The document discusses various aspects of project management, including phases of risk, characteristics of projects, organizational structures, budgeting methods, and performance assessment. It highlights the significance of project portfolios, team dynamics in different stages of development, and the importance of effective communication and resource allocation. Additionally, it addresses budgeting techniques and the evaluation of project outcomes through final reports.

1. Qhe degree of risk associated with a project is typically at
its highest during the _
phase.
a. conceptual ization
b. planning
c. execution
d. termination
7. A spider web diagram is useful for _
a. showing company performance on a number of criteria
simultaneously
b. collecting data on how a competitor manages projects
c. identifying industry standards for project management
maturity
d. coaching, evaluating and auditing projects
8. The project maturity model developed by the Center for
Business Practices would have
_____ rings if a spider web diagram were used.
a. three
b. four
c. five
d. six
9. Which of these is not characteristic of a project?
a. Projects are responsible for the newest and most improved
products, services and
organizational processes.
b. Projects are ad hoc endeavors with a clear life cycle.
c. Projects provide a philosophy and strategy for the
management of change.
d. Traditional process management functions of planning,
organizing and controlling do
not apply to project management.
10. Which of the following is not a project constraint?
a. the budget
b. the customer requirements

2. c. the schedule
d. the technical specifications
11. Projects differ from classic organizational processes
because projects are _
a. discrete activities
b. part of line organization
c. well established systems in place to integrate efforts
d. multi-objective
4
shapeType75fBehindDocument1pWrapPolygonVertices8;4;(214
98,0);(0,0);(0,21479);(21498,21479)posrelh0posrelv0pib
17. Which of the following statements about clients is best?
a. CI ient refers to the enti re customer organ ization.
b. Clients are concerned with receiving the project as quickly
as they can possibly get it.
c. Client groups tend to have similar agendas.
d. A single presentation is best when dealing with all client
groups in an organization so
that everyone hears exactly the same message.
18. The tendency of employees in a functionally organized
company to become fixated on their
own concerns and work assignments to the exclusion of the
needs of other departments is
known as _
a. layering
b. myopia
c. nepotism
d. siloing
19. The functional structure is well-suited when _
a. there are low levels of external uncertainty
b. there is high instability in the environment
c. project coordination is assigned to the lowest levels in an
organization
d. there must be rapid response to external opportunities and
threats
20. The manager of the Super Burrito Project is in the midst of

3. an important project team
meeting but Fred Fromage, the representative from the Cheese
department, is nowhere to
be found. After a brief investigation, it is determined that Fred's
manager in the Cheese
department has other plans for Fred's time and efforts over the
next several days and he
simply won't be available for Super Burrito Project work. The
organizational structure being
used here is unquestionably a _
a. strong matrix
b. weak matrix
c. project organ ization
d. chevre organization
2l. A major weakness of a matrix organizational structure for
project management occurs when
a. the environment is dynamic
b. resources are scarce and shared between functional
responsibilities and the
competing project
c. the number of human resource coordination meetings is
considered
d. one considers the dual importance of project management
and functional efficiency
6
shapeType75fBehindDocument1pWrapPolygonVertices8;4;(215
00,0);(0,0);(0,21479);(21500,21479)posrelh0posrelv0pib
8
(
27. Which statement about the use of the profile model is best?
a. The profile model requires careful calculation of the
percentage risk for each possible

4. project.
b. The scale used for the profile model can be any two
numerical variables that a
company deems important.
c. The efficient frontier in the profile model is where return
is 100 (or greater) and risk
is 0.
d. For a given level of risk, a positive move on the return
axes would indicate a superior
project.
28. Regardless of which selection method a firm uses, it
should always _
a. be able to predict how much revenue will be returned to
the firm each year
b. know which project will ultimately succeed and which
ones will fail
c. be objective in their selection method
d. use a weighted scoring technique
29. The systematic process of selecting, supporting and
managing a firm's collection of projects
is called _
a. heavyweight project management
b. matrix project organization
c. profile management
d. project portfolio management
30. The concept of project portfolio management holds that
firms should _
a. regard all projects as unified assets
b. manage projects as independent entities
c. focus on short-term strategic goals
d. focus on long-term constraints
31. A project with the chance for a big payout may be funded if
an important criterion is
a. cost
b. opportunity
c. top management pressure

5. d. risk
shapeType75fBehindDocument1pWrapPolygonVertices8;4;(214
98,0);(0,0);(0,21484);(21498,21484)posrelh0posrelv0pib
@hiCh of the following is a traditional duty of a project
champion?
a. cheerleader
b. visionary
c. politician
d. technical understanding
38. Which of the following is a nontraditional role of a project
champion?
a. cheerleader
b. leadership
c. administrative
d. control
39. In order to allocate costs more precisely, a company
will assign _
a. bar codes to each activity
b. activity codes to each subdeliverable
c. WBS codes to each activity
d. level 4 codes to each package element
40. Which of these statements about subdeliverables is best?
a. Subdeliverables have durations of their own.
b. Subdeliverables consume resources.
c. Subdeliverables have direct, assignable costs.
d. Subdeliverables summarize the outcomes of work
packages.
41. A young professor becomes obsessed with the latest
release of Halo and completely loses
sight of his research commitment to his colleagues, falling
hopelessly behind schedule and
consuming 80 of the department's computing budget. Addictive
behavior notwithstanding,
this sad tale would never have happened had _
a. configuration controls been established
b. trend monitoring been regularly performed

6. c. design controls been appropriately deployed
d. document control been conducted assiduously
42. Systems for monitoring the project's scope, schedule, and
costs during the design stage fall
under the head i ng of control.
a. configuration
b. acquisition
c. design
d. specification
10
shapeType75fBehindDocument1pWrapPolygonVertices8;4;(214
98,0);(0,0);(0,21484);(21498,21484)posrelh0posrelv0pib
--
/.R It appeared that everyone on the project team was finally on
board; Jim would bring the
V doughnuts to all team meetings and Jenny would make the
coffee. Fully caffeinated and on
a sugar high, the team was coming together and fully committed
to the project development
process. The team was now planted firmly in the stage of
group development.
a. storming
b. forming
c. norming
d. performing
49. "Our work here is done," the project leader shouted as he
surveyed the scene. "Go home and
reflect on what you've accomplished and I'll see you at the
world premiere once we're all
immortalized in a feature-length movie." This project team
is in the stage of
group development.
a. forming
b. norming
c. perform i ng
d. adjourning

7. 50. The use of electronic media including e-mail, internet and
teleconferencing to link
geographically dispersed members creates a(n) team.
a. electronic
b. virtual
c. telegenic
d. cyber
51. The two main challenges for virtual teams include _
a. maintaining autonomy
b. automating monotony
c. building trust
d. the bullwhip effect
52. Virtual teams are often slowed down by difficulty with
_
a. superordinate goals
b. task reliance
c. punctuated equilibrium
d. communication
12
shapeType75fBehindDocument1pWrapPolygonVertices8;4;(215
00,0);(0,0);(0,21484);(21500,21484)posrelh0posrelv0pib
c ~ consequences of failure categories of cost, schedule
reliability and performance were
~ieved to be 0.2,0.6,0.5 and 0.7. What is the overall
consequence of failure?
a.O.2
b.0.3
c.0.4
d.0.5
59. Input is received from an organization's management to
create a project budget in
______ budgeting.
a. zero-based
b. top-down
c. bottom-up
d. activity-based

8. 60. An advantage of top-down budgeting is _
a. that top management estimates of project costs are often
quite accurate, at least in
aggregate terms.
b. an elimination of the friction between top and lower levels
in the competition for
budget money.
c. that projects are no longer a zero-sum game among lower
level managers
d. top management budgets, by definition, cannot experience
overruns
61. A budget that is created by starting with the work
breakdown structure, determining costs for
each work package and then adding these costs together is
budgeting.
a. zero-based
b. top-down
c. bottom-up
d. activity-based
62. When properly performed, bottom-up budgeting has the
disadvantage of _
a. a lack of detail needed in project plans
b. a lack of coordination among project managers and
functional department heads
c. being a hindrance to top managers when prioritizing
projects that are competing for
the same scarce resources
d. a reduction of top management's control of the budget
process to one of oversight
14
shapeType75fBehindDocument1pWrapPolygonVertices8;4;(214
98,0);(0,0);(0,21484);(21498,21484)posrelh0posrelv0pib
/' 'Vity Z has estimates a=5, e-re. m=7; activity X has estimates
a=4, b=ll, m=6; and
~ivity Y has estimates a=3, b=12, m=8. Which of the following
statements is most

9. accurate?
a. Activity X is longer than Activity Y
b. Activity X has a higher standard deviation than Activity Z
c. Activity Z is shorter than Activity Y
d. Activity Y has a smaller variance than Activity Z
70. There's an old saying, "The job is not finished until the
paperwork is done." From an activity
network standpoint, this does not necessarily mean that the
paperwork can't begin until the
last non paperwork activity is completed. It might be possible to
work on some paperwork as
early activities are completed. In order to depict this in an
activity network, _
a. hammock activities could be drawn
b. subroutines could be added
c. shortcuts can be added to the network
d. laddering could be used to redraw the network
71. One approach to reducing project length would be to
_
a. convert parallel paths to be serial
b. convert merge activities to burst activities
c. use hammock activities in place of multiple activities
d. eliminate tasks on the critical path
72. A project's duration can be reduced by _
a. shortening the duration of critical path tasks
b. adding tasks to the critical path
c. adding shorter routes around the critical path
d. completing the backward pass first
73. A basic Gantt chart _
a. clearly displays early and late start and finish times for all
activities
b. cannot be used to track the project's progress
c. permits scheduling resources well before they are needed
d. shows dummy activities to preserve network logic
16
shapeType75fBehindDocument1pWrapPolygonVertices8;4;(214

10. 98,0);(0,0);(0,21500);(21498,21500)posrelh0posrelv0pib
G:hen choosing the most viable solution to resource conflict
issues, the best option is the
one that .
a. minimizes total network slack
b. minimizes total network schedule disruption
c. maximizes total network slack
d. maximizes activity late start times
8l. A system-wide constraint is called a _
a. rope
b. resource
c. drum
d. chain
82. Successful implementation of CCPM depends on first
_
a. identifying the critical chain that meanders through the
project organization's portfolio
of projects.
b. identifying the constraint that holds hostage the project
organization's other resources
c. examining and changing the culture of the project
organization
d. exploiting the drum by using it to subordinate the existing
PERT network
83. The best method for establ ish i ng the existence of
resource confl icts across project activities
uses _
a. Gantt charts
b. network diagrams
c. Pareto diagrams
d. resource-loading charts
84. A measurement process that determines the project goals
and then the degree to which the
actual performance lives up to these goals is _
a. metric system
b. goal-performance linkage

11. c. five degrees of separation
d. gap analysis
85. Penalty clauses for schedule slippage are sometimes
referred to as _
a. liquidated damages
b. punitive damages
c. temporal assessments
d. late fees
18
shapeType75fBehindDocument1pWrapPolygonVertices8;4;(214
98,0);(0,0);(0,21479);(21498,21479)posrelh0posrelv0pib
Q measurement process that determines the project goals and
then the degree to which the
actual performance lives up to these goals is .
a. metric system
b. goal-performance linkage
c. five degrees of separation
d. gap analysis
92. Earned value management jointly considers the impact
of _
a. time, cost and planned cost
b. project performance, planned performance and cost
c. performance, cost and time
d. planned cost, planned performance and time
93. Which of these concerns does not belong in the assessment
of team performance in a project
final report?
a. Were the stakeholder's concerns addressed?
b. Were the best people in the organization selected to work
on this project?
c. How were our project team members trained for their
duties?
d. Does the project manager have the ability to evaluate
worker performance?
94. A final report section on the techniques of project
management would include an honest

12. assessment of whether the _
a. benefits promised to the client were actually delivered
b. resource costs could be better estimated
c. project workers came together as a team
d. the project finished on time
95. The primary goal in requiring a project final report is
to _
a. formally close-out the project
b. provide the customer with a sense of completion
c. lay the groundwork for successful future projects
d. find out the root cause for all failures, both major and
minor
96. The project final report is fundamentally _
a. a historical record
b. a review of human activity
c. window dressing for the project
d. a forward-Iooki ng docu ment
20