File: ch01, Chapter 1: Projects in Contemporary Organizations

RVJ Changes Jan 2006

Revised by Dwayne Whitten - July, 2008
Multiple Choice
1. The growing demand for a broad range of complex, sophisticated, customized goods and
services would have which one of the following implications for the management of
projects in modern organizations
a) Project managers are responsible for making detailed technical decisions
b) Project managers should rely on the use of teams to plan and execute projects
c) Most projects will be performed using subcontractors
d) The design of a project solution should always be frozen early in the planning process
Ans: b
Response: Refer to intro section
Level: easy

2. Identify the example that would not usually be considered a project.

a) Building a car
b) Developing a computer software application program
c) Designing a new product
d) Installing new equipment in an existing production line
Ans: a
Response: While it is true that automobiles have an element of customization, process
management techniques are used to mass-produce the vehicles. Refer to the section titled
Non Projects and quasi projects.
Level: intermediate

3. According to the authors, the prime objectives of project management are cost, time and
a) Schedule
b) Quality
c) Customer satisfaction
d) Performance
Ans: d
Response: Refer to Figure 1 - 1.

Level: easy

4. The term program refers to an exceptionally large, long-range objective that is broken
down into a set of ________.
a) Tasks
b) Projects
c) Subprojects
d) Campaigns
Ans: b
Response: Refer to section 1.1.
Level: easy

5. Five attributes that characterize a project include:

a) Purpose, repetition, interdependencies, consistency, uncertainty
b) Lifecycle, schedule, cost, uncertainty, independence
c) Performance, lifecycle, uniqueness, conflict, interdependencies
d) Purpose, lifecycle, conflict, certainty, independence
Ans: c
Response: Refer to section 1.1.
Level: easy

6. The mission of the _________ is to foster the growth of project management and build
professionalism in the field.
a) Project Management Institute
b) Manhattan Project
c) Project Management Book of Knowledge
d) ARPAnet
Ans: a
Response: section entitled The Project Manager
Level: easy
7. Which of the following statements is false in regards to projects?
a) Projects have limited budgets.
b) Projects have life cycles.
c) On most projects, conflict does not exist.

d) Every project has some elements that are unique.

Ans: c
Response: section 1.1 conflict
Level: intermediate
8. ______________, a term used to cover both risk quantification and risk response
planning, is devoted to estimating the impacts that uncertainties have on project outcomes.
a) risk planning
b) risk analysis
c)risk mitigation
d) risk mining
Ans: b
Response: section 1.4
Level: intermediate
Short Answer
9. Rising client expectations during execution of a project may lead to a condition known as
________.
Ans: scope creep.
Response: Refer to the section titled Three Project Objectives.
Level: easy

10. A project is a temporary endeavor undertaken to create a ________ product or service.

Ans: unique.
Response: Refer to section 1.1. This is the PMI definition of a project.
Level: easy

11. Having only partial or no information about a situation or outcome, often due to
ambiguity or complexity is known as ________.
Ans: uncertainty.
Response: Refer to the glossary.
Level: easy

12. With respect to project goals throughout the projects lifecycle, early in the lifecycle, the
project teams focus should be on how to achieve the required ________.
Ans: performance.
Response: Refer to section 1.3.
Level: advanced
13. An important implication of the project lifecycle concept is that a project will resist
________ of its existence.
Ans: termination.
Response: Refer to section 1.1 (life cycle with a finite due date).
Level: intermediate
True/False
14. Because the customer is not a member of the performing organization, the customer is
not a stakeholder of the project.
Ans: False
Response: Refer to the section titled Conflict.
Level: easy

15. The pattern of progress observed in every project lifecycle can be explained by the Scurve that exhibits a cumulative pattern of slow-rapid-slow progress.
Ans: False
Response: refer to section 1.3. Although this is common it does not occur in every
project.
Level: intermediate

16. The conventional project lifecycle can be described as a pattern of cumulative progress
that is slow-rapid-slow progress.
Ans: True
Response: Refer to Figure 1-3.
Level: easy

17. Earned value is based on the concept that the percentage of project completion is closely
correlated with cost or with the use of resources.
Ans: True
Response: refer to section 1.3.
Level: advanced

18. In a conventional project lifecycle, as work progresses uncertainty about the expected
outcome should increase.
Ans: False
Response: Refer to section Risk during the life cycles and Figure 1.7. Dispersion about
the expected outcome will decrease as the results of the project become known.
Level: easy

19. Project management provides an organization with powerful tools that improve its
ability to plan, implement, and control its activites.
Ans: True
Response: Refer to intro section
Level: easy
20. In general, projects today are getting smaller and smaller.
Ans: False
Response: Refer to section Forces Fostering Project Management
Level: moderate