1. What is the standard definition of a project according to PMBOK®?

A) A permanent process that delivers business value

B) A temporary endeavor to build teams
C) A temporary endeavor undertaken to create a unique product, service, or result
D) A sequence of events without a defined outcome
Answer: C) A temporary endeavor undertaken to create a unique product, service, or result

2. Which of the following sectors first adopted project management practices widely?
A) Automotive
B) Software
C) Military
D) Construction
Answer: C) Military

3. What led to the increased use of project organization in software development?

A) Success of mobile apps
B) Widespread internet usage
C) Complexity of development and scheduling
D) High profitability
Answer: C) Complexity of development and scheduling

Chandrayaan-3 Case Study

4. What was a key learning from Chandrayaan-2 that contributed to the success of Chandrayaan-3?
A) Increasing mission duration
B) Shifting to Mars exploration
C) Identifying and correcting prior errors
D) Reducing collaboration
Answer: C) Identifying and correcting prior errors

5. Which of the following is NOT a factor mentioned in the Chandrayaan-3 example of project
management?
A) Detailed planning
B) Monitoring and control
C) No collaboration with external institutions
D) Clear objectives
Answer: C) No collaboration with external institutions

Project Structure and Concepts

6. What is the correct hierarchy in project structure?
A) Project → Program → Work Unit → Task
B) Program → Project → Task → Work Package → Work Unit
C) Task → Project → Program
D) Program → Work Unit → Task
Answer: B) Program → Project → Task → Work Package → Work Unit

7. What are the three components of the Triple Constraint?

A) Time, Quality, Employees
B) Scope, Risk, Time
C) Scope, Time, Cost
D) Budget, Timeline, Leadership
Answer: C) Scope, Time, Cost

8. What is a key responsibility of the project manager related to the triple constraint?
A) Develop marketing strategy
B) Hire project team
C) Manage trade-offs among scope, time, and cost
D) Track competitor activity
Answer: C) Manage trade-offs among scope, time, and cost

9. What is considered part of the outcome in project management besides the deliverable itself?
A) Team size
B) Completion time and cost
C) Documentation
D) Stakeholder count
Answer: B) Completion time and cost

Scope, Goals, and Characteristics

10. What is scope in project management primarily tied to?
A) Cost of hiring
B) Deadline adjustment
C) Client expectations and deliverables
D) Number of meetings
Answer: C) Client expectations and deliverables

11. Which of the following is NOT an ancillary goal of project management?

A) Improving organizational project competency
B) Developing individual managerial skills
C) Building vacation plans
D) Entering new markets
Answer: C) Building vacation plans

12. What is NOT a characteristic of a project?

A) One-time occurrence
B) Unique
C) Infinite duration
D) Has a defined start and end
Answer: C) Infinite duration

Constraints & Environment

13. What is a common cause of conflict in project environments?
A) Excessive training
B) Lack of scheduling tools
C) Competition for limited resources
D) Too many stakeholders
Answer: C) Competition for limited resources

14. What must a project manager do when managing interdependencies?

A) Limit communication
B) Isolate the project from others
C) Maintain clear interactions with other projects and external groups
D) Ignore resource competition
Answer: C) Maintain clear interactions with other projects and external groups

15. Why is budget often a cause of conflict in projects?

A) Budgets are usually too large
B) Budgets are rarely discussed
C) Budgets are often implied and strictly limited
D) Budgets are set by external competitors
Answer: C) Budgets are often implied and strictly limited
1. Which of the following is an example of a non-project?
A) Developing a new product
B) Constructing a dam
C) Preparing school lunches
D) Organizing a conference
Answer: C) Preparing school lunches

2. What is a defining feature of a quasi-project?

A) Fixed budget and timeline
B) No specific tasks or deadlines
C) Managed by a certified project manager
D) Well-documented plan
Answer: B) No specific tasks or deadlines

Why Project Management?

3. Which of the following is NOT one of the three forces driving the need for project management?
A) Exponential expansion of knowledge
B) Stable market conditions
C) Complex, customized goods and services
D) Global competition
Answer: B) Stable market conditions

4. What is the primary purpose of organizing a task as a project?

A) Reduce workload
B) Increase company revenue
C) Focus responsibility and authority
D) Enable outsourcing
Answer: C) Focus responsibility and authority

Project-Based Organization: Advantages & Disadvantages

5. Which of the following is a benefit of project-based organizations?
A) Higher personnel utilization
B) Strict control by the HR department
C) Better customer relations and ROI
D) Decreased interdepartmental coordination
Answer: C) Better customer relations and ROI

6. What is a disadvantage of project-based organizations?

A) Lower profit margins
B) Less complexity
C) Violations of organizational policies
D) Slower development times
Answer: C) Violations of organizational policies

7. What is one limitation of project management?

A) Too many deliverables
B) Lack of Gantt charts
C) May indicate the failure of the functional organization
D) Excessive use of automation
Answer: C) May indicate the failure of the functional organization

8. Which issue does a project manager often face in traditional organizations?

A) Too much funding
B) Lack of responsibility
C) Authority not matching responsibility
D) Redundant tools
Answer: C) Authority not matching responsibility

Trends in Project Management

9. What is “projectizing”?
A) Creating a new department
B) Assigning functional tasks artificial deadlines and budgets
C) Closing down non-performing teams
D) Outsourcing strategy
Answer: B) Assigning functional tasks artificial deadlines and budgets

10. What is the purpose of a Project Management Office (PMO)?

A) Conduct legal audits
B) Evaluate and improve project maturity
C) Replace project managers
D) Hire new employees
Answer: B) Evaluate and improve project maturity

11. What best describes virtual projects?

A) Projects using AI to make decisions
B) Projects with face-to-face teams
C) Projects managed across geographic locations and time zones
D) Projects requiring zero communication
Answer: C) Projects managed across geographic locations and time zones

12. Agile project management focuses on:

A) Waterfall-style plans
B) Eliminating customer interaction
C) Continuous releases and customer feedback
D) Avoiding iteration
Answer: C) Continuous releases and customer feedback

Project Life Cycle

13. Which stage is NOT part of the typical project life cycle?
A) Conception
B) Funding
C) Control
D) Termination
Answer: B) Funding

14. The “S-shaped” life cycle curve indicates:

A) Uniform resource usage throughout
B) Maximum effort at the start
C) Gradual buildup of effort, peak mid-way, then taper off
D) Effort remains constant
Answer: C) Gradual buildup of effort, peak mid-way, then taper off

15. In the "inverse S-shaped" curve, manpower is:

A) High at the end
B) Constant throughout
C) High at the start and reduces gradually
D) Not required
Answer: C) High at the start and reduces gradually

16. Which project life cycle is compared to the process of baking a cake?
A) S-curve
B) J-curve
C) Inverse S-curve
D) Double helix
Answer: B) J-curve

Project Risk
17. When is project risk typically highest?
A) End of the project
B) During evaluation
C) At the start of the life cycle
D) After team disbandment
Answer: C) At the start of the life cycle

1. In the Waterfall method of project management, what is true?

A) All phases run in parallel
B) Iterative feedback is encouraged
C) One phase is completed before starting the next
D) There are no predefined stages
Answer: C) One phase is completed before starting the next

2. What key meeting in 2001 led to the Agile Manifesto?

A) PMBOK Conference
B) Lean Sigma Summit
C) Gathering of 17 software developers and project experts
D) Waterfall Transition Forum
Answer: C) Gathering of 17 software developers and project experts

Agile Manifesto & Values

3. Agile prioritizes which of the following over processes and tools?
A) Timelines
B) Individuals and interactions
C) Project documentation
D) Cost control
Answer: B) Individuals and interactions

4. What is emphasized over comprehensive documentation in Agile?

A) Status meetings
B) Budget tracking
C) Working software
D) Managerial reporting
Answer: C) Working software

5. Agile values what over contract negotiation?

A) Formal agreements
B) Legal processes
C) Customer collaboration
D) External approvals
Answer: C) Customer collaboration

6. Which Agile value addresses adapting to change?

A) Following a strict plan
B) Responding to change
C) Documenting all procedures
D) Fixed contract execution
Answer: B) Responding to change

Agile Principles
7. What is the highest priority in Agile projects?
A) On-time delivery
B) Satisfying the customer through early and continuous delivery
C) Reducing documentation
D) Having no changes during execution
Answer: B) Satisfying the customer through early and continuous delivery

8. Agile promotes working software delivery frequency of:

A) Once a year
B) Every 6 months
C) A couple of weeks to a couple of months
D) Every 10 days
Answer: C) A couple of weeks to a couple of months

9. According to Agile, the best way to communicate in a team is:

A) Reports
B) Email
C) Face-to-face conversation
D) Chat groups
Answer: C) Face-to-face conversation

10. What is the primary measure of progress in Agile?

A) Budget utilization
B) Working software
C) Customer satisfaction scores
D) Number of meetings held
Answer: B) Working software

11. What principle encourages minimal work?

A) Efficiency through excess
B) Simplicity—the art of maximizing the amount of work not done
C) High documentation culture
D) Multitasking
Answer: B) Simplicity—the art of maximizing the amount of work not done

12. Where do the best architectures and designs come from, according to Agile?
A) External consultants
B) Top-down planning
C) Self-organizing teams
D) Senior management only
Answer: C) Self-organizing teams

Characteristics of Agile & Scrum

13. What is a “sprint” in Agile methodology?
A) The beginning phase of project initiation
B) A term for closing meetings
C) A short, time-boxed iteration to complete tasks
D) A meeting with clients
Answer: C) A short, time-boxed iteration to complete tasks

14. What is a core trait of Scrum teams?

A) Top-down management
B) Large, multi-layered hierarchy
C) Self-management
D) Remote outsourcing
Answer: C) Self-management

15. Who developed the Scrum framework?

A) Steve Jobs and Bill Gates
B) Jeff Bezos and Elon Musk
C) Ken Schwaber and Jeff Sutherland
D) Brian Tracy and Peter Drucker
Answer: C) Ken Schwaber and Jeff Sutherland

Benefits of Agile
16. Which of the following is NOT a benefit of Agile?
A) Increased stakeholder collaboration
B) Reduced risk of project failure
C) Strict adherence to rigid contracts
D) Faster delivery of working products
Answer: C) Strict adherence to rigid contracts

17. What is a major driver of higher team morale in Agile?

A) High pay
B) Flexible deadlines
C) Use of self-managed teams
D) Smaller team size
Answer: C) Use of self-managed teams

Implementing Agile
18. What is a key challenge in adopting Agile practices?
A) Lack of tools
B) Licensing costs
C) Mindset shift from traditional methods
D) Excessive resources
Answer: C) Mindset shift from traditional methods

19. Which of the following helps build Agile understanding within an organization?
A) Building an internal audit team
B) Hiring external recruiters
C) Forming book clubs and Centers of Excellence
D) Increasing project documentation
Answer: C) Forming book clubs and Centers of Excellence

20. What attitude should organizations have toward early Agile failures?
A) Punish failures
B) Prevent them at all cost
C) Use them as learning opportunities
D) Avoid Agile altogether
Answer: C) Use them as learning opportunities

1. Which of the following is NOT a type of project selection model mentioned in the lecture?
A) Numeric
B) Strategic
C) Non-numeric
D) Scoring
Answer: B) Strategic

2. What is a key difference between numeric and non-numeric models?

A) Numeric models use software, non-numeric do not
B) Numeric models return values for comparison
C) Non-numeric models are for financial projects only
D) Numeric models ignore qualitative factors
Answer: B) Numeric models return values for comparison

Non-Numeric Models
3. What is a "Sacred Cow" in project selection?
A) A project with clear ROI
B) A project terminated early
C) A project initiated by top management without justification
D) A highly competitive project
Answer: C) A project initiated by top management without justification

4. Which non-numeric model focuses on projects essential to company survival?

A) Sacred Cow
B) Product Line Extension
C) Operating Necessity
D) Competitive Necessity
Answer: C) Operating Necessity

5. A project needed to maintain a firm’s market position falls under which category?
A) Operating Necessity
B) Comparative Benefit
C) Competitive Necessity
D) Sacred Cow
Answer: C) Competitive Necessity

6. The Product Line Extension model evaluates projects based on:

A) Political influence
B) Market price
C) Their fit within the existing product line
D) Their sustainability impact
Answer: C) Their fit within the existing product line

7. In the Comparative Benefit model, projects are ranked based on:

A) Cost reduction only
B) Profit generation
C) Perceived subjective benefit
D) Estimated timeline
Answer: C) Perceived subjective benefit

8. The Sustainability model prioritizes:

A) Short-term gains
B) Internal politics
C) Long-term profitability
D) Employee morale
Answer: C) Long-term profitability

Numeric Models
9. What does the Payback Period model evaluate?
A) Rate of return
B) Length of time to recover investment
C) Market share
D) Sustainability
Answer: B) Length of time to recover investment

10. Which of the following is a drawback of the payback method?

A) Requires complex calculations
B) Doesn’t include time value of money
C) Overuses probability
D) Encourages long-term thinking
Answer: B) Doesn’t include time value of money

11. The Discounted Cash Flow (DCF) method includes:

A) Only initial investments
B) Cash flows after the payback period only
C) All inflows and outflows adjusted for time value
D) Cash inflows only
Answer: C) All inflows and outflows adjusted for time value

12. What is another name for the discount rate in NPV analysis?
A) Growth rate
B) Prime rate
C) Hurdle rate
D) Interest yield
Answer: C) Hurdle rate

13. According to NPV, a project should be accepted if:

A) NPV is negative
B) NPV is zero
C) NPV is higher than other projects
D) NPV is lower than IRR
Answer: C) NPV is higher than other projects

Scoring Models
14. Scoring models allow:
A) Only numeric criteria
B) Only subjective opinions
C) Both monetary and qualitative criteria
D) Historical project comparison only
Answer: C) Both monetary and qualitative criteria

15. What is required in a Weighted Factor Scoring Model?

A) Scores based on random weights
B) Weights must sum to 100
C) Higher scores = less desirable projects
D) Equal weights for all criteria
Answer: B) Weights must sum to 100

16. What is NOT an advantage of scoring models?

A) Easy sensitivity analysis
B) Reflects managerial policy
C) Highly objective with no human input
D) Simple and intuitive
Answer: C) Highly objective with no human input
 Other Numeric Models
17. A model that evaluates projects based on timing and external conditions is called:
A) Scoring model
B) Discounted Payback
C) Window-of-Opportunity Analysis
D) Discovery-Driven Planning
Answer: C) Window-of-Opportunity Analysis

18. Which of the following is true about Discovery-Driven Planning?

A) Based on strict financial models
B) Assumes all future conditions are known
C) Begins with assumptions and adapts
D) Ignores key performance indicators
Answer: C) Begins with assumptions and adapts

19. What is a key difference between Discovery-Driven Planning and Window-of-Opportunity?

A) One is numeric, the other is non-numeric
B) One focuses on long-term funding
C) One is time-bound, the other is iterative
D) One is industry-specific
Answer: C) One is time-bound, the other is iterative

Risk in Selection
20. In project selection, which of the following is more uncertain?
A) Costs
B) Benefits
C) Deadlines
D) Equipment
Answer: B) Benefits
1. What does NPV stand for in project evaluation?
A) Net Project Value
B) New Present Volume
C) Net Present Value
D) Nominal Profit Value
Answer: C) Net Present Value

2. The NPV decision rule states that a project should be accepted when:
A) NPV is negative
B) NPV equals initial investment
C) NPV is positive
D) NPV equals zero
Answer: C) NPV is positive

3. What does the discount rate represent in the NPV formula?

A) Loan interest rate
B) Inflation rate
C) Time value of money
D) Net income
Answer: C) Time value of money

4. If NPV = 0, the decision is:

A) Always accept
B) Always reject
C) Based on manager’s preference (indifference)
D) Recalculate IRR
Answer: C) Based on manager’s preference (indifference)

Weighted Scoring Model

5. What is the main advantage of using a weighted scoring model?
A) It ignores subjective factors
B) It only compares costs
C) It allows inclusion of both quantitative and qualitative factors
D) It uses only time as a variable
Answer: C) It allows inclusion of both quantitative and qualitative factors

6. In a scoring model, what must the total of all weights equal?

A) 100
B) 10
C) 1
D) It can vary
Answer: C) 1

7. What is the primary purpose of assigning weights in the scoring model?

A) To equalize criteria
B) To highlight less important aspects
C) To reflect the relative importance of each criterion
D) To generate inflation-based values
Answer: C) To reflect the relative importance of each criterion

8. In the house-buying example, which house had the highest overall score?
A) New House 1
B) New House 2
C) New House 3
D) New House 4
Answer: B) New House 2 (Score: 3.73)

Internal Rate of Return (IRR)

9. What is IRR in project finance?
A) Internal Revenue Recalculation
B) Instant Return Rate
C) Internal Rate of Return
D) Indexed Risk Rate
Answer: C) Internal Rate of Return

10. What condition defines the IRR of a project?

A) IRR equals cost of capital
B) NPV equals 1
C) NPV equals 0
D) Payback period is minimum
Answer: C) NPV equals 0

11. What is the decision rule for IRR?

A) Accept if IRR is higher than cost of capital
B) Accept if IRR is lower than inflation
C) Reject if IRR is above 10%
D) Accept only if IRR equals the discount rate
Answer: A) Accept if IRR is higher than cost of capital

12. What is the relationship between discount rate and present value in IRR?
A) Higher discount rate increases present value
B) Lower discount rate decreases present value
C) Higher discount rate decreases present value
D) No effect
Answer: C) Higher discount rate decreases present value

13. In the IRR example, which rate gave a value closest to the investment amount?
A) 14%
B) 15%
C) 16%
D) 17%
Answer: B) 15% (Resulted in ~$100,801)

14. What refined IRR value was calculated from interpolation between 15% and 16%?
A) 15.10%
B) 15.25%
C) 15.37%
D) 15.50%
Answer: C) 15.37%

Analytic Hierarchy Process (AHP)

15. AHP stands for:
A) Analytical Hierarchy Protocol
B) Analytic Hierarchy Process
C) Asset Handling Process
D) Advanced Hierarchical Planner
Answer: B) Analytic Hierarchy Process

16. Who developed the AHP methodology?

A) Peter Drucker
B) T. L. Saaty
C) Elon Musk
D) Michael Porter
Answer: B) T. L. Saaty

17. What is used to check the consistency of the judgments in AHP?

A) Payback period
B) Consistency index
C) Discount rate
D) Profitability ratio
Answer: B) Consistency index

18. What is the formula for the Consistency Ratio in AHP?

A) CI / ROI
B) CI / RI
C) CR = NPV / IRR
D) RI / CI
Answer: B) CI / RI

19. What is the interpretation of a Consistency Ratio of 0.07?

A) Inconsistent data
B) Acceptable consistency
C) Reject the result
D) Indicates duplicate entries
Answer: B) Acceptable consistency (since it’s < 0.10)