Test Bank For Contemporary Project Management, 3rd Edition

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Chapter 1-Introduction to Project ManagementTRUE/FALSE1.A project is a temporary endeavor undertaken to create a unique product, service or result.ANS:TDIF:EasyREF:P. 4OBJ:CPMT.KLOP.15.01.01NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Knowledge2.A project is a lasting endeavor undertaken to maintain a reliable product or service.ANS:FDIF:EasyREF:P. 4OBJ:CPMT.KLOP.15.01.01NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Comprehension3.Most projects are conducted with constraints on the amount of time and funding available to theproject manager.ANS:TDIF:ModerateREF:P. 10OBJ:CPMT.KLOP.15.01.01NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Comprehension4.Project plans and goals usually become more specific as early work is completed.ANS:TDIF:EasyREF:P. 4OBJ:CPMT.KLOP.15.01.02NAT:BUSPROG.CPMT.KLOP.15.06KEY:Bloom's: Knowledge5.Operations consist of the ongoing work needed to ensure the organization continues to functioneffectively.ANS:TDIF:EasyREF:P. 5OBJ:CPMT.KLOP.15.01.01NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Knowledge6.Customers may need to sacrifice expectations related to cost or schedule in order to realize theirexpectations for scope or quality.ANS:TDIF:ChallengingREF:P. 10OBJ:CPMT.KLOP.15.01.01NAT:BUSPROG.CPMT.KLOP.15.06KEY:Bloom's: Analysis7.An important factor used to determine the phases in a project life cycle are the control needs of theorganization(s) involved in the project.ANS:TDIF:ModerateREF:P. 6OBJ:CPMT.KLOP.15.01.02NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Comprehension8.Generally, project life cycle stages are designed so that the amount of money spent in each of thestages is nearly equivalent.ANS:FDIF:ModerateREF:P. 6OBJ:CPMT.KLOP.15.01.02NAT:BUSPROG.CPMT.KLOP.15.06KEY:Bloom's: Comprehension9.Project customers can be either internal or external to the organization.ANS:TDIF:EasyREF:P. 6OBJ:CPMT.KLOP.15.01.02

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NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Knowledge10.Different project life cycle models are used for different types of projects.ANS:TDIF:EasyREF:P. 6OBJ:CPMT.KLOP.15.01.02NAT:BUSPROG.CPMT.KLOP.15.06KEY:Bloom's: Knowledge11.All projects go through a common project life cycle that includes four stages: concept, development,production and close-out.ANS:FDIF:ChallengingREF:P. 6OBJ:CPMT.KLOP.15.01.02NAT:BUSPROG.CPMT.KLOP.15.06KEY:Bloom's: Analysis12.The name and number of phases in a project life cycle are determined by the organization(s) involvedin the project.ANS:TDIF:ModerateREF:P. 6OBJ:CPMT.KLOP.15.01.02NAT:BUSPROG.CPMT.KLOP.15.06KEY:Bloom's: Application13.Integration management represents the processes and activities to identify, define, combine, unify andcoordinate the various processes and project management activities.ANS:TDIF:EasyREF:P. 9OBJ:CPMT.KLOP.15.01.03NAT:BUSPROG.CPMT.KLOP.15.06KEY:Bloom's: Knowledge14.Scope management includes the processes to manage timely completion of the project.ANS:FDIF:ModerateREF:P. 9OBJ:CPMT.KLOP.15.01.03NAT:BUSPROG.CPMT.KLOP.15.06KEY:Bloom's: Application15.Communications management generally entails the processes that organize, manage, and lead theproject team.ANS:FDIF:ModerateREF:P. 9OBJ:CPMT.KLOP.15.01.03NAT:BUSPROG.CPMT.KLOP.15.06KEY:Bloom's: Application16.Stakeholder management is comprised of the processes to identify the people, groups, or organizationsthat could impact or be impacted by the project, analyze their expectations and impact, and developingstrategies for engaging them and managing conflicting interests.ANS:TDIF:EasyREF:P. 9OBJ:CPMT.KLOP.15.01.03NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Knowledge17.Cost management processes are involved in planning, estimating, budgeting,m financing, funding,managing and controlling costs so that the project can be completed within the approved budget.ANS:TDIF:EasyREF:P. 9OBJ:CPMT.KLOP.15.01.03NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Knowledge18.The most critical measures of project success are completing the project on schedule and on budget.ANS:FDIF:ChallengingREF:P. 11OBJ:CPMT.KLOP.15.01.04NAT:BUSPROG.CPMT.KLOP.15.06KEY:Bloom's: Analysis

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19.Some projects are considered successful if they reap business benefits like increased profitability, evenif completed late or over budget.ANS:TDIF:ChallengingREF:P. 11OBJ:CPMT.KLOP.15.01.04NAT:BUSPROG.CPMT.KLOP.15.06KEY:Bloom's: Analysis20.In reality, many projects are fully successful in some ways, but less successful in others.ANS:TDIF:ChallengingREF:P. 11OBJ:CPMT.KLOP.15.01.04NAT:BUSPROG.CPMT.KLOP.15.06KEY:Bloom's: Analysis21.In agile projects, the customer representative role is passive, and their involvement is typically limitedto the early stages of the project.ANS:FDIF:ModerateREF:P. 14OBJ:CPMT.KLOP.15.01.05NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Application22.The project manager is normally directly accountable for the project results, schedule and budget.ANS:TDIF:EasyREF:P. 14OBJ:CPMT.KLOP.15.01.06NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Comprehension23.The project management office (PMO) is typically the person or group that provides the financialresources and support for the project, and is accountable for enabling success.ANS:FDIF:ModerateREF:P. 14OBJ:CPMT.KLOP.15.01.06NAT:BUSPROG.CPMT.KLOP.15.06KEY:Bloom's: ApplicationMULTIPLE CHOICE1.Which of the following examples isNOTa typical or appropriate situation to employ projectmanagement?a.improving an existing work processb.installing a new computer systemc.conducting a routine, standard customer service operationd.developing a new productANS:CDIF:ModerateREF:P. 5OBJ:CPMT.KLOP.15.01.01NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Application2.Which of the following examples isNOTa typical or appropriate situation to employ projectmanagement?a.improving a soldering process in an assembly lineb.processing deposits and withdrawals in a bankc.installing a new accounting application on to a serverd.developing a new medical device for use by clinicsANS:BDIF:ModerateREF:P. 5OBJ:CPMT.KLOP.15.01.01NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Application3.All of the following factors have influenced the increased reliance upon project management in recentyears EXCEPT:

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.rapid growth and changes in the information technology and telecommunicationsindustriesb.realization that methods for large projects can be modified and used for small projectsc.increased international competition and its influence on consumer demandsd.the decreased demands of ongoing operational workANS:DDIF:EasyREF:P. 5OBJ:CPMT.KLOP.15.01.01NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Comprehension4.Projects often require tradeoffs among all of the following EXCEPT:a.scopeb.costc.scheduled.programsANS:DDIF:EasyREF:P. 10OBJ:CPMT.KLOP.15.01.01NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Comprehension5.Once projects are completed, they will typically yield all of the following results EXCEPT:a.a unique product, service or resultb.make or buy decisionsc.stakeholders whose interests are affected by the outcomed.a primary deliverable along with supporting deliverablesANS:BDIF:ModerateREF:P. 4OBJ:CPMT.KLOP.15.01.01NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Application6.In an adaptive or change-driven project life cycle:a.the product or deliverable is well understood.b.planning precedes all executing.c.early results lead into planning later work.d.the waterfall approach is commonly used.ANS:CDIF:ModerateREF:P. 7OBJ:CPMT.KLOP.15.01.05NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Application7.Which of the following statements correctly describes project management?a.Project management applies knowledge, skills, tools and techniques to project activities.b.Project management should not involve tradeoffs between scope, schedule and cost.c.Project management only relies upon checklists to plan and execute the work.d.Project management’s goal is to maintain efficiency of ongoing operations.ANS:ADIF:ModerateREF:P. 4OBJ:CPMT.KLOP.15.01.01NAT:BUSPROG.CPMT.KLOP.15.06KEY:Bloom's: Comprehension8.Which of the following statements regarding project life cycles is most accurate?a.All research and development organizations rely upon a four-stage project life cycle thatincludes initiating, planning, executing and closing.b.The project life cycle is the same regardless of the type of projects managed by anorganization.

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c.Many different project life cycle models are used, for different types of projects.d.All project life cycles are the same across every industryANS:CDIF:ModerateREF:P. 6OBJ:CPMT.KLOP.15.01.02NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Comprehension9.In the PMBOK, the five logical groupings of the project management inputs, tools and techniques, andoutputs are called the:a.project management knowledge areasb.project management process groupsc.life cycle stagesd.phases and gatesANS:BDIF:ChallengingREF:P. 9OBJ:CPMT.KLOP.15.01.03NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Analysis10.When applied to project management, the human resource management knowledge area typicallyinvolves which of the following activities?a.determining the work necessary for project completionb.estimating, budgeting and controlling project costsc.identifying, analyzing and controlling project risksd.organizing, managing and leading the project teamANS:DDIF:EasyREF:P. 9OBJ:CPMT.KLOP.15.01.03NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Knowledge11.Which of the ten knowledge areas defined in the Project Management Body of Knowledge includesthe processes required to ensure that the project includes all the work required, and only the workrequired, to complete the project successfully?a.Project scope managementb.Project quality managementc.Project communications managementd.Project stakeholder managementANS:ADIF:EasyREF:P. 9OBJ:CPMT.KLOP.15.01.03NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Knowledge12.Which of the ten knowledge areas defined in the Project Management Body of Knowledge includesthe activities of purchasing or acquiring products, services or results from outside the project team?a.Scope managementb.Quality managementc.Communications managementd.Procurement managementANS:DDIF:EasyREF:P. 9OBJ:CPMT.KLOP.15.01.03NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Knowledge13.Achieving project success is determined by all of the following EXCEPT:a.creating deliverables that include all required featuresb.involving only important key stakeholdersc.completing the project on schedule and on budgetd.providing outputs that please the project’s customers

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ANS:BDIF:ChallengingREF:P. 9OBJ:CPMT.KLOP.15.01.04NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Analysis14.Projects are considered successful for all of the reasons below EXCEPT:..a.members of the team learn new skills working on the project.b.the organization captures lessons learned for future projects.c.the team has demonstrated heroics to meet project objectivesd.the organization reaps business level benefits.ANS:CDIF:ModerateREF:P. 11OBJ:CPMT.KLOP.15.01.04NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Application15.Which of the following actions will likely cause a project to fail?a.dedicating valuable team member time to identify risk eventsb.spending project funding to procure needed tools and spare partsc.unclear or conflicting stakeholder expectationsd.conducting a project audit to evaluate performanceANS:CDIF:ModerateREF:P. 12OBJ:CPMT.KLOP.15.01.04NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Application16.Project failure can result from all of the following causes EXCEPT:a.support of senior managementb.changes in scope are not agreed upon by all parties involved.c.too little time is allowed for project completion.d.planning is not adequate.ANS:ADIF:ModerateREF:P. 12OBJ:CPMT.KLOP.15.01.04NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Comprehension17.A project manager in agile projects who serves and leads in a collaborative, facilitation manner iscalled a:a.program managerb.scrum masterc.sponsord.functional managerANS:BDIF:EasyREF:P. 15OBJ:CPMT.KLOP.15.01.06NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Knowledge18.Typically, a steering team or leadership team is responsible for all of the following project related rolesEXCEPT:a.selecting, prioritizing and resourcing projectsb.providing rigid policies, procedures, standards and guidelinesc.ensuring accurate progress is reported and adjustments maded.aligning projects with the organization’s strategic plansANS:BDIF:ModerateREF:P. 14OBJ:CPMT.KLOP.15.01.06NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's:Comprehension

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19.Which of the following roles is typically associated with the project manager?a.the person assigned by the performing organization to lead the team that is responsible forachieving the project objectivesb.the person with management authority over a unit within a functional organizationc.the person responsible for project methods, standards and trainingd.the person responsible for providing the financial resources and support for the project andis accountable for enabling success.ANS:ADIF:ModerateREF:P. 14?OBJ:CPMT.KLOP.15.01.06NAT:BUSPROG.CPMT.KLOP.15.06KEY:Bloom's: Application20.Typically, the senior customer representative is responsible for which of the following project roles?a.develops the project schedule and budgetb.determines how the project work will be accomplishedc.ensures the needs of the customer’s organization are identified and prioritizedd.helps the project manager with running meetings and providing status reportsANS:CDIF:EasyREF:P. 14?OBJ:CPMT.KLOP.15.01.06NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Knowledge21.From an agile project management perspective, which of these constraints are considered to be fixed?a.Quality and valuec.Scope and timeb.Resources and scheduled.Customer satisfactionANS:BDIF:ModerateREF:P. 11OBJ:CPMT.KLOP.15.01.05NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: ComprehensionESSAY1.Contrast project management with operations management.How do these differences impact theapproach required to manage a project successfully?ANS:Key concepts to be covered in the response include:Operations-Ongoing; continuous; repetitive process-Management approach can include usingchecklists to guide operational work.Project-Temporary; unique-management of a project entails gathering requirements and creating aproject plan.Using a checklist is not sufficient due to the unique nature of the project.DIF:ModerateREF:P. 5OBJ:CPMT.KLOP.15.01.01NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Comprehension2.Project managers frequently face competing constraints.Identify these common constraints anddescribe approaches that project managers can use to make the trade-offs required to succeed.ANS:Key concepts to be covered in the response include:Project constraints are: scope, schedule, cost, quality, resources, and risks.

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During management of a project, tradeoffs must be made between these factors.From a client perspective, projects typically have time and cost constraints, so a project manager needsto be concerned with achieving desired scope and quality, subject to the constraints of time and cost.As a project is conducted, many opportunities and challenges may occur.The project manager willneed to understand which of these four constraints must take precedence, and which may be sacrificed.Understanding the customer’s desires will help the project manager to make a good decision.DIF:ChallengingREF:P. 4, pp. 10-11OBJ:CPMT.KLOP.15.01.01NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Analysis3.The Project Management Body of Knowledge (PMBOK® Guide) published by the ProjectManagement Institute identifies five process groups.Briefly identify and describe each of these fiveprocess groups.ANS:Key concepts to be covered in the response include:A project management process group is a “logical grouping of the project management inputs, toolsand techniques, and outputs.”The five process groups defined in the PMBOK Guide are:Initiating: Define the project or new phase and obtain authorizationPlanning: Establish scope, refine objectives and define actions to attain objectives.Executing: Complete the work defined to satisfy project specifications.Monitoring and controlling: Track, review and regulate progress and performance, identify changesrequired, and initiate changes.Closing: Finalize all activities to formally close a project or phase.DIF:ModerateREF:P. 9OBJ:CPMT.KLOP.15.01.01NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Comprehension4.Compare and contrast predictive, or plan-driven project life cycles with agile, or change-driven lifecycles.When might each type of life cycle be appropriate?ANS:Key concepts to be covered in the response include:In a predictive or plan-driven life cycle, the product is well understood. There is a single detailedplanning phase that is completed prior to project execution.In an adaptive or change-driven project life cycle, a single detailed project plan is not completed priorto project execution.The plan is developed iteratively and incrementally.Iterations are very rapidand are fixed in time and cost.Early results lead into planning later work.DIF:ModerateREF:P. 7OBJ:CPMT.KLOP.15.01.05NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Comprehension5.The leadership of top management is often cited as a factor that is critical to project success.Describethe key project related activities of the steering team, chief projects officer and sponsor.

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ANS:Key concepts to be covered in the response include:Steering Team-Often comprised of the CEO and direct reports.Responsible for selecting,prioritizing, and resourcing projects in accordance with the organization’s strategic planning.As theproject progresses, they also ensure that accurate progress is reported and adjustments made asnecessary.Chief Projects Officer-This role is sometimes called a project management office (PMO), which is“an organizational structure that standardizes the project related governance processes and facilitatesthe sharing of resources, methodologies, tools and techniques.” The role of the PMO can range fromsupporting project managers, to controlling them by managing projects directly.Sponsor-PMI’s definition is that a sponsor is “the person or group that provides resources andsupport for the project and is accountable for enabling success.”This person takes an active role inchartering the project, reviewing progress, mentoring, and assisting the project manager throughout theproject.DIF:ModerateREF:P. 14OBJ:CPMT.KLOP.15.01.06NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Comprehension

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Chapter 2-Project Selection and PrioritizationTRUE/FALSE1.Strategic analysis is an important first step in setting strategic direction.ANS:TDIF:EasyREF:P. 28OBJ:CPMT.KLOP.15.02.01NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Knowledge2.Strategic analysis is often called SWOT-Strengths, Weaknesses, Opportunities and Threats (SWOT).ANS:TDIF:EasyREF:P. 28OBJ:CPMT.KLOP.15.02.01NAT:BUSPROG: CPMT.KLOP.15.03KEY:Bloom's: Knowledge3.Strategic analysis is often called SWOT-Start With Objectives Template (SWOT).ANS:FDIF:ModerateREF:P.28OBJ:CPMT.KLOP.15.02.01NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Comprehension4.The internal part of strategic analysis considers opportunities and threats posed by competitors,suppliers and regulatory agencies among others.ANS:FDIF:ModerateREF:P. 28OBJ:CPMT.KLOP.15.02.01NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Comprehension5.The organization’s leadership should establish guiding principles such as the vision and mission for anorganization before developing strategic objectives.ANS:TDIF:ModerateREF:P. 28OBJ:CPMT.KLOP.15.02.01NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Comprehension6.The organization’s leadership should establish the strategic objectives to set the stage for the strategicanalysis.ANS:FDIF:ChallengingREF:P. 31OBJ:CPMT.KLOP.15.02.01NAT:BUSPROG.CPMT.KLOP.15.03KEY:Blooms: Application7.The vision should present a positive, inspiring and vivid description of the organization as it currentlyexists.ANS:FDIF:ModerateREF:P. 29OBJ:CPMT.KLOP.15.02.01NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Comprehension8.Strategic objectives should focus decisions regarding which projects to select and how to prioritizethem.ANS:TDIF:ModerateREF:P. 31OBJ:CPMT.KLOP.15.02.03NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Comprehension9.Strategic objectives describe both long and short term results that are desired, along with measures todetermine their achievement.

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ANS:TDIF:EasyREF:P. 31OBJ:CPMT.KLOP.15.02.03NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Knowledge10.Projects tend to be the primary method for implementing many objectives.ANS:TDIF:ModerateREF:P. 31, 33OBJ:CPMT.KLOP.15.02.01NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Comprehension11.Aportfolio is a collection of projects, programs, subportfolios, and operations managed as a group toachieve strategic business objectives.ANS:TDIF:EasyREF:P. 32OBJ:CPMT.KLOP.15.02.03NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Knowledge12.A project portfolio is a useful storage medium that enables the project manager to consolidate allproject information in a single, convenient location.ANS:FDIF:ModerateREF:P. 32OBJ:CPMT.KLOP.15.02.03NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Comprehension13.Portfolio management aligns with organizational strategies by selecting the right projects, prioritizingwork, and providing needed resources.ANS:TDIF:EasyREF:P. 31OBJ:CPMT.KLOP.15.02.03NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Knowledge14.If an organization does not have the right capabilities, a project may be too difficult to completesuccessfully.ANS:TDIF:ModerateREF:P. 34OBJ:CPMT.KLOP.15.02.03NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Comprehension15.The degree of formality used in selecting projects varies widely across organizations.ANS:TDIF:ModerateREF:P. 31OBJ:CPMT.KLOP.15.02.03NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Comprehension16.While there is a wide variety of projects across organizations, the degree of formality used in selectingthem is largely uniform.ANS:FDIF:ModerateREF:P. 35OBJ:CPMT.KLOP.15.02.03NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Comprehension17.The prioritization of projects in a portfolio should consider whether the demands of performing eachproject are clearly understood.ANS:TDIF:ModerateREF:P. 36OBJ:CPMT.KLOP.15.02.03NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Comprehension18.Payback period models do not consider the amount of profit that may be realized after the costs arepaid.ANS:TDIF:ModerateREF:P. 37OBJ:CPMT.KLOP.15.02.02NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Comprehension

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19.None of the financial project selection models ensure alignment of the project with an organization’sstrategic goals.ANS:TDIF:ModerateREF:P. 38OBJ:CPMT.KLOP.15.02.02NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Comprehension20.Scoring models are most useful when there are multiple projects and several criteria to consider.ANS:TDIF:EasyREF:P. 38OBJ:CPMT.KLOP.15.02.04NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Knowledge21.Traditional financial models are most usefulwhen there are multiple projects and several criteria toconsider.ANS:FDIF:ModerateREF:P. 38OBJ:CPMT.KLOP.15.02.04NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Comprehension22.There are times that certain projects must be selected regardless of any considerations such as strategicfit, profitability or probability of success.ANS:TDIF:ModerateREF:P. 38OBJ:CPMT.KLOP.15.02.03NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Comprehension23.In addition to considering financial factors, project selection should often consider how well eachproject fits with the organization’s strategic planning.ANS:TDIF:EasyREF:P. 38OBJ:CPMT.KLOP.15.02.04NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Comprehension24.Scoring models are very useful in providing input regarding the starting order of projects.ANS:TDIF:EasyREF:P. 40OBJ:CPMT.KLOP.15.02.04NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Knowledge25.Project selection scoring models are very useful in providing performance data that can be used toterminate a project.ANS:FDIF:ChallengingREF:P. 38OBJ:CPMT.KLOP.15.02.04NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Application26.When a firm prepares to submit a proposal, it is really conducting a small project with the primarydeliverable of the project being a compelling and complete proposal.ANS:TDIF:EasyREF:P. 43OBJ:CPMT.KLOP.15.02.05NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Knowledge27.When a client company decides to engage an external contractor to perform project work, it must beprepared to submit a proposal and prepare a bid.ANS:FDIF:ChallengingREF:P. 43OBJ:CPMT.KLOP.15.02.05NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Application

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MULTIPLE CHOICE1.Which of the following statements concerning strategic analysis is true?a.Strategic analysis focuses exclusively upon external analysis.b.External analysis focuses on the strengths and weaknesses of the organization.c.Internal analysis focuses on the threats and opportunities facing the organization.d.External analysis focuses on the threats and opportunities facing the organization.ANS:DDIF:ModerateREF:P. 28OBJ:CPMT.KLOP.15.02.01NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Comprehension2.All of the following factors influence the opportunities and threats an organization must consider whenperforming a strategic analysis EXCEPT:a.competitorsb.suppliersc.regulatory agenciesd.employeesANS:DDIF:EasyREF:P. 28OBJ:CPMT.KLOP.15.02.01NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Knowledge3.A clear and compelling vision will have all the following characteristics EXCEPT:a.often requires extra effort to achieve.b.often requires several years to achieve.c.provides detailed roadmap for managing a projectd.helps stakeholders to understand the direction of the firm.ANS:CDIF:ModerateREF:P. 29OBJ:CPMT.KLOP.15.02.01NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Comprehension4.Which of the following responses most accurately depicts the correct sequence of activities in thestrategic planning process?a.strategic objectives-strategic analysis-guiding principles-flow-down objectivesb.guiding principles-strategic analysis-strategic objectives-flow-down objectivesc.strategic analysis-guiding principles-strategic objectives-flow-down objectivesd.guiding principles-strategic objectives-flow-down objectives-strategic analysisANS:CDIF:ChallengingREF:P. 28-31OBJ:CPMT.KLOP.15.02.01NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Application5.Many writers have stated that effective objectives should be:a.broad-to cover many dimensions of the businessb.measurable-to track progressc.unachievable-to inspire maximum performanced.resource based-to focus on the inputsANS:BDIF:ModerateREF:P. 31OBJ:CPMT.KLOP.15.02.01NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Comprehension6.All ofthe following statements concerning project portfolios are true EXCEPT:

Test Bank For Contemporary Project Management, 3rd Edition - Page 15 preview image

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.The projects in a portfolio are grouped to be managed collectively.b.Portfolios cannot include operations and programs.c.Portfolios usually include a mix of high-risk and low-risk projects.d.All projects in a portfolio contribute to the organization’s goals.ANS:BDIF:ModerateREF:P. 32OBJ:CPMT.KLOP.15.02.01NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Comprehension7.Portfolios deal with all of an organization’s projects, while programs deal with:a.ongoing operationsb.a specific group of related projectsc.resource availabilityd.tradeoffs between schedule, scope and qualityANS:BDIF:ModerateREF:P. 32OBJ:CPMT.KLOP.15.02.01NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Comprehension8.Portfolio management helps an organization achieve its strategic goals in all of the following waysEXCEPT:a.managing ongoing projectsb.providing needed resourcesc.selecting the right projectsd.prioritizing work to be doneANS:ADIF:ModerateREF:P.31OBJ:CPMT.KLOP.15.02.01NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Comprehension9.The document that describes why the project is needed, and may include estimated costs and benefits,is called a:a.program management planb.business casec.SWOT analysisd.guiding principleANS:BDIF:ModerateREF:P. 35OBJ:CPMT.KLOP.15.02.03NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Comprehension10.All of the following factors should be assessed to determine an organization’s ability to performprojects EXCEPT:a.Does the organization have free and open communication, creativity, and empowereddecision making?b.Does the organization have a clearly defined project management process?c.Do teams and individuals follow instructions well?d.Does the organization monitor and understand it’s external environment?ANS:CDIF:ModerateREF:P. 34OBJ:CPMT.KLOP.15.02.03NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Comprehension11.All of the following represent appropriate sources to identify new potential projects EXCEPT:a.existing and potential customersb.the operations staff within the organization

Test Bank For Contemporary Project Management, 3rd Edition - Page 16 preview image

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c.industry and trade journalsd.lessons learned from previous projectsANS:DDIF:ModerateREF:P. 35OBJ:CPMT.KLOP.15.02.03NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Comprehension12.Which of the following statements best describes the contemporary use of financial models andscoring models for project selection?a.These methods are often used together to ensure financial and non-financial factors areboth considered.b.Financial methods are preferred because they ensure alignment with the organization’sstrategic goals.c.Scoring models are unreliable because they fail to consider financial factors.d.One of these techniques is typically used to the exclusion of the other, due to timedemands.ANS:ADIF:ModerateREF:P. 36OBJ:CPMT.KLOP.15.02.03NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Application13.Which of the following statements correctly describes a weakness associated with the financial projectselection model?a.The benefit-to-cost models favor projects which generate the smallest absolute return overa specified period.b.Payback period models do not consider the profit to be realized after the costs are paid.c.The Net Present Value (NPV) method does not consider the time value of money.d.The Internal Rate of Return (IRR) method is difficult to use when a project hasconventional cash flows.ANS:BDIF:ChallengingREF:P. 37OBJ:CPMT.KLOP.15.02.02NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: Application14.All of the following criteria serve as a valid basis for identifying potential projects in mostorganizations EXCEPT:a.social needb.environmental considerationsc.technological advancesd.internal politicsANS:DDIF:EasyREF:P. 35OBJ:CPMT.KLOP.15.02.03NAT:BUSPROG.CPMT.KLOP.15.03KEY:Bloom's: KnowledgeCriteria:Weight:ProjectStrategicFit10Risk6MarketPotential7Probabilityof Success5WeightedTotalScoreProject A5503183213151043454

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