College of Business and Economics(CBE), Department of Public Administration and Development

Management (PADM)

Model Exit-Exam | Project Planning and Management

Multiple Choice Questions

Time Allowed: 2:00 Hours

July 05, 2023

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1. A project is defined as:

1 point

A. A process of considerable scope that implements a plan.

B. An endeavor, which is planned, executed, and controlled; performed by people; and constrained by
limited resources.

C. A temporary endeavor undertaken to create a unique product or service.

D. An objective based effort of temporary nature.

2. All of the following are characteristics of a project except:

1 point

A. Temporary

B. Definite beginning and end

C. Interrelated activities

D. Repeats itself every month

3. Which of the following is not true about project?

1 point

A. Every project is unique

B. A project gives some output

C. Projects are not repetitive

D. Car manufacturing is an example of project

4. Projects are initiated in response of:

1 point

A. Stakeholder's pressure

B. Business needs

C. Technological obsolescence

D. Observed opportunities

E. All of the above

5. The concept of _________ states that changes related to one requirement of scope, time, or cost
that will at least influence one other element.

1 point

A. Three-point estimation

B. Triple constraint
C. Three wise men

D. Three needs theory

6. Which of the following statement is true about a Program?

1 point

A. Program is a group of related projects

B. A Program is group of unrelated projects

C. A Program is a part of a big project

D. the schedule that we have on our colander

7. A group of related projects that are managed in a coordinated way that usually include an element of
ongoing activity is called a:

1 point

A. Major project.

B. Project office.

C. Program.

D. Group of projects

8. Who is ultimately responsible for quality management on the project?

1 point

A. Project engineer

B. Project manager

C. Quality manager

D. Team member

9. A rough order of magnitude estimate is made during which project management process group?

1 point
A. Project planning

B. Project closing

C. Project executing

D. Project initiating

10. In which project management process group is the detailed project budget created?

1 point

A. Initiating

B. Project closing

C. Planning

D. Executing

11. Project Planning helps to eliminate except

1 point

A. Overambitious projects

B. Unsustainable projects

C. Undefined problems

D. Clarify goals and develop a vision

12. What is a common result of poor project planning?

1 point

A. Wasted effort

B. Lost time

C. Increased cost

D. All of the above

13. What does a project scope statement document?

1 point

A. What work is to be completed during the project

B. What deliverables need to be produced by the project

C. A and B

D. Neither A nor B

14. The purpose of the review of deliverables and project performance at the conclusion of a project
phase is to:

1 point

A. Determine how many resources are required to complete the project according to the project
baseline

B. Adjust the schedule and cost baselines based on past performance

C. Obtain customer acceptance of project deliverables

D. Determine whether the project should continue to the next phase

15. What is a visual representation of a project’s planned activities against a calendar called?

1 point

A. A Gantt chart.

B. A critical path network.

C. A product flow diagram.

D. A Pareto chart

16. The tasks of project scheduling includes all but one:

1 point

A. Establish milestones
B. Determining sequence of work

C. Building network

D. Analysis of interdependence

E. None of the above

17. A project has more than one critical path. What does this mean to you?

1 point

A. The quality may be reduced

B. It will cost more

C. The duration of the project reduces

D. The project may cost less

E. Risk increases

18. In which of the following phases of the project will most of the money be spent?

1 point

A. Initiating

B. Planning

C. Executing

D. Closing

19. Scheduling can best be defined as the process used to determine:

1 point

A. Overall project duration.

B. Project cost estimating.

C. The project management plan.

D. Sub-contractor’s responsibilities.
E. None of the above

20. Which one of the following statements is true?

1 point

A. An increase in project scope is likely to increase project cost.

B. A decrease in the project time is likely to increase project quality.

C. An increase in the project quality requirements is likely to decrease project cost.

D. A decrease in the project cost is likely to decrease project time.

21. Which of the following is not an output of a project?

1 point

A. Developing a new car

B. The production of cars

C. An enhancement to the car

D. Completing research on car

22. Your organization is considering to run a project which will entail an investment of $1,000,000. The
product from the project is forecasted to create revenues of $250,000 in the first year after the end of
the project and of $420,000 in each of the two following years. What is true for the net present value of
the project over the three years cycle at a discount rate of 10%?

1 point

A. The net present value is positive, which makes the project attractive.

B. The net present value is positive, which makes the project unattractive.

C. The net present value is negative, which makes the project attractive.

D. The net present value is negative, which makes the project unattractive.

23. The project manager is making sure that the product of the project has been completed according to
the project management plan. What part of the project management process is he in?
1 point

A. Planning

B. Executing

C. Monitoring and controlling

D. Closing

E. All of the above at same time

24. Whenever you receive a change request, what will be your next step?

1 point

A. Process for approval

B. Investigate it

C. Reject it

D. Ignore it

25. To control the schedule, a project manager is reanalyzing the project to predict project duration. She
does this by analyzing the sequence of activities with the least amount of scheduling flexibility. What
technique is she using?

1 point

A. Critical path method

B. Flowchart

C. Precedence diagramming

D. Work breakdown structure

E. All of the above

26. Which of the following Project Scope Management processes involves subdividing the major project
deliverables into smaller, more manageable components?
1 point

A. Plan Scope Management

B. Define Scope

C. Validate Scope

D. Control Scope

E. Create WBS

27. The WBS for the project represents:

1 point

A. All the tangible items that must be delivered to the client.

B. All the work that must be completed for the project.

C. The work that must be performed by the project team.

D. All the activities of the project.

28. You are creating your WBS and find that you keep decomposing tasks into smaller and smaller units.
How can you tell when you are done?

1 point

A. Keep decomposing tasks until you reach an amount of work that is small enough to reliably estimate
required resources and duration.

B. Keep decomposing tasks until you reach an amount of work that can be accomplished in one hour.

C. Keep decomposing work until you reach an amount of work that can be accomplished in your
organization’s basic work unit.

D. Keep decomposing work until you reach a predetermined number of hierarchy levels to keep the WBS
balanced.

29. A Cost Breakdown Structure shows costs assigned to:

1 point
A. Individual work packages using the Work Breakdown Structure.

B. Individual resources using the Work Breakdown Structure.

C. Individual resources using the Responsibility Assignment Matrix.

D. Individual deliverables using the Responsibility Assignment Matrix

30. Which of the following is NOT an example of a type of schedule report?

1 point

A. Gantt chart

B. Milestone chart

C. Fishbone diagram

D. Network diagram

E. None of the above

31. Change requests can occur due to:

1 point

A. An external event such as a change in government regulation.

B. An error or omission in defining the scope of the product.

C. An error or omission in defining the scope of the project.

D. all of the above

32. During which phase of the project will risks be the highest?

1 point

A. Initiating

B. Planning

C. Execution
D. Closing

E. Proportionally distributed

33. In which phase will the risks be at the lowest level?

1 point

A. Initiating

B. Planning

C. Execution

D. Closing

E. Proportionally distributed

34. Your project is late and to bring it back on track you are adding extra resources to some activities
and giving overtime to your team members. This is an example of:

1 point

A. Critical Chain

B. Fast Tracking

C. Crashing

D. Resource Leveling

35. A project manager in a construction company identified the project activities that were not giving
output as per the performance goals outlined in the project management plan. The finding is the result
of:

1 point

A. Direct and Manage Project Work

B. Monitor and Control Project Work

C. Develop Project Charter

D. Devising of Project Management Plan

E. None of the above

36. A project is typically defined in terms of the triple constraints, and one among the following is other
(4th) parameter?

1 point

A. Benefits.

B. Quality.

C. Schedule.

D. Controls.

37. Project reporting can best be defined as:

1 point

A. Informing stakeholders about the project.

B. Storing and archiving of project information.

C. Gathering stakeholder feedback.

D. Collecting project information.

38. The document that identifies what information needs to be shared, to whom, why, when and how is
called the:

1 point

A. Communication management plan.

B. Stakeholder mapping grid.

C. Document distribution schedule.

D. Responsibility assignment matrix.

39. Successful projects should have the following except:

1 point

A. A well-defined scope

B. Active management of risks

C. Process based lengthy decision-making

D. well-trained and experienced project team

40. At the beginning of project execution, you notice different opinions between team members relating
to project work and deliverables and to the level of overall complexity. What should you do right now?

1 point

A. Give your team members some time to develop a common understanding of the project scope and
product scope. Upcoming interface problems may be resolved later.

B. Use the risk management processes to identify and assess risks caused by misunderstandings and
develop a plan with measures in order to respond to them.

C. Organize meetings to identify and resolve misunderstandings between team members in order to
avoid interface problems, disintegration and costly rework early in the project.

D. Use interviews in private with each individual team member to inform them of your expectations and
your requirements in an atmosphere of confidence.

41. What is not true for change requests?

1 point

A. Change requests should always be handled in a controlled and integrative fashion.

B. Change requests surpassing the formal change control processes can lead to scope creep.

C. Change requests are always a sign of bad planning and should be avoided therefore.

D. None of the above

42. Tools of quality management includes all but one

1 point
A. The quality manual (policy manual)

B. Operational procedures

C. The quality plan

D. Quality reviews and audits

E. None of the above

43. _______ is normally not a method of RoI (return on investment) analysis.

1 point

A. Net present value projection

B. Sunk cost analysis

C. Simple payback calculation

D. Internal rate of return

E. All of the above

44. A significant number of projects fail to achieve their intended outcomes on time and within budget
due to:

1 point

A. Poor project specification

B. Being too confident of success

C. Unrealistic time and resource estimates

D. Unclear project objectives

E. All of the above

45. What is not a reason for companies to organize lessons learned?

1 point

A. Lessons learned databases are an essential element of the organizational process assets.
B. Lessons learned should focus on identifying those accountable for errors and failures.

C. Lessons learned sessions should bring about recommendations to improve future performance on
projects.

D. Phase-end lessons learned sessions provide a good team building exercise for project staff members.

46. What is not the main purpose of a final project report?

1 point

A. Acknowledging what has been done and achieved by all contributors.

B. Making stakeholders aware that the project has been closed out.

C. Preparing acceptance of the final product, service or result.

D. If a project has been cancelled before completion: Explaining the causes.

47. An important aim of a post-project review is to:

1 point

A. Validate overall progress to date against the budget and schedule.

B. Capture learning and document it for future usage.

C. Ensure acceptance of all permanent documentation, signed by the sponsor.

D. Establish that project benefits have been identified.

48. When a project has completed the handover and closure phase:

1 point

A. The project deliverables are ready for commissioning.

B. The project deliverables are ready for handing over to the users.

C. The project documentation must be disposed of.

D. The capability is now in place for the benefits to be realised.

49. The Monitor and Control Project Work process results in all of the following EXCEPT:
1 point

A. Change requests

B. Preventive actions

C. Defect repairs

D. Deliverables

50. Project manager of a travel excursion company is currently working on confirming that all project
deliverables have been successfully completed in order to transfer the project to the customer. What
process is the project currently in?

1 point

A. Verify Scope

B. Scope Closure

C. Close Project or Phase

D. Close Procurements

E. None of the above

51. Complete the following sentence: “The later a defect is found, __________ .”

1 point

A. the easier it is to find

B. the more expensive it is to repair

C. the less important it is to the product

D. the faster it is to repair

E. All of the above

52. A project is
1 point

A. An interrelated set of activities that has a definite starting and ending point

B. A temporary endeavor undertaken to create a unique product

C. Formed to solve a problem or take advantage of an opportunity

D. All of the above

53. A project is not

1 point

A. The smallest unit of work effort within the project

B. Operation of a business

C. A temporary endeavor

D. A & B

54. Projects are initiated in response of:

1 point

A. Stakeholder's pressure

B. Observed opportunities

C. Technological obsolescence

D. All of the above

55. One among the following is incorrect regarding the characteristics of a project;

1 point

A. an instrument of change

B. non-routine

C. composed of interdependent activities

D. None of the above

56. Project management involves all but one

1 point

A. Planning

B. Monitoring

C. Motivation

D. None of the above

57. One among the following is NOT an indicators of successful projects

1 point

A. A well-defined scope and agreed understanding of intended outcomes

B. Inadequately-defined and invisibly managed processes

C. Active management of risks, issues and timely decision-making

D. Clear and short lines of reporting

58. The most common reasons for project failure includes all but one

1 point

A. being too confident of success

B. having unrealistic expectations

C. poor project specification

D. contributors or partners having too much involvement

59. In addition to a description of the scope and objectives, this will include a justification for the
organizational fit and need for the project.

1 point
A. Project context

B. Rationale

C. Project objectives

D. Project scope

60. There are many reasons why organizations initiate projects. Some of the most common ones include
but one:

1 point

A. New strategic direction for the organization

B. Introduction of a new working environment

C. Need to replace an ageing system

D. New product

E. None of the above

61. A major reason for projects going wrong is a failure to properly define the scope. Defining and
agreeing the scope will help in all except one:

1 point

A. Manage expectations

B. Reduce ambiguities and risks

C. Identify the desired outcomes

D. Promote misunderstanding

62. Who is ultimately responsible for quality management on the project?

1 point

A. Quality Manager

B. Project engineer
C. Project manager

D. Team members

63. A project manager has just been assigned to a new project and has been given the preliminary
project scope statement and the project charter. The first thing the project manager must do is:

1 point

A. Begin work on a project management plan

B. Confirm that all the stakeholders have contributed to the scope

C. Analyze project risk

D. Create a project scope statement

64. The project management process groups are:

1 point

A. Plan, organize, develop, and control

B. Initiating, planning, expediting, and control

C. Initiating, planning, executing, monitoring &controlling, and closing

D. Plan, do, observe, commit

65. In which project management process group is the detailed project budget created?

1 point

A. Before the project management process

B. Initiating

C. Planning

D. Executing

66. A rough order of magnitude estimate is made during which project management process group?
1 point

A. Project Planning

B. Project Initiating

C. Project Closing

D. Project Executing

67. When should the project schedule be developed?

1 point

A. As early into the project as possible. A committed schedule should be there before any initiating or
planning processes are applied for the project.

B. During initiating. The definite project schedule should be developed concurrently with the project
contract (if applicable) and the project charter.

C. Scheduling should be avoided. Agile approaches with a backlog and a weekly to 4-weekly meeting
cycle are sufficient for modern project management

D. When most planning processes from time, scope, and procurement management have been finished.
These will then be iterated when necessary.

68. A group of related projects that are managed in a coordinated way that usually include an element
of ongoing activity is called a:

1 point

A. Major project

B. Project office

C. Program

D. Group of projects

69. To control the schedule, a project manager is reanalyzing the project to predict project duration. She
does this by analyzing the sequence of activities with the least amount of scheduling flexibility. What
technique is she using?
1 point

A. Critical Path Method

B. Flowchart

C. Precedence diagramming

D. Work Breakdown Structure

70. The project manager is making sure that the product of the project has been completed according to
the project management plan. What part of the project management process is he in?

1 point

A. Planning

B. Executing

C. Monitoring and controlling

D. Closing

71. When considering the following activities, which is the best example of a project?

1 point

A. Processing insurance claims

B. Producing automobiles

C. Writing policy manual

D. Monitoring product quality

72. Which of the following is not a typical project manager?

1 point

A. Managing a temporary activity

B. Overseeing existing operations

C. Managing non repetitive activity

D. Responsible for time, cost and performance trade-offs

73. Which of the following is true concerning the work breakdown structure (WBS)?

1 point

A. The WBS is the same as the Organisational Breakdown Structure (OBS).

B. The WBS is a hierarchical decomposition of the total scope of work to be carried out by the project
team.

C. The WBS is the same as the Work Packages.

D. The WBS is the bill of materials (BoM) needed to accomplish the work of the project.

74. The work defined at the lowest level of the breakdown structure to estimate as well as manage time
and cost is called the:

1 point

A. Activity

B. Task

C. Work package

D. Cost account

75. One among the following is not in common stages of constructing Critical Path in the project?

1 point

A. Define the project and specify all activities or tasks

B. Develop the relationships amongst activities

C. Draw network to connect all activities

D. Assign time and/or costs to each activity

E. None of the above

76. During human resource planning you identified that your team members are not sufficiently
qualified for their tasks. Which may be an appropriate solution to this problem?
1 point

A. Reduce level of effort

B. Develop a training plan

C. Plan quality audits

D. Plan quality inspections

77. Purchasing insurance is considered an example of risk:

1 point

A. Mitigation

B. Transfer

C. Acceptance

D. Avoidance

78. During a meeting with some of your project's stakeholders, you are asked to add to the project's
scope of work. The project records contain correspondence from before the Charter was signed in which
the project sponsor specifically declined the work being requested by these stakeholders. The BEST
thing for you to do is:

1 point

A. Tell the stakeholders the work cannot be added.

B. Evaluate the cost and time impacts of adding the work.

C. Add the work if it can be accommodated within the existing budget.

D. Talk to the sponsor and let her know of the request.

79. What is meant by the term "project network diagramme"?

1 point

A. Detailed description of work packages

B. Definition of tasks

C. Protection of the necessary resources

D. Graphical representation of activities or nodes and the dependencies between them

80. In resource planning, three main dimensions have key parts to play. However, which of the following
plays no part, or only a secondary part, in resource planning?

1 point

A. WHAT; project dimension

B. WHO; resource dimension

C. WHERE; place dimension

D. WHEN; time dimension

81. What is an important source of data for post-project costing?

1 point

A. The decisions taken

B. The actual data recorded

C. The project deadlines recorded

D. The work packages recorded

E. All of the above

F. None of the above

82. If a large project is subdivided into subprojects, for the project manager this generally means an
increase in:

1 point

A. project risk

B. coordination effort
C. planning work

D. financial requirements

E. All of the above

F. None of the above

83. How can you avoid all project risks?

1 point

A. It is impossible to avoid project risks completely, all projects have inherent risks

B. Add additional resources to a project so the project will be delivered on time should a risk occur.

C. Include an extra budget in the project.

D. Ensure all 6 project constraints are detailed and planned in order to avoid any risk to the project.

84. How many unknown risks can be identified in a project?

1 point

A. Indefinite

B. One

C. Four

D. Six

85. What project constraints may be impacted if project scope changes?

1 point

A. Project risk and budget will be impacted.

B. Quality, resources, risks, customer satisfaction or schedule may be impacted by a change to project
scope.

C. Project risk will be impacted.

D. Nothing will be impacted, the project will continue as planned.

86. What is meant by project scope?

1 point

A. Scope is the cost of the project.

B. Scope is how well the project works.

C. Project scope is the uncertainties or threats the project may face.

D. Project scope refers to what the project is expected to accomplish.

87. Project management entails _____.

1 point

A. Communicating every aspect of a project to all parties involved

B. Multi-tasking to ensure all tasks are completed

C. Using skills to take a project from start to finish

D. Managing every person and aspect of a project

88. Because tasks are often being completed at the same time, a project manager needs to _____.

1 point

A. Be a good leader

B. Be organized

C. Know about the projects

D. Be able to multi-task

E. All of the above

89. Which of the following is NOT an example of a type of schedule report?

1 point
A. Gantt Chart

B. Milestone chart

C. Fishbone diagram

D. Network diagram

90. What does it mean to understand and define the deliverables of a project?

1 point

A. To explain the budget of the project.

B. None of these answers are correct.

C. To explain what result or product the project will create.

D. To explain the deadline by which the project will be concluded.

91. What is project management?

1 point

A. The method of conducting employee performance evaluations.

B. The process of hiring employees to work on a project.

C. The use of resources to get a project from start to finish.

D. The decision to request that a team of people achieve a certain goal.

92. In project management, which technique compares current progress with the planned out progress?

1 point

A. Identifying risks

B. Understanding the deliverables

C. Monitoring and tracking progress

D. Understanding the scope

E. All of the above

93. Which of the following is not a feature of a project?

1 point

A. Planned , executed and controlled

B. Constrained by limited resources

C. Creates unique product or service

D. May be ongoing and repetitive

94. Which one is NOT usually a practice or technique of better project management?

1 point

A. Ordering supplies only when they run out

B. Monitoring progress

C. Defining the deliverables

D. Planning

95. Change requests can occur due to:

1 point

A. An external event such as a changing in government regulation.

B. An error or omission in defining the scope of the product.

C. An error or omission in defining the scope of the project.

D. All of the above

96. What are the 4 stages of team development?

1 point
A. Forming, Storming, Norming, Performing

B. Enthusiasm, Hope, Panic, Solution

C. Forming, Solutioning, Normalizing, Communicating

D. Direction, Motivation, Cooperation, Collaboration

97. The project is in execution, but your project team is unable to stop arguing about the project
milestones and the specific risks associated with them. This on-going conflict puts the project at risk of
running behind schedule. What would likely have helped avoid this conflict had it been properly created
first?

1 point

A. A project charter

B. Physical resource assignments

C. Quality metrics

D. A work break down structure

98. Why should a project team complete lessons learned documentation?

1 point

A. To ensure project closure

B. To show management what they’ve accomplished in the project

C. To show the project stakeholders what they’ve accomplished in the project

D. To help future project teams complete their projects more efficiently

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