Project Management (Sem.

VIII Institute Elective)

Q. Practice Question of Project Management Marks
no Set 3

1 Which of the following is not an example of formal communication? 1

a. Contract
b. email
c. Project status report
d. Status meeting
2 Which one of the following statements is true? 1

a. Independent reviews and quality audits form part of quality assurance to ensure
the project manager delivers on time and to budget.
b. Quality assurance provides confidence to stakeholders that requirements for
quality will be exceeded.
c. Quality control verifies that the project deliverables conform to specification, are
fit for purpose and meet stakeholder expectations.
d. Quality planning enables the project manager to manage the trade-off between
customer expectations and budget.
3 Who owns the Project Management Plan (PMP)? 1

a. The project team.

b. The chief executive.
c. The project manager.
d. The project support office.
4 Which statement best describes a responsibility of the project manager: 1

a. To be the sole source of expertise for estimating techniques on cost and time.
b. To deliver the project objectives to enable benefits to be realised.
c. To take ultimate accountability for the delivery of the business benefits.
d. To delegate all accountability for managing time, cost and quality to team leaders.
5 A project is typically defined in terms of scope, time, cost and which other parameter? 1

a. Benefits.
b. Quality.
c. Tolerance.
d. Controls.
6 What is defined as “the ability to influence and align others towards a common purpose”? 1

a. Teamwork.
b. Motivation.
c. Management.
d. Leadership
7 In project management, the term quality is best defined as: 1

a. Inspection, testing and measurement.

 Project Management (Sem. VIII Institute Elective)
b. Reviews and audits.
c. Fitness for purpose of deliverables.
d. Professionally-bound project reports.
8 PMP stands for 1
a. Project Management Planning
b. Project Management Professionals
c. Project Management Process
d. Project Management Phase

9 Which from the following represents the correct project cycle? 1

a. Planning→Initiating→Executing→Closing
b. Planning→Executing→Initiating→Closing
c. Initiating→Planning→Executing→Closing
d. Initiating→Executing→Planning→Closing
10 The net present value is 1
a) The present value of all net cash flows that result from the project.
b) The present value of all revenues minus the present value of all costs that result from
the project.
c) The present value of all future net cash flows that result from the project minus the
initial investment required to start the project.
d) All of the above
11 The items to be delivered from a project which includes reports & plans is known as 1

a) Non deliverables
b) Deliverables
c) Task assigned
d) Hierarchy planning
12 Who is responsible for basic product design and development as well as functional analysis? 1

a) Contract Administrator
b) Support Service Manager
c) Project controller
d) Systems Architect
13 A project document that describes all the work which must be done to complete the project is 1
known as

a) Work boundary structure

b) Work break structure
c) Work breakdown structure
d) Work basic structure
14 What does the teams “Forming, Storming, Norming and Performing” relates to? 1

a) Root cause identification

b) Steps of brainstorming process
c) Stages of team growth
 Project Management (Sem. VIII Institute Elective)
d) Process variation reduction and improvement phases.
15 What type of team will have members with different skills or roles from different areas within an 1
organization?

a) Process
b) Parallel
c) Self-directed
d) Cross-functional
16 Which of the following diagram looks like a fish skeleton? 1

a) Ishikawa diagram
b) Decision Tree
c) Tornado diagram
d) Data flow diagram
17 Project Cost Management Plan is created as a part of:
a. Develop Project Management Plan process
b. Estimate Cost process
c. Determine Budget process
d. Control Cost process

18 In the time-cost optimization, using CPM method for network analysis, the crashing of the 1
activities along the critical path is done starting with the activity having
a. Longest duration
b. Highest cost slope
c. Least cost slope
d. Shortest duration
19 1

a. 1,3 and 4
b. 1and 2
c. 1,2 and 4
d. 3 and 4
20 Which is NOT true about Analogous Cost Estimating? 1
a. Uses Expert Judgment
b. Used when reference projects are similar
c. Does not require high expertise on part of estimators as estimates are based on previous
projects
d. Useful in early phases of the project.
21 Project execution (or implementation) is the phase in which the plan designed in the prior phases 1
of the ________________ is put into action.
 Project Management (Sem. VIII Institute Elective)
a. Project life
b. Initiative phase
c. Closing phase
d. All of the above

22 Monitoring is about assessing what work has been completed for a 1

_________________________.

a. Task
b. Programme or project including costs, risks and issues.
c. Closing
d. None of the above

23 Monitoring is about assessing what work has been completed for a 1

_________________________.

e. Task
f. Programme or project including costs, risks and issues.
g. Closing
h. None of the above

24 A _______________is a description of the work required for the procurement 1

a. statement of work

b. work

c. Time

d. All of the above

25 _______________are legal relationships, so it is important that legal and contracting 1

professionals be involved in writing and administering contracts

a. Quality

b. Resourse

c. Contracts

d. All of the above

26 _______________________ identify lessons learned in the procurement process. 1

a. Procurement audits

b. Process

c. Internal
 Project Management (Sem. VIII Institute Elective)
d. None of the above

27 Who are responsible for identifying project risks? 1

a. Project team members
b. Project stakeholders
c. Project managers
d. Project sponsor
28 A ____________________ lists the relative probability of a risk occurring on one side of a matrix 1
or axis on a chart and the relative impact of the risk occurring on the other.

a. Risk

b. Contract

c. probability/impact matrix or chart

d. All of the above

29 A _____________ is a diagramming analysis technique used to help select the best course of 1
action in situations in which future outcomes are uncertain.

a. decision tree

b. Search Tree

c. a & b

d. None of the above

30 __________________ documenting product requirements and identifying potential sources 1

Solicitation: obtaining quotations, bids, offers, or proposals as appropriate

a. Planning
b. Quotations
c. Solicitation planning
d. All of the above

31 2

a. A
b. B
c. C
 Project Management (Sem. VIII Institute Elective)
d. D

32 If the project development cost is 100,000 and it provides 105,000 in expected benefits then what 1
would be the Return On Investment?

a) 5%
b) 10%
c) 20%
d) 15%
33 If the probability of risk is 30% and impact is 4 then what would be the PI score of risk? 2
a) 1.8
b) 1.9
c) 1.2
d) 8.0
34 If accompany spends 100,000 to develop an application system and receives a net cash return of 2
20,000 per year then what will be the payback period?
a) 3 years
b) 4 years
c) 5 years
d) 6 years
35 2

a. 59.405
b. 69.405
c. 79.405
d. 89.405
36 Project X requires an initial investment of $35,000 but is expected to generate revenues of 2
$10,000, $27,000 and $19,000 for the first, second, and third years, respectively. The target rate
of return is 12%. What will be the value of NPV?
a. $ 7977
b. $8977
c. $9977
d. $6977
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37 2

38 Activities A, B, and C are the immediate predecessors for Y activity. If the earliest finish times 2
for the three activities are 12, 15, and 10, then the earliest start time for Y will be
a. 10
b. 15
c. 12
d. Cannot be determined
39 Activities P, Q and R instantly follow activity M, and their current start times are 12, 19, and 10. 2
Therefore, the latest finish time for activity M is
a. 11
b. 10
c. 18
d. Cannot be determined
40 The standard deviation for a PERT diagram is calculated 2
a. taking the sum of the standard deviations on all the nodes.
b. taking the sum of the standard deviations on the nodes on the critical path
c. taking the sum of the variances on the nodes on the critical path, then find the square root.
d. taking the sum of the variance on all the nodes, then find the square root