Skip to content
Exam Guides

Test Bank For Contemporary Project Management, 3rd Edition

Don�t just study�study smarter with Test Bank For Contemporary Project Management, 3rd Edition, packed with exam-style questions and detailed answers.

Preview 16 of 134 pages

See the first 16 pages exactly as they appear in the document.

  1. Page 1
    Read page 1 as text

    Chapter 1 - Introduction to Project Management TRUE/FALSE 1. A project is a temporary endeavor undertaken to create a unique product, service or result. ANS: T DIF: Easy REF: P. 4 OBJ: CPMT.KLOP.15.01.01 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Knowledge 2. A project is a lasting endeavor undertaken to maintain a reliable product or service. ANS: F DIF: Easy REF: P. 4 OBJ: CPMT.KLOP.15.01.01 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Comprehension 3. Most projects are conducted with constraints on the amount of time and funding available to the project manager. ANS: T DIF: Moderate REF: P. 10 OBJ: CPMT.KLOP.15.01.01 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Comprehension 4. Project plans and goals usually become more specific as early work is completed. ANS: T DIF: Easy REF: P. 4 OBJ: CPMT.KLOP.15.01.02 NAT: BUSPROG.CPMT.KLOP.15.06 KEY: Bloom's: Knowledge 5. Operations consist of the ongoing work needed to ensure the orga nization continues to function effectively. ANS: T DIF: Easy REF: P. 5 OBJ: CPMT.KLOP.15.01.01 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Knowledge 6. Customers may need to sacrifice expectations related to cost or schedule in order to realize their expectations for scope or quality. ANS: T DIF: Challenging REF: P. 10 OBJ: CPMT.KLOP.15.01.01 NAT: BUSPROG.CPMT.KLOP.15.06 KEY: Bloom's: Analysis 7. An important factor used to determine the phases in a project life cycle are the control needs of the organization(s) involved in the project. ANS: T DIF: Moderate REF: P. 6 OBJ: CPMT.KLOP.15.01.02 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Comprehension 8. Generally, project life cycle stages are designed so that the amount of money spent in each of the stages is nearly equivalent. ANS: F DIF: Moderate REF: P. 6 OBJ: CPMT.KLOP.15.01.02 NAT: BUSPROG.CPMT.KLOP.15.06 KEY: Bloom's: Comprehension 9. Project customers can be either internal or external to the organization. ANS: T DIF: Easy REF: P. 6 OBJ: CPMT.KLOP.15.01.02

  2. Page 2
  3. Page 3
    Read page 3 as text

    NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Knowledge 10. Different project life cycle models are used for different types of projects. ANS: T DIF: Easy REF: P. 6 OBJ: CPMT.KLOP.15.01.02 NAT: BUSPROG.CPMT.KLOP.15.06 KEY: Bloom's: Knowledge 11. All projects go through a common project life cycle that includes four stages: concept, development, production and close - out. ANS: F DIF: Challenging REF: P. 6 OBJ: CPMT.KLOP.15.01.02 NAT: BUSPROG.CPMT.KLOP.15.06 KEY: Bloom's: Analysis 12. The name and number of phases in a project life cycle are determined by the organization(s) involved in the project. ANS: T DIF: Moderate REF: P. 6 OBJ: CPMT.KLOP.15.01.02 NAT: BUSPROG.CPMT.KLOP.15.06 KEY: Bloom's: Application 13. Integration management represents the processes and activities to identify, define, combine, unify and coordinate the various processes and project management activities. ANS: T DIF: Easy REF: P. 9 OBJ: CPMT.KLOP.15.01.03 NAT: BUSPROG.CPMT.KLOP.15.06 KEY: Bloom's: Knowledge 14. Scope management includes the processes to manage timely completion of the project. ANS: F DIF: Moderate REF: P. 9 OBJ: CPMT.KLOP.15.01.03 NAT: BUSPROG.CPMT.KLOP.15.06 KEY: Bloom's: Application 15. Communications management generally entails the processes that organize, manage, and lead the project team. ANS: F DIF: Moderate REF: P. 9 OBJ: CPMT.KLOP.15.01.03 NAT: BUSPROG.CPMT.KLOP.15.06 KEY: Bloom's: Application 16. Stakeholder management is comprised of the processes to identify the people, groups, or organizations that could impact or be impacted by the project, analyze their expectations and impact, and developing strategies for engaging them and managing conflicting interests. ANS: T DIF: Easy REF: P. 9 OBJ: CPMT.KLOP.15.01.03 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Knowledge 17. 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: T DIF: Easy REF: P. 9 OBJ: CPMT.KLOP.15.01.03 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Knowledge 18. The most critical measures of project success are completing the project on schedule and on budget. ANS: F DIF: Challenging REF: P. 11 OBJ: CPMT.KLOP.15.01.04 NAT: BUSPROG.CPMT.KLOP.15.06 KEY: Bloom's: Analysis

  4. Page 4
    Read page 4 as text

    19. Some projects are considered successful if they reap business benefits like increased profitability, even if completed late or over budget. ANS: T DIF: Challenging REF: P. 11 OBJ: CPMT.KLOP.15.01.04 NAT: BUSPROG.CPMT.KLOP.15.06 KEY: Bloom's: Analysis 20. In reality, many projects are fully successful in some ways, but less successful in others. ANS: T DIF: Challenging REF: P. 11 OBJ: CPMT.KLOP.15.01.04 NAT: BUSPROG.CPMT.KLOP.15.06 KEY: Bloom's: Analysis 21. In agile projects, the customer representative role is passive, and their involvement is typically limited to the early stages of the project. ANS: F DIF: Moderate REF: P. 14 OBJ: CPMT.KLOP.15.01.05 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Application 22. The project manager is normally directly accountable for the project results, schedule and budget. ANS: T DIF: Easy REF: P. 14 OBJ: CPMT.KLOP.15.01.06 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Comprehension 23. The project management office (PMO) is typically the person or group that provides the financial resources and support for the project, and is accountable for enabling success. ANS: F DIF: Moderate REF: P. 14 OBJ: CPMT.KLOP.15.01.06 NAT: BUSPROG.CPMT.KLOP.15.06 KEY: Bloom's: Application MULTIPLE CHOICE 1. Which of the following examples is NOT a typical or appropriate situation to employ project management? a. improving an existing work process b. installing a new computer system c. conducting a routine, standard customer service operation d. developing a new product ANS: C DIF: Moderate REF: P. 5 OBJ: CPMT.KLOP.15.01.01 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Application 2. Which of the following examples is NOT a typical or appropriate situation to employ project management? a. improving a soldering process in an assembly line b. processing deposits and withdrawals in a bank c. installing a new accounting application on to a server d. developing a new medical device for use by clinics ANS: B DIF: Moderate REF: P. 5 OBJ: CPMT.KLOP.15.01.01 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Application 3. All of the following factors have influenced the increased reliance upon project management in recent years EXCEPT:

  5. Page 5
    Read page 5 as text

    . rapid growth and changes in the information technology and telecommunications industries b. realization that methods for large projects can be modified and used for small projects c. increased international competition and its influence on consumer demands d. the decreased demands of ongoing operational work ANS: D DIF: Easy REF: P. 5 OBJ: CPMT.KLOP.15.01.01 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Comprehension 4. Projects often require tradeoffs among all of the following EXCEPT: a. scope b. cost c. schedule d. programs ANS: D DIF: Easy REF: P. 10 OBJ: CPMT.KLOP.15.01.01 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Comprehension 5. Once projects are completed, they will typically yield all of the following results EXCEPT: a. a unique product, service or result b. make or buy decisions c. stakeholders whose interests are affected by the outcome d. a primary deliverable along with supporting deliverables ANS: B DIF: Moderate REF: P. 4 OBJ: CPMT.KLOP.15.01.01 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Application 6. 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: C DIF: Moderate REF: P. 7 OBJ: CPMT.KLOP.15.01.05 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Application 7. 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: A DIF: Moderate REF: P. 4 OBJ: CPMT.KLOP.15.01.01 NAT: BUSPROG.CPMT.KLOP.15.06 KEY: Bloom's: Comprehension 8. 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 that includes initiating, planning, executing and closing. b. The project life cycle is the same regardless of the type of projects managed by an organization.

  6. Page 6
    Read page 6 as text

    c. Many different project life cycle models are used, for different types of projects. d. All project life cycles are the same across every industry ANS: C DIF: Moderate REF: P. 6 OBJ: CPMT.KLOP.15.01.02 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Comprehension 9. In the PMBOK, the five logical groupings of the project management inputs, tools and techniques, and outputs are called the: a. project management knowledge areas b. project management process groups c. life cycle stages d. phases and gates ANS: B DIF: Challenging REF: P. 9 OBJ: CPMT.KLOP.15.01.03 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Analysis 10. When applied to project management, the human resource management knowledge area typically involves which of the following activities? a. determining the work necessary for project completion b. estimating, budgeting and controlling project costs c. identifying, analyzing and controlling project risks d. organizing, managing and leading the project team ANS: D DIF: Easy REF: P. 9 OBJ: CPMT.KLOP.15.01.03 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Knowledge 11. Which of the ten knowledge areas defined in the Project Management Body of Knowledge includes the processes required to ensure that the project includes all the work required, and only the work required, to complete the project successfully? a. Project scope management b. Project quality management c. Project communications management d. Project stakeholder management ANS: A DIF: Easy REF: P. 9 OBJ: CPMT.KLOP.15.01.03 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Knowledge 12. Which of the ten knowledge areas defined in the Project Management Body of Knowledge includes the activities of purchasing or acquiring products, services or results from outside the project team? a. Scope management b. Quality management c. Communications management d. Procurement management ANS: D DIF: Easy REF: P. 9 OBJ: CPMT.KLOP.15.01.03 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Knowledge 13. Achieving project success is determined by all of the following EXCEPT: a. creating deliverables that include all required features b. involving only important key stakeholders c. completing the project on schedule and on budget d. providing outputs that please the project’s customers

  7. Page 7
    Read page 7 as text

    ANS: B DIF: Challenging REF: P. 9 OBJ: CPMT.KLOP.15.01.04 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Analysis 14. 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 objectives d. the organization reaps business level benefits. ANS: C DIF: Moderate REF: P. 11 OBJ: CPMT.KLOP.15.01.04 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Application 15. Which of the following actions will likely cause a project to fail? a. dedicating valuable team member time to identify risk events b. spending project funding to procure needed tools and spare parts c. unclear or conflicting stakeholder expectations d. conducting a project audit to evaluate performance ANS: C DIF: Moderate REF: P. 12 OBJ: CPMT.KLOP.15.01.04 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Application 16. Project failure can result from all of the following causes EXCEPT: a. support of senior management b. 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: A DIF: Moderate REF: P. 12 OBJ: CPMT.KLOP.15.01.04 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Comprehension 17. A project manager in agile projects who serves and leads in a collaborative, facilitation manner is called a: a. program manager b. scrum master c. sponsor d. functional manager ANS: B DIF: Easy REF: P. 15 OBJ: CPMT.KLOP.15.01.06 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Knowledge 18. Typically, a steering team or leadership team is responsible for all of the following project related roles EXCEPT: a. selecting, prioritizing and resourcing projects b. providing rigid policies, procedures, standards and guidelines c. ensuring accurate progress is reported and adjustments made d. aligning projects with the organization’s strategic plans ANS: B DIF: Moderate REF: P. 14 OBJ: CPMT.KLOP.15.01.06 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's:Comprehension

  8. Page 8
    Read page 8 as text

    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 for achieving the project objectives b. the person with management authority over a unit within a functional organization c. the person responsible for project methods, standards and training d. the person responsible for providing the financial resources and support for the project and is accountable for enabling success. ANS: A DIF: Moderate REF: P. 14? OBJ: CPMT.KLOP.15.01.06 NAT: BUSPROG.CPMT.KLOP.15.06 KEY: Bloom's: Application 20. Typically, the senior customer represent ative is responsible for which of the following project roles? a. develops the project schedule and budget b. determines how the project work will be accomplished c. ensures the needs of the customer’s organization are identified and prioritized d. helps the project manager with running meetings and providing status reports ANS: C DIF: Easy REF: P. 14? OBJ: CPMT.KLOP.15.01.06 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Knowledge 21. From an agile project management perspective, which of these constraints are considered to be fixed? a. Quality and value c. Scope and time b. Resources and schedule d. Customer satisfaction ANS: B DIF: Moderate REF: P. 11 OBJ: CPMT.KLOP.15.01.05 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Comprehension ESSAY 1. Contrast project management with operations management. How do these differences impact the approach 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 using checklists to guide operational work. Project - Temporary; unique - management of a project entails gathering requirements and creating a project plan. Using a checklist is not sufficient due to the unique nature of the project. DIF: Moderate REF: P. 5 OBJ: CPMT.KLOP.15.01.01 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Comprehension 2. Project managers frequently face competing constraints. Identify these common constraints and describe 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.

  9. Page 9
    Read page 9 as text

    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 needs to 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 will need 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: Challenging REF: P. 4, pp. 10 - 11 OBJ: CPMT.KLOP.15.01.01 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Analysis 3. The Project Management Body of Knowledge (PMBOK® Guide) published by the Project Management Institute identifies five process groups. Briefly identify and describe each of these five process groups. ANS: Key concepts to be covered in the response include: A project management process group is a “logical grouping of th e project management inputs, tools and techniques, and outputs.” The five process groups defined in the PMBOK Guide are: Initiating: Define the project or new phase and obtain authorization Planning: 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 changes required, and initiate changes. Closing: Finalize all activities to formally close a project or phase. DIF: Moderate REF: P. 9 OBJ: CPMT.KLOP.15.01.01 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Comprehension 4. Compare and contrast predictive, or plan - driven project life cycles with agile, or change - driven life cycles. 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 detailed planning 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 prior to project execution. The plan is developed iteratively and incrementally. Iterations are very rapid and are fixed in time and cost. Early results lead into planning later work. DIF: Moderate REF: P. 7 OBJ: CPMT.KLOP.15.01.05 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Comprehension 5. The leadership of top management is often cited as a factor that is critical to project success. Describe the key project related activities of the steering team, chief projects officer and sponsor.

  10. Page 10
    Read page 10 as text

    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 the project progresses, they also ensure that accurate progress is reported and adjustments made as necessary. 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 facilitates the sharing of resources, methodologies, tools and techniques.” The role of the PMO can range from supporting project managers, to controlling them by managing projects directly. Sponsor - PMI’s definition is that a sponsor is “the person or group that pro vides resources and support for the project and is accountable for enabling success.” This person takes an active role in chartering the project, reviewing progress, mentoring, and assisting the project manager throughout the project. DIF: Moderate REF: P. 14 OBJ: CPMT.KLOP.15.01.06 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Comprehension

  11. Page 11
    Read page 11 as text

    Chapter 2 - Project Selection and Prioritization TRUE/FALSE 1. Strategic analysis is an important first step in setting strategic direction. ANS: T DIF: Easy REF: P. 28 OBJ: CPMT.KLOP.15.02.01 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Knowledge 2. Strategic analysis is often called SWOT - Strengths, Weaknesses, Opportunities and Threats (SWOT). ANS: T DIF: Easy REF: P. 28 OBJ: CPMT.KLOP.15.02.01 NAT: BUSPROG: CPMT.KLOP.15.03 KEY: Bloom's: Knowledge 3. Strategic analysis is often called SWOT - Start With Objectives Template (SWOT). ANS: F DIF: Moderate REF: P.28 OBJ: CPMT.KLOP.15.02.01 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Comprehension 4. The internal part of strategic analysis considers opportunities and threats posed by competitors, suppliers and regulatory agencies among others. ANS: F DIF: Moderate REF: P. 28 OBJ: CPMT.KLOP.15.02.01 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Comprehension 5. The organization’ s leadership should establish guiding principles such as the vision and mission for an organization before developing strategic objectives. ANS: T DIF: Moderate REF: P. 28 OBJ: CPMT.KLOP.15.02.01 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Comprehension 6. The organization’s leadership should establish the strategic objectives to set the stage for the strategic analysis. ANS: F DIF: Challenging REF: P. 31 OBJ: CPMT.KLOP.15.02.01 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Blooms: Application 7. The vision should present a positive, inspiring and vivid description of the organization as it currently exists. ANS: F DIF: Moderate REF: P. 29 OBJ: CPMT.KLOP.15.02.01 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Comprehension 8. Strategic objectives should focus decisions regarding which projects to select and how to prioritize them. ANS: T DIF: Moderate REF: P. 31 OBJ: CPMT.KLOP.15.02.03 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Comprehension 9. Strategic objectives describe both long and short term results that are desired, along with measures to determine their achievement.

  12. Page 12
    Read page 12 as text

    ANS: T DIF: Easy REF: P. 31 OBJ: CPMT.KLOP.15.02.03 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Knowledge 10. Projects tend to be the primary method for implementing many objectives. ANS: T DIF: Moderate REF: P. 31, 33 OBJ: CPMT.KLOP.15.02.01 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Comprehension 11. A portfolio is a collection of projects, programs, subportfolios, and operations managed as a group to achieve strategic business objectives. ANS: T DIF: Easy REF: P. 32 OBJ: CPMT.KLOP.15.02.03 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Knowledge 12. A project portfolio is a useful storage medium that enables the project manager to consolidate all project information in a single, convenient location. ANS: F DIF: Moderate REF: P. 32 OBJ: CPMT.KLOP.15.02.03 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Comprehension 13. Portfolio management aligns with organizational strategies by selecting the right projects, prioritizing work, and providing needed resources. ANS: T DIF: Easy REF: P. 31 OBJ: CPMT.KLOP.15.02.03 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Knowledge 14. If an organization does not have the right capabilities, a project may be too difficult to complete successfully. ANS: T DIF: Moderate REF: P. 34 OBJ: CPMT.KLOP.15.02.03 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Comprehension 15. The degree of formality used in selecting projects varies widely across organizations. ANS: T DIF: Moderate REF: P. 31 OBJ: CPMT.KLOP.15.02.03 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Comprehension 16. While there is a wide variety of projects across organizations, the degree of formality used in selecting them is largely uniform. ANS: F DIF: Moderate REF: P. 35 OBJ: CPMT.KLOP.15.02.03 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Comprehension 17. The prioritization of projects in a portfolio should consider whether the demands of performing each project are clearly understood. ANS: T DIF: Moderate REF: P. 36 OBJ: CPMT.KLOP.15.02.03 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Comprehension 18. Payback period models do not consider the amount of profit that may be realized after the costs are paid. ANS: T DIF: Moderate REF: P. 37 OBJ: CPMT.KLOP.15.02.02 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Comprehension

  13. Page 13
    Read page 13 as text

    19. None of the financial project selection models ensure alignment of the project with an organization’s strategic goals. ANS: T DIF: Moderate REF: P. 38 OBJ: CPMT.KLOP.15.02.02 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Comprehension 20. Scoring models are most useful when there are multiple projects and several criteria to consider. ANS: T DIF: Easy REF: P. 38 OBJ: CPMT.KLOP.15.02.04 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Knowledge 21. Traditional financial models are most useful when there are multiple projects and several criteria to consider. ANS: F DIF: Moderate REF: P. 38 OBJ: CPMT.KLOP.15.02.04 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Comprehension 22. There are times that certain projects must be selected regardless of any considerations such as strategic fit, profitability or probability of success. ANS: T DIF: Moderate REF: P. 38 OBJ: CPMT.KLOP.15.02.03 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Comprehension 23. In addition to considering financial factors, project selection should often consider how well each project fits with the organization’s strategic planning. ANS: T DIF: Easy REF: P. 38 OBJ: CPMT.KLOP.15.02.04 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Comprehension 24. Scoring models are very useful in providing input regarding the starting order of projects. ANS: T DIF: Easy REF: P. 40 OBJ: CPMT.KLOP.15.02.04 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Knowledge 25. Project selection scoring models are very useful in providing performance data that can be used to terminate a project. ANS: F DIF: Challenging REF: P. 38 OBJ: CPMT.KLOP.15.02.04 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Application 26. When a firm prepares to submit a proposal, it is really conducting a small project with the primary deliverable of the project being a compelling and complete proposal. ANS: T DIF: Easy REF: P. 43 OBJ: CPMT.KLOP.15.02.05 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Knowledge 27. When a client company decides to engage an external contractor to perform project work, it must be prepared to submit a proposal and prepare a bid. ANS: F DIF: Challenging REF: P. 43 OBJ: CPMT.KLOP.15.02.05 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Application

  14. Page 14
    Read page 14 as text

    MULTIPLE CHOICE 1. 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: D DIF: Moderate REF: P. 28 OBJ: CPMT.KLOP.15.02.01 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Comprehension 2. All of the following factors influence the opportunities and threats an organization must consider when performing a strategic analysis EXCEPT: a. competitors b. suppliers c. regulatory agencies d. employees ANS: D DIF: Easy REF: P. 28 OBJ: CPMT.KLOP.15.02.01 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Knowledge 3. 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 project d. helps stakeholders to understand the direction of the firm. ANS: C DIF: Moderate REF: P. 29 OBJ: CPMT.KLOP.15.02.01 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Comprehension 4. Which of the following responses most accurately depicts the correct sequence of activities in the strategic planning process? a. strategic objectives - strategic analysis - guiding principles - flow - down objectives b. guiding principles - strategic analysis - strategic objectives - flow - down objectives c. strategic analysis - guiding principles - strategic objectives - flow - down objectives d. guiding principles - strategic objectives - flow - down objectives - strategic analysis ANS: C DIF: Challenging REF: P. 28 - 31 OBJ: CPMT.KLOP.15.02.01 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Application 5. Many writers have stated that effective objectives should be: a. broad - to cover many dimensions of the business b. measurable - to track progress c. unachievable - to inspire maximum performance d. resource based - to focus on the inputs ANS: B DIF: Moderate REF: P. 31 OBJ: CPMT.KLOP.15.02.01 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Comprehension 6. All of the following statements concerning project portfolios are true EXCEPT:

  15. Page 15
    Read page 15 as text

    . 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: B DIF: Moderate REF: P. 32 OBJ: CPMT.KLOP.15.02.01 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Comprehension 7. Portfolios deal with all of an organization’s projects, while programs deal with: a. ongoing operations b. a specific group of related projects c. resource availability d. tradeoffs between schedule, scope and quality ANS: B DIF: Moderate REF: P. 32 OBJ: CPMT.KLOP.15.02.01 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Comprehension 8. Portfolio management helps an organization achieve its strategic goals in all of the following ways EXCEPT: a. managing ongoing projects b. providing needed resources c. selecting the right projects d. prioritizing work to be done ANS: A DIF: Moderate REF: P.31 OBJ: CPMT.KLOP.15.02.01 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Comprehension 9. The document that describes why the project is needed, and may include estimated costs and benefits, is called a: a. program management plan b. business case c. SWOT analysis d. guiding principle ANS: B DIF: Moderate REF: P. 35 OBJ: CPMT.KLOP.15.02.03 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Comprehension 10. All of the following factors should be assessed to determine an organization’s ability to perform projects EXCEPT: a. Does the organization have free and open communication, creativity, and empowered decision 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: C DIF: Moderate REF: P. 34 OBJ: CPMT.KLOP.15.02.03 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Comprehension 11. All of the following represent appropriate sources to identify new potential projects EXCEPT: a. existing and potential customers b. the operations staff within the organization

  16. Page 16
    Read page 16 as text

    c. industry and trade journals d. lessons learned from previous projects ANS: D DIF: Moderate REF: P. 35 OBJ: CPMT.KLOP.15.02.03 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Comprehension 12. Which of the following statements best describes the contemporary use of financial models and scoring models for project selection? a. These methods are often used together to ensure financial and non - financial factors are both considered. b. Financial methods are preferred because they ensure alignment with the organization’s strategic goals. c. Scoring models are unreliable because they fail to consider financial factors. d. One of these techniq ues is typically used to the exclusion of the other, due to time demands. ANS: A DIF: Moderate REF: P. 36 OBJ: CPMT.KLOP.15.02.03 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Application 13. Which of the following statements correctly describes a weakness associated with the financial project selection model? a. The benefit - to - cost models favor projects which generate the smallest absolute return over a specified period. b. Payba ck 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 has conventional cash flows. ANS: B DIF: Challenging REF: P. 37 OBJ: CPMT.KLOP.15.02.02 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Application 14. All of the following criteria serve as a valid basis for identifying potential projects in most organizations EXCEPT: a. social need b. environmental considerations c. technological advances d. internal politics ANS: D DIF: Easy REF: P. 35 OBJ: CPMT.KLOP.15.02.03 NAT: BUSPROG.CPMT.KLOP.15.03 KEY: Bloom's: Knowledge Criteria: Weight: Project Strategic Fit 10 Risk 6 Market Potential 7 Probability of Success 5 Weighted Total Score Project A 5 50 3 18 3 21 3 15 104 3 4 5 4

118 more pages in the full document

Unlock it once and it stays in your library, ready to chat with or turn into flashcards.

Unlock the full document

More Business Management study materials

See all

Study this document with CramX

Once it is in your library, every tool can work from it.