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38. Joe, a project manager for his company, is explaining the difference between a Gantt chart
and a Milestone chart. Which of the following is the most accurate description of a Gantt
a. A Gantt chart depicts what was planned against what actually occurred.
b. A Gantt chart depicts the work in the project against the work that has been completed.
c. A Gantt chart depicts the work in the project against each resources calendar.
d. A Gantt chart depicts the work in the project against a calendar.
39. A planning process helps the project manager define roles, responsibilities and reporting
relationships. Which of the following planning process(es) is concerned with reporting
a. Scope planning
b. Resource planning
c. Human Resource planning
d. Activity definition
40. You are the project manager for the TLF project. As part of risk identification, you are tasked
with using a technique called SWOT. Which of the following describes SWOT?
a. Analysis of: strengths, weaknessess, options, and timing
b. An elite project team that comes in and fixes project risks and threats
c. Analysis of: strengths, weaknessess, opportunities, and threats
d. Technique for rating risks on a scale from 1 to 100
41. You are currently planning your project activities. Some members in your organization are
against taking up the project because they state that it's better to buy the same product
from an outside source. Others within the organization feel that building the product inhouse will provide exposure to new technologies. What tool should the project manager use
to choose between the options available?
a. Make-or-Buy Analysis
b. Fishbone model
c. Ishikawa diagram
d. ROI Analysis
42. You are the project manager for the FRS Project. For estimating costs in your project, you
use parametric modelling. Which one of the following is an example of parametric
a. Estimates built from bottom-up based on the WBS
b. Historical information from a similar project
c. $400 per ton
d. Estimates based on top-down budgeting

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1. You have recently completed the procurement document package after the successful execution
of the Bidders conference. You and your team are now involved in the selection of seller using
the weighting system based mainly on Price, Quality, Delivery Time and Sellers business size.
From the following data, which seller will be finally selected?
[Sellers names are fictitious and resemblance to any brand name is purely coincidental]


Price (30%)


Delivery Time

Business Size (10%)







2. Alfred is the Project Manager for a web based application, having a team of 10 people. Alfred had
asked the team to work over the weekend so as achieve the final milestone, which has been
previously agreed with the customer. The team has worked very hard over the weekend and
Alfred has written an email to his team members thanking them for their efforts. This is an
example of,
a. Formal written
b. Formal verbal
c. Informal written
d. Informal verbal
3. You just started a new Project as a Project manager, when a couple of stakeholders, with whom
you have worked in the past, come to you raising concerns about the utility of the new Project
Management Package being used and the way project changes would be logged into the new
Software. As a Project Manager what should you do?
a. Supply with Training Material on new Project Management Software
b. Inform the Project Management Office about stakeholder's concern
c. Since they are friends, conduct informal training session
d. Assure stakeholders that he will keep them engaged in the Project and new Software will not
way impact their functioning

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4. With respect to change, what is the most important activity for a project manager to focus on?
a. Do the change
b. Track & Record the change
c. Prevent unnecessary change
d. Inform Project Sponsor of the change
5. What is the meaning of term 360 degree feedback in appraisals?
a. A person is appraised by not only the Project Manager but also by peers, supervisors and
b. A person is appraised based on competency mapping of his skill set
c. A person is appraised based on his performance in Key Process Areas
d. A person is appraised based on Organization policy and procedures
6. Which of the following is NOT a tool and technique used in 'Develop Project Team' process?
a. Training
b. Interpersonal skills
c. Co location
d. Observation and Conversation
7. A new Project Manager takes over a project during execution phase. One of the main issues faced
by the project currently is that the customer complaints of poor visibility of the project. What
should be his first step towards resolving the issue?
a. Have a discussion with the customer to understand why he feels the project lacks visibility
b. Hold a discussion with the team members who have been in this project since beginning to
understand customer specific communication needs
c. Go through the communication management plan to understand customer communication
requirement and whether it is being addressed properly
d. Project manager should first understand the project and go through project management
plan to understand the project properly
8. You are managing a large project which has many stakeholders across various departments in the
organization. During the planning stage, you created a communication management plan based
on the project organization structure and external stakeholder requirements in order to manage
the flow of project information. Now while executing the project, one of the stakeholders
contacts you and informs you that his expectations are not accounted for in the project. What
should be your BEST response to the situation?
a. Understand his expectations and update project documents accordingly starting with
stakeholder register
b. Since the stakeholder analysis is already completed and all the other stakeholders have been
present and addressed work towards fulfilling their expectations, the same cannot be
repeated for this particular stakeholder
c. Go through the stakeholder analysis with team as there might be more unidentified
stakeholders in the project

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d. Inform this stakeholder that he will be included in all project communications and he can
raise his concerns whenever he feels his requirements are not being addressed
9. You are Project Manager of a software project that has finished the design stage and is moving to
implementation stage. At the end of Design phase you got the document reviewed; tracked and
closed the defect logs. Also as part of Design Stage Review and kick off for Implementation phase,
you checked current SPI and CPI and revisited the risks. What have you forgotten to do?
a. Identify new risks for the next stage and update risk register
b. Take corrective and preventive actions from design review so that defects can be minimized
c. Conduct an impact analysis of the defects found during the design review
d. Communicate project stage review findings to all the stakeholders
10. In which of the following type of contract does the buyer has the MAXIMUM cost risk?
a. Cost Reimbursable
b. Fixed Price
c. Time and Material
d. Cost Plus Fixed Fee
11. As a project manager, you need to distribute information about your project's status. You intend
to distribute the actual project result and the planned status. Which of the following report
should you use?
a. Variance Report
b. Forecasting Report
c. Status Report
d. Trend Report
12. A project team is in the process of obtaining seller responses, selecting a seller and awarding a
contract. For this purpose they are using some predefined selection criteria to evaluate the bids
and select the most appropriate seller. Which process of Project Management is the project
team working on?
a. Plan Procurements
b. Conduct Procurements
c. Administer Procurements
d. Proposal Evaluation
13. A project manager is involved in Procurement Management process in a centralized contracting
environment. He is assigned a full time contract manager who reports to him for the project.
Under this scenario which would usually NOT be the role of project manager?
a. Provide increased expertise in contracting and also guide the team on standardized company
b. Make sure the contract contains all project management requirements
c. Identify risks and incorporate mitigation and allocation of risks into contracts
d. Help tailor the contract to the unique need of the project
14. A project manager is forced to give a contract to a preferred supplier as he has a strict deadline to
meet. What could be the BIGGEST risk in this situation for the project manager?
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a. The seller has not proven that he has required expertise and resources to take this
b. The project manager didnt get chance to evaluate other vendors who could be better
c. The seller may not fulfil the evaluation criteria to bid for the project
d. The seller may not meet acceptance criteria in the contract and project manager might have
to accept what he gets
15. Your company is bidding for a major project from Company X. You have a friend in company X
and he requests your help in evaluating the proposals. What action should you take?
a. Accept the friend's request and work impartially while helping on the proposal evaluation
b. Accept friend's request and take care of your company's interest while helping on the
proposal evaluation
c. Reject friend's request
d. Ask your Manager's opinion
16. A project manager has worked on many challenging projects and managed teams across the
globe in last 20 years of his career. Now, he intends to share his best practices and lessons
learned throughout his professional career. The Project Managers act can be BEST defined as?
a. Enhancing his personal professional skills by evaluating his professional experience and
b. Project Manager is contributing to the project management knowledge base
c. Capturing his professional stint in an autobiography
d. Informing others about project management principles and helping the profession grow
17. Which of the following is an example of Smoothing as part of promoting interaction among
a. Project manager keeps himself aloof and uninvolved from team conflicts and lets the team
handle it themselves
b. Project manager calls the troublemakers and tries to resolve their problems through
c. Project Manager downplays the difference of opinion saying the difference lies only in
d. Project manager takes side of the more experienced resource as he is more valuable to the
18. Team development would be MOST difficult in which form of the Organization structure?
a. Weak Matrix Organization
b. Projectized Organization
c. Tight Matrix
d. Balance Matrix Organization
19. One of the outperforming team member from support group of the project team wants to move
into technical team as he finds that work more challenging. As a project manager you know that
he is a valuable resource and moving him out of support group can affect group performance.

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Hence you decide to give him a hike in salary. However the employee is still unhappy and
dissatisfied. This is an example of which theory?
a. Maslows Theory
b. Herzberg's theory
c. McGregor's theory
d. Expectancy theory
20. A project manager is preparing for the next milestone release when he realizes that he has
missed an important feature in project requirements plan. This feature if implemented would
take at least one person week of effort. What should be his Next step to address this?
a. Discuss the change with Customer and seek his approval
b. Evaluate the impact of change on triple constraint
c. Look for the alternatives to reduce the impact of change
d. Raise a change request to address the change through change control process
21. What does the kaizen theory state?
a. Evaluate project performance on regular basis
b. Reduce the inventory cost to zero by making inputs available just when required
c. Use a process of Plan-Do-Check-Act to improve quality
d. Apply continuous small improvements to reduce costs and ensure consistency
22. Your customer asks for a small change in the project, which was not budgeted in the project. It is
a small effort as compared to the total project and you need the goodwill for a multimillion dollar
on this gas project. What will you do?
a. Implement approved changes according to the change management plan in order to meet
the project requirements
b. Since you need to maintain goodwill, you agree to incorporate the change
c. Speak to the sponsor for his consent
d. Tell the customer to keep it as a secret and not inform the sponsor about this change to be
23. During the project, you and your team discovered that a key project component was stolen. As
this was not planned for the team decided to launch the product without the stolen component.
This is an example of?
a. Work around
b. Risk Transfer
c. Risk Mitigation
d. Acceptance

24. During the project execution, the status report shows that an activity on the critical path is
delayed. As a project manager, what should do?
a. Deliver uncompleted activity
b. Compress the schedule
c. Reduce the scope
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d. Stop the project execution

25. As a project manager, you are assigned to a project that has been decided to be outsourced. The
next step is to organize a formal bidding process and select the vendor for the project. You own
stock in one of the vendor companies who also participated in the bidding process. What is the
BEST course of action for you?
a. Get the vendor company selected for the project
b. Keep the information to yourself
c. Tell your manager and remove yourself from the vendor selection committee
d. Ask other members of the selection committee to select your vendor company
26. Which of the following is NOT a tool and technique for the 'Conduct Procurements' process?
a. Bidders Conference
b. Independent estimates
c. Procurement Negotiation
d. Contract Types

27. The project manager has discovered two team members having a disagreement over the
procurement of the project component. The project manager suggests that the team members
should compromise and the team members are also willing to resolve the conflict. Who should
decide the best course of action/
a. Sponsor
b. Customer
c. Project Manager
d. Team members
28. The primary communication skill the project manager will use in working with the functional
manager is:
a. Problem Solving
b. Negotiation
c. Team Building
d. Public Relations
29. Performance improvements include all but:
a. Improvements in amount of overtime worked
b. Improvements in individual skills
c. Improvements in team behaviour
d. Improvements in team capabilities
30. Herzberg divided motivation factors into two classes : satisfiers and dissatisfiers. Examples of
satisfiers are :
a. Vacation time
b. Work satisfaction, fringe benefit
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c. Plush offices space, performance based salary raise

d. Sense of personal achievement, work satisfaction
31. A project manager is concerned about team building on her project. One of the mandatory things
that she must have in order to have good team building is:
a. Commitment from top level management
b. Co-location of team members
c. Establishment of clear negotiated goals
d. Open discussion of poor individual performance
32. A project manager is managing a project where there will be a number of persons working
together. She wants to enhance the ability of the team to work together and perform as a team.
One of the things that she can do to maximize the ability of the team to do this is:
a. Cohabitation
b. Co-location
c. Staffing plan
d. WBS
33. Tom always delivers his projects on time and within budget. He believes that his success can be
explained by the fact that he makes all of the project decisions himself and then enforces those
decisions with an iron hand. His management style is best described by
a. Force Field Theory
b. Expectation Theory
c. Gregor's Theory X
d. Gregor's Theory Y
34. Outputs of Direct and Manage Project Execution include:
a. Deliverables and performance reports
b. Deliverables and work performance information
c. Deliverables and corrective action
d. Performance reports and corrective actions
35. You are the project manager on a construction project. Midway through your project, you realize
that theres a problem with one of the project components youve been using in a few rooms and
you are going to have to tear down some of the work that's done and rebuild. One of your team
members suggests that the defect isnt bad enough to cause all of that re-work. Since you have
worked on a project where a similar mistake was made and it ended up in re-doing it when
inspectors looked at the house. You convince the team member that its probably better to fix it
now than later. What kind of power are you using to make the decision?
a. Legitimate
b. Expert
c. Referent
d. Reward
36. A project manager is reporting the final status of the closed contract to the stakeholders.
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Which form of communication is appropriate?

a. Informal written
b. Informal verbal
c. Formal written
d. Formal verbal
37. Of the following, which one is not an example of formal communication?
a. Presentations to groups
b. Contractual agreements
c. Ad hoc conversations
d. Presentations to management

38. As a project manager for the Zambi project, you implement formal communication methods to
exchange information with your stakeholders. Of the following, which one is an example of
informal communications?
a. Presentations to groups
b. Memos
c. Briefings
d. Speeches
39. You are the project manager of OneCash project. To make the teamwork more effective you are
setting up some ground rules for your team. Which of the following is not advisable to include in
the list of ground rules specified to conduct project meetings :
a. Conducting daily meeting
b. Allow project meetings to last as long as needed
c. Distribute meeting agendas prior to the meeting start
d. Allow the project team to have their input to the agenda
40. The customers of a project have requested additional feature to be included in the project scope.
The project manager brings to notice that additional risk management needs to be done before
accepting the scope change. Why?
a. Risk management should occur whenever the scope is adjusted, to understand its complete
impact on the triple constraints
b. There should be no impact on risk management because the activities that need to be
performed in the project are still the same.
c. Risk management is happens as per the directions given by the sponsor whenever any
changes happen to the scope of the project
d. The project manager is incorrect; risk management need not to happen when additional
scope has been added to the project.
41. You are the project manager for the Starrise project. During project execution, a project team
member informs you that based on his observations; the project cannot meet the quality
standards set for it. You call for a meeting with the stakeholders' concerned to analyze the
situation. Which process are you currently involved in?
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Quality analysis
Quality control
Quality assurance
Quality planning

42. The Project status meeting that you are anchoring is not going well. Many participants are simply
talking among themselves and not participating. Which of the following rules of communication
are NOT being followed?
a. Relevant stakeholders are not attending the meeting
b. Meeting Agenda has not been decided and shared
c. Stakeholders are mis-behaving
d. You are not the Project Manager
43. You make it a point to set aside ten minutes at the end of each weekly team meeting for open
discussion. In last weeks meeting your team member who is responsible for project risk
management brought up the topic of team performance improvement. A discussion ensued that
resulted in some new goals for the team. The goals were documented and distributed. These new
team performance improvement goals included all of the following,
a. Improve team behaviour; to deal more effectively with conflict.
b. Improve individual skills; to perform activities with greater efficiency.
c. Improve teaming skills; to tap collective creativity in developing better ways to accomplish
project work.
d. Improve individual negotiating skills; to empower team members during salary talks when
they are released at projects end.
44. You assume that team development objectives will be MOST difficult to achieve under which of
the following conditions?
a. When team members are accountable to both you, as project manager, and to their
respective functional managers.
b. When any of the seven sources of conflict fail to be resolved and problems linger.
c. When the project managers leadership power is derived primarily via reward and/or
d. When the project budget is so austere that zero spending on team building activities is
45. You are considering what team development goals to establish, along with what tools to apply to
help achieve those goals. You decide to use a creative reward and recognition system that should
be motivational, fun and fair. While developing the details of your reward/recognition system,
some general guidelines should be observed. Which of the following represents the LEAST
appropriate guideline for you to observe?
a. The link between the reward and project performance goal must be clear and explicit.
b. The required project performance goal must be reasonably achievable.
c. The reward system should factor cultural differences.
d. The reward and/or recognition should be clearly linked to monetary value.
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46. Of the following statements, identify the LEAST TRUE.

a. A buyer/seller contract is a legally binding agreement and cannot be changed.
b. If a contract is well-planned and negotiated, then the need for contract changes should
be minimized.
c. Contract changes that will lead to improved project performance should be facilitated,
but in accordance with the change management provisions of the contract.
e. It is the project managers responsibility to prevent and discourage unnecessary contract

47. During project planning, you and the team created a series of checklists (for later use during
project execution) to track the completion of defined deliverables. When project planning was
completed, 327 deliverables were defined and captured on the checklists. Now, well into project
execution, the checklists are proving to be quite useful. Each week, the checklists are updated to
show which deliverables have been completed, which are partially completed and those that
remain. These checklists are helping you and the team to review and track ____________.
a. quality metrics
b. work results
c. the work breakdown structure
d. the scope management plan
48. Your project team has just received the last of fourteen proposals from prospective suppliers, all
eager to win your contract award. Upon initial review, it appears that significant variation exists in
proposal formats, technical discussions and pricing structures. Of the following, which will be LEAST
HELPFUL for you and the team to fairly compare and evaluate all these proposals?

use a weighting system

use a screening system
have an independent estimate performed for comparison
have an independent background check performed on each bidder

49. Which of the following roles helps support the project and resolves resource conflicts?

Functional management
Senior management
Project Management

50. Which of the following roles controls resources and manages a business unit?

Functional management
Senior management

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Project management

51. A Quality Audit is a structured, independent review to determine whether project activities
comply with organizational and the project policies, processes and procedures. The subsequent
effort of quality assurance will result in the following EXCEPT,

Reduced cost of quality

Increase in customer acceptance of the projects product
Identifying only the shortcomings and not the best practices
Highlights the contributions of each audit in the lessons learned repository of the

52. Which of the following correctly defines the documented direction for executing the project
work to bring expected future performance of the project work in line with the project
management plan?

Corrective Action
Preventive Action
Defect Repair
Corrective Plan

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1. Of the following reports, which one will not be suitable for the top management?

Milestone report
Bar Charts
Gantt Chart
Control chart

2. Judy is the project manager for a construction project and has subcontracted parts of the
project to 3 vendors. On Monday, she is in an important meeting with one of the vendors
discussing change in the scope of work and is scheduled to board the plane to meet the
client for a meeting. Owing to the current meeting, she leaves 25 minutes later than the
time scheduled for reaching the airport. The probability that she will be able to board the
airplane is 30% and if she succeeds in boarding the plane, there will be positive outcome of
$5000 but there will be a negative outcome of $15,000 if she is unable to board the plane.
What is the Expected Monetary Value if Judy is able to board the plane?


3. To reduce the chances of failure of your project, you insist on looking at one of the following
documents that will provide you with instances that lead to success and failure in their
project and how they resolved the issues in their projects successfully,
a. Project Plan
b. Project Schedule
c. Lessons Learned
d. Performance Report
4. What does a CPI value of greater than 1 indicate?
a. Cost underrun of the estimates
b. Cost overrun of estimates
c. Does not affect the project
d. Project is ahead of schedule
5. You are the project manager for a project, which has a budgeted cost of $1200. The work
done is of value $700 and the actual cost spent on the project till date is $1500. What is the
CPI for this project?
a. 0.467
b. 0.583
c. 0.8

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d. 1.25
6. As the project manager, you are nearing completion of your project. You are involved in the
scope verification process of a deliverable with the customer. What is the MOST important
thing you, as the project manager, should ensure?
a. Acceptance
b. Timeliness
c. Accuracy
d. Completeness
7. You have tasked a project team member to list the activities that result in cost of nonconformance to quality in your project. The list he submits is inaccurate because one of the
four, is a cost of conformance. Which of the following did your project team member list
a. Rework
b. Scrap
c. Quality training
d. Warranty costs
8. You are the Project Manager working for an IT implementation project. You are required to
purchase and integrate a software workflow product in an organization. You have signed a
contract with the vendor and work has initiated. Halfway through the project, the customer
decides to add new functionality to the workflow software. This addition of features will
require changes to the signed contract. Who has the authority to change the contract?
a. Project Manager
b. Project Sponsor
c. Contract Administrator
d. Customer
9. Which one of the following is NOT a tool and technique to Administer Contract process?
a. Contract change control system
b. Contract negotiation
c. Payment system
d. Performance rating
10. You are the project manager and need to ensure that the customer formally accepts the
deliverables of each project phase. This process is known as ___________?
a. Earned Value Management
b. Verify Scope
c. Plan Quality
d. Control Quality

11. A project team member has, on his own initiative, added extra vents to an attic to increase
air circulation in the attic. The project plan did not call for these extra vents, but the team

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member decided that they were needed based on the geographical location of the vents.
This is an example of?
a. Cost control
b. Ineffective change control
c. Self-led teams
d. Value added change

12. You are the project manager and are currently in the monitoring process group. You and
your team are trying to identify the relationship between an independent variable and the
dependent variable by plotting their values on a diagram. One of your team members asks
you what is this diagram known as?
a. Control chart
b. Scatter diagram
c. Cause and Effect diagram
d. Statistical Sampling
13. Which of the following tools assist a project manager and his team to show how the various
elements of a system relate?
a. Project Scope statement
b. Flowcharting
c. Trend chart
d. Run Chart
14. All of the following are common causes of variances EXCEPT?
a. Predictable variances
b. Random variances
c. Special variances
d. System variances

15. Fishbone diagrams are also known as what?

a. Cause and Effect diagram
b. Ishikawa diagram
c. Pareto diagram
d. Cause/Effect diagram AND Ishikawa diagram
16. The bus driver for the local train service in Mumbai, India is in the process of driving
the daily train route. Adhering to the required start-up process, the driver follows
the procedures to ensure that he has properly selected and adjusted all the needed
items to start up the bus for his route. Which of the following did he likely use?
a. Process flowchart
b. Checklist
c. Cause and Effect diagram
d. Company policy

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17. You have tasked a project team member to list the activities that result in cost of
non-conformance to quality in your project. The list he submits is inaccurate
because one of the four, is a cost of conformance. Which of the following did your
project team member list incorrectly?
a. Warranty costs
b. Quality training
c. Rework
d. Scrap

18. You are the project manager for the LRF project. You find out that your project is not
going according to plan. You decide to measure standard deviations of various
project parameters, which is a measure of how:
a. Far the measurement is from the mean.
b. Far the estimate is from the average estimate.
c. Correct the sample is.
d. Much time remains in the project.
19. You as a project manager use the change management process for your project. You
know that the need of changes on the project can occur due to:
a. An external event such as a change in government regulation
b. An error or omission in defining the scope of the product
c. Customer fails to specify the requirement in the initial document.
d. All of the above
20. You as a project manager are deciding the tools & techniques that you need to use
on your project. Which process uses Issue Log as one of the tool & technique?
a. Information Distribution
b. Manage Project Team
c. Direct and Manage Project Execution
d. A,B and C
21. A technique used to validate that the project can meet the required performance
and business objectives is:
a. Cost/Benefit Analysis
b. Statistical Regression Analysis
c. Pareto Analysis
d. Decomposition
22. You are ensuring that configuration management is done on your project. The
activities that are included as part of Configuration Management are:
a. Configuration Identification
b. Configuration Status
c. Configuration Verification and Auditing
d. All of the above

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23. At times, you as a project manager have to implement corrective actions on your
project. What's not true about corrective action?
a. Corrective action is a sign of lack of project planning and needs to be avoided
b. Corrective action is anything done to bring expected future project performance
in line with the approved project baseline
c. Corrective actions frequently requires root cause analysis to identify the causes
of the variation
d. Corrective actions are triggered after variance analysis
24. A technique for resolving conflict in which the parties agree to have a neutral third
party hear the dispute and make a decision is called:
a. Forcing
b. Smoothing
c. Arbitration
d. Negotiation
25. You as a project manager have decided to show the project performance trends with
the help of charts. Which of the following two charts will help you to do that?
a. Pareto chart & Control Chart
b. Control chart & Run Chart
c. Gantt Chart & Control Chart
d. Histogram & Run Chart
26. Tools and techniques used in integrated change control are all of the following
a. Project Management Information System
b. Project Management Methodology
c. Project Change Methodology
d. Expert Judgment
27. In taking over a failing project you hold a status meeting and find that the
Engineering and marketing team members are avoiding each other on taking
decisions on various key points of the project. The type of behaviour the team
members are demonstrating is:
a. Problem Solving
b. Withdrawal
c. Compromising
d. Forcing
28. What is the primary way that a project manager can use to measure project
a. Use trend analysis
b. Perform an inspection
c. Conduct a performance review
d. Performa vendor audit

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29. _____________ monitors specific project results to determine if they comply with
relevant quality standards and identifies ways to eliminate causes of unsatisfactory
a. Quality planning
b. Quality assurance
c. Quality control
d. Process control
30. An input to the quality assurance process is:
a. Quality management plan
b. Scope Statement
c. Standards and regulations
d. Checklists
31. A project manager needs to determine how the manufacturing is going for the new
micro satellites. Each satellite takes about three days to manufacture and costs US
$125,000. The inspection process has been a source of concern. The satellites are so
small that inspection would destroy them. Under these circumstances, what should
the project manager do?
a. Outsource the inspection to another firm with more expertise
b. Evaluate the attributes of the population
c. Inspect a sample of the satellites
d. Decrease the costs of quality
32. Which of the following has the primary responsibility of establishing design and test
a. Senior Management
b. Project Management
c. Engineering Team
d. Quality Control Team
33. Which of the following is a common format for performance reporting?
a. Pareto Diagrams
b. Bar charts
c. Responsibility Assignment Matrices
d. Control Charts
34. Performance reports should address all the needs of the ___________?
a. Management
b. Team members
c. Project manager
d. Stakeholders
35. Progress reporting, variance reporting, and cross-team meetings are forms of which
of the following?
a. Stakeholder management
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b. Risk management and reporting

c. Quality management
d. Communication management
36. If a project manager wants to examine project results over a period of time to
analyze the improvement in performance, what would she use?
a. Trend report
b. Forecasting report
c. Status report
d. Variance report
37. Which one of the following is the most suitable method of analyzing project
a. EVM
b. Management by walking around
c. Communications management
d. Project status reporting
38. In your new project, you have to provide a critical deliverable within five months and
do not have time to go through the Conduct Procurements process. You decide to
sign a contract with a supplier with whom your company has done some work in the
past. The risk you are accepting in this situation is:
a. The ability of the supplier to deliver the goods
b. Collusion between the supplier and your team
c. Lack of proper scope definition
d. Lack of a legally binding agreement
39. Verify Scope is the process of formalizing acceptance of the completed project
deliverables. Which of the following is a tool and technique for this process?
a. Requirements matrix
b. Inspection
c. Facilitated workshops
d. Product analysis
40. During the intermediate management review on your project that's worth $20K, it is learnt
that the cumulative PV is $10K, the cumulative AC is $8K, and the cumulative EV is $6K.
Based on the project data, which of the following is least TRUE??
a. The project team has accomplished less than it was planned
b. Continuing at the same pace the project objectives will be achieved in time
c. Continuing at the same speed the project objectives will not be achieved in time
d. Project team has spent less money than was planned

41. What is the Cost Variance for a project with the following parameters,
CPI = 1.2, SPI = 0.8, PV = $600,000, SV = $1,20,000

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42. Which of the following states the correct formula to compute Estimate at Completion (EAC)?
a. BAC / SPI
b. BAC / CPI
c. BAC x CPI
43. Which of the following is NOT true about Analogous estimating?
a. Estimates are prepared with a limited amount of detailed information and
understanding of the project
b. Also known as Top down Estimating technique
c. It is extremely difficult for projects with uncertainty
d. It is more accurate than any estimating technique

44. Which of the following estimates is done during the planning phase and is in the range of -10
to +25%?
a. Definitive estimate
b. Budget estimate
c. Rough Order of Magnitude estimate
d. Planning estimate

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1. A company is making an effort to improve its project performance and create historical records
of past projects. What is the best way to accomplish this?
a. Create project management plans
b. Create lessons learned
c. Create network diagrams
d. Create status reports
2. Customer satisfaction should be measured at the end of the project to maintain long-term
relationships. Which of the following is NOT always an aspect of customer satisfaction?
a. The product meets its stated and unstated requirements
b. The project is profitable
c. The product is high quality
d. The customers needs are met
3. Project closing is the last phase of the project life cycle and Dan is excited to be near to the
project completion. He finds that while doing project closing he needs to concentrate his efforts
on many areas. They are:
a. Schedule control and Perform Quality Control
b. Information distribution and Contract Administration
c. Activity Definition and Activity Sequencing
d. Close Contract and Close Project
4. Close Contract and Close Project are different as:
a. Close contract is only performed once in a project
b. Close project is performed once in each phase and at the end of the project
c. Only close contract is required in every project
d. There is no difference
5. Too frequently, project managers are so glad to have completed the project that they do not go
through the necessary final steps in the contract closeout. A written formal statement that the
project has been completed should:
a. Be done at the closeout meeting
b. Finalize the project
c. Be provided by the contact administration representative or organization to the seller
d. Resolve any outstanding contract disputes

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6. What should you avoid when you are organizing documents as Lessons learned?
a. Devise the lessons learned documentation in a wording which is easy to understand for a
reader who is not familiar with the project.
b. Lessons learned must detail how certain groups or persons caused failures and delays,
especially if they are inside the own organization.
c. Writing lessons learned should be an exercise enhancing your personal learning experience.
Make sure you grasp what you are writing down.
d. Keep lessons learned documents at a place where they are easy to access and to retrieve for
those who may later need the information.
7. Your client has terminated your project before it is complete. Which of the following is
a. You must stop all work and release the team immediately
b. You must work with the team to document the lessons learned
c. You must keep the team working on the project to give your senior management time to
talk to the client
d. You must update the project management plan to reflect this change
8. During procurement closure, a procurement audit includes all of the following EXCEPT:
a. Reviewing the contract terms to ensure that they have all been met
b. Identifying successes and failures that should be recognized
c. Documenting lessons learned
d. Using the payment system to process consideration as per the terms of the contract
9. Which of the following tools is used to document the lessons that were learned when the
contract was administered?
a. Quality audit
b. Buyer-conducted performance review
c. Contract review
d. Procurement audit
10. You have just been informed by the Project sponsor that the customer intends to terminate the
project in the middle of the execution process group. Which of the following will you do FIRST
as a project manager?
a. Share this information with all stakeholders by email
b. Evaluate the impact of project closure
c. Initiate the Close Project or phase process
d. Meet the sponsor to discuss the course of actions
11. Instead of rejoicing project end, the stakeholders are breathing a sigh of relief. None of them
were confident that the project would meet the end date. Which of the following is NOT one of
the reasons that this project had difficulty?
a. Lack of a payback period
b. Lack of milestones
c. Lack of a communication plan
d. Lack of a stakeholder management plan

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12. Which of the following is an input to the 'Close Procurement' process?

a. Project management plan
b. Project documentation
c. Expert Judgment
d. Accepted deliverables
13. Which of the following is a Tool and Technique for the 'Close Project' process?
a. Expert Judgment
b. Accepted deliverables
c. Project charter
d. Project management plan
14. Your project team has completed the project work. All of the following must be done before the
project can be closed EXCEPT:
a. Ensure that the schedule baseline has been updated
b. Get formal acceptance of the deliverables from the customer
c. Make sure the scope of the project was completed
d. Verify that the product acceptance criteria have been met

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1. Which of the following is identified by Fiedler as an important contextual circumstance that
influences the appropriateness of a leaders style?
a. Subordinate maturity
b. Subordinates pay level
c. Leader position power
d. Group composition
2. There are situations in which leadership is not important because leadership __________
enable subordinates to function well without leader guidance.
a. substitutes
b. styles
c. neutralisers
d. willingness

3. Participative styles of leadership would be more acceptable in countries that have cultures
a. power-distance and uncertainty avoidance are low, but individuality and masculinity are
b. medium power-distance and individualism, low uncertainty avoidance and masculinity.
c. low power distance and uncertainty avoidance and high individualism and masculinity.
d. medium power-distance and individualism, but high uncertainty avoidance and

4. The ability of a product to be used for different purposes at different capacities and under
different conditions determines its:
a. Usability
b. Flexibility
c. Operability
d. Availability

5. In negotiations, what is a fait accompli tactic?

a. Making personal attacks which could be downright insulting
b. Playing role of Good guy and Bad guy in a team
c. Claiming an issue has already been decided and therefore cannot be changed
d. Hiding or partially disclosing the complete information

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6. Which of the following is most effective while negotiating?

a. Yielding
b. Forcing
c. Collaborating
d. Compromising
7. What is the best way of explaining the Zero Defect Concept?
a. Its a concept that defines the performance standard for quality management
b. It's quality concept that's used by the management to communicate to all employees
that everyone should do things right the first time
c. It's a motivational technique that promotes "doing it right the first time"
d. A&B
8. You want Quality management for your project. You know in the field of quality, Six Sigma is
a. A quality improvement initiative under taken by the performing
b. A Quality improvement initiative that can improve the quality of the project's product
c. A quality improvement initiative that focuses on systematically correcting mistakes
revealed through inspection
d. A quality improvement initiative that can improve the quality of the project's
9. A leadership style in which the project manager shares problems with team members and
formulates solutions as a group is called :
a. Consultation
b. Autocratic
c. Laissez-fare
d. Consensus
10. Project A has an Internal Rate of Return (IRR) of 20%, Project B has an IRR of 12%, Project C
has an IRR of 22%, Project D has an IRR of 10%. Which of these would be the BEST project?
a. Project A
b. Project B
c. Project C
d. Project D
11. Payback period needs to be calculated for your project that will be completed in 3 years. The
internal rate of return (IRR) is 7% and the annual savings expected are $500K per year. The
total cost of the project is $3,000K. Payback period will be?
a. 3 years
b. 6 years
c. 7.5 years

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d. 12 years

12. Risks can be divided into two basic types: business risk and pure or insurable risk. Of the
following, which one fall(s) under business risk?
a. Personal loss
b. Breakdown loss
c. Profit Loss
d. Price variation
13. There are two basic types of warranties. What warranty type relates to "merchantability" or
"fitness for use"?
a. Expressed
b. Implied
c. Guarantee
d. Selective
14. Which of the following constitutes Juran's "quality trilogy"?
a. Planning, inspection, control
b. Planning, improvement, control
c. Planning, organizing, control
d. Product, price, customer

15. Which type of leadership style is most appropriate when managing large number of low
skilled workers?
a. Autocratic
b. Paternalistic
c. Democratic
d. Paradorma
16. What of the following is NOT true about Affinity diagrams?
a. Also known as KJ method
b. Helps to synthesize large amounts of data by finding relationships between ideas
c. Aids in solving a problem or analyzing a situation
d. Is a time management tool
17. Portfolio Management is the responsibility of the senior management team of an
organization or business unit. Of the following, which is NOT the type of technique that is
used to support portfolio management process,
a. Heuristic model
b. Scoring technique
c. Visual or mapping techniques
d. Grid technique

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18. According to the Utility Theory, what are the dimensions on the X and Y axis?
a. X-axis denotes money at stake and y-axis denotes utility
b. X-axis denotes utility and y-axis denotes money at stake
c. X-axis denotes performance and y-axis denotes money at stake
d. X-axis denotes money at stake and y-axis denotes performance
19. Which of the following statements is not true regarding cash flow analysis techniques?
a. The discounted cash flow technique compares cash inflows as a total, while NPV
calculates cash inflows period by period and then totals the present value of each period
b. The discounted cash flow technique and the NPV technique both take the time value of
money into consideration
c. NPV is the most conservative cash flow analysis technique and assumes reinvestment at
the cost of capital
d. The discounted cash flow technique may use future value and present value formulas to
determine the value of the investment or return. It's the least precise of all the cash flow
20. Which of the following is not a measure of the profitability of a project or program?
a. Return on original investment
b. Net present value
c. Depreciation
d. Discounted cash flow
21. The swiftest and the most effective communication occurs among people which have?
a. Common points of view
b. Dissimilar interests
c. Advanced Professional degrees
d. The ability to reduce perception barriers
22. Paraphrasing is most closely associated with which part of the communication process?
a. Encoding
b. Decoding
c. Barriers
d. Feedback
23. What are the two events, which cannot both occur in a single trial, known as?
a. False events
b. Mutually exclusive
c. Statistically independent
d. Just in time
24. Which of the following looks at determining if the project idea is a realistic project?
a. Matrix study
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b. Demand study
c. Case project study
d. Feasibility study

25. As a project manager for a seminar and training session with approximately 2,000-2500
employees attending, you have rented a hall for the seminar. However, you are unsure
exactly how many people will attend. Moreover, the number of tables required will change
depending on attendance. The cost of the furniture should be considered?
a. Variable cost
b. Direct cost
c. Fixed cost
d. Transient cost

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