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‫‪Professional Responsiblity‬‬
‫‪Chapter-12‬‬

‫‪AA‬‬
 Professional Responsibility

Selected Choice: #
Correct Answer: # 1

Question: In an automobile company in which you are the project manager, the allowable standard deviation for a
product to be delivered by the contractor is less than 0.002 inches. However, product testing has revealed that the
actual deviation is slightly more than 0.002 inches. You believe that the variation from the permissible deviation is
negligible. In this case, you must:

1. Allow the product, since deviation from the company standards is small.
2. Document the low quality level of the product, ask the contractor for an explanation, and find a solution.
3. Reject the product outright.
4. Allow the product this time, but mentor the contractor to be more quality conscious henceforth.

Justification: Any decrease in quality level in the product should be documented and discussed with the
contractor. If there is a slight decrease in the required quality level, rejecting the product outright (option 3) will be an
extreme step. Similarly, approving a product of a lower quality (option 1 and option 4) is also not advisable.

Selected Choice: #
Correct Answer: # 2

Question: Which of the following is not approved by PMI as part of the PMI Code of Ethics and Professional
Conduct?

1. Satisfying scope and objectives of professional services

2. Refusing to accept gifts under any circumstances
3. Maintaining confidentiality of sensitive information
4. Reporting a violation of PMI Code of Ethics and Professional Conduct to PMI

Justification: PMI suggests that one should refrain from offering or accepting inappropriate gifts or other forms of
personal compensation unless the action is in agreement with the laws or customs of the country where project
management services are offered.

Reference: PMstudy.com comments

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Selected Choice: #
Correct Answer: # 2

Question: You recently went on an official trip to another country to discuss a business proposition with a potential
vendor. The vendor took you out for lunch and offered you gifts, as it is customary in that country. You must:

1. Tell the vendor that you cannot accept the gifts as per company policy
2. Accept the gifts as it is a local custom and promptly inform your manager
3. Return the gifts, because accepting them could be interpreted as a personal gain
4. Accept the gifts, as they are not very expensive

Justification: A project manager has the responsibility to refrain from offering or accepting inappropriate
payments, gifts, or other forms of compensation for personal gain, unless it is in agreement with applicable laws or
customs of the country where the project management services are being provided.

Reference: PMI Code of Ethics and Professional Conduct

PMstudy.com comments: In some cultures where offering gifts is a custom, rejecting or returning the gifts may be
considered rude and inappropriate behavior. Appreciation of cultural differences is the way to win the trust of people
from divergent cultures.

Selected Choice: #
Correct Answer: # 3

Question: You recently took over the responsibilities of a project manager from another person. While reviewing
the project cost, you realize there has been an item of $100,000 waiting to be paid, which, you think, is a disputed
item. Your project CPI is 1.2. In this case:

1. Since this is a small amount compared to the total project value, it can be paid ignoring all objections.
2. Since the project CPI is greater than one, you do not have any difficulties with the cost of the project. You can, hence, bury the
payment in contingency account and move on with the project.
3. You should inform your manager and ascertain the facts of the matter before making the payment.
4. You must refuse the payment.

Justification: Option 3 is the best answer because, as a project manager, you are supposed to deal with any issue
or alleged unethical practice and not ignore it.

Option 1 and option 2 ask you to ignore the issue and hence are not recommended. Option 4 is recommended only
after ascertaining the facts of the matter as stated in option 3.

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Selected Choice: #
Correct Answer: # 4

Question: When your project is nearing completion, the customer requests you to include an additional feature in
the final product. You realize that this feature was discussed with the project sponsor in an earlier meeting and he
was against having this feature. What will be the BEST course of action?

1. Include the feature, as it will improve customer satisfaction

2. Include the feature --otherwise, the project will not be accepted by the customer
3. Talk with the sponsor on the benefits of having this feature
4. Decline the customer request and advise her to create a change request

Justification: Option 4 is the best available choice. Neither option 1 nor option 2 is the best answer, because this
requirement was absent in the scope of work, and inclusion of the same now will impact project deliverables.

The issue was already discussed with the sponsor, and he was against having this feature. So, no purpose is served
in referring the matter once again to the sponsor. Hence, option 3 is not the correct choice.

Reference: PMstudy.com comments

Selected Choice: #
Correct Answer: # 3

Question: As a project manager, one of your responsibilities is to manage stakeholder expectations to the best of
your ability. However, if there are conflicts among stakeholders, they should usually be resolved in favor of:

1. Business partner/Project sponsor

2. Team members
3. Customers
4. Stakeholders

Justification: In general, differences among stakeholders should be resolved in favor of the customers.

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Correct Answer: # 2

Question: You notice that the financial statements of the company you joined recently do not conform to generally
accepted accounting practice standards and hence are inaccurate. What should be your next course of action?

1. Inform the government agencies of the inaccurate accounting practices in the company
2. Talk to your finance managers on why you think that they may be violating the standard accounting norms
3. Assume that the accounting standards are different and hence do not want to make an issue out of it, since you are new to the
company
4. Talk to the finance manager in your previous company to get expert opinion on accounting standards of the new company

Justification:
Option 2: This is the best choice, as you are trying to understand and resolve the problem.
Option 1: This is the last option to be preferred after all the other alternatives are exhausted.
Option 3: This avoids the issue.
Option 4: This is not recommended, as you may be compromising proprietary information.

Reference: PMstudy.com comments

Selected Choice: #
Correct Answer: # 2

Question: You are managing a project in a foreign country. You realize that, to get things done for the project, you
may have to pay tips to the government officials. You should:

1. Pay tips to the officials as otherwise they could cause delays

2. Refuse to pay tips, as this can be considered unethical
3. Make a case for payment of tips to government officials and present it to your management
4. Offer gifts instead of paying cash to government officials to get their support

Justification: Options 1, 3, and 4 either suggest or imply payment of bribe, which is unethical and prohibited by
PMI Code of Ethics and Professional Conduct.

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Correct Answer: # 2

Question: Which of the following is not the responsibility of a PMP certificant?

1. Ensuring that there is no conflict of interest that can compromise the legitimate interests of a client or customer
2. Ensuring that technical specifications are appropriately defined
3. Disseminating PMI Code of Ethics and Professional Conduct to other PMI members
4. Cooperating with PMI concerning ethics violation related to PMI and PMP Certification, and the collection of related information

Justification: The project manager need not be a technical expert qualified to determine the accuracy of technical
specifications.

All other responsibilities stated in options 1, 3, and 4 find a place in the PMI Code of Ethics and Professional
Conduct.

Correct Answer: # 2

Question: You had earlier worked as a project manager in a firm specializing in manufacturing semi-conductor
chips. Now that you are working with a competitor,

1. You should not use the knowledge gained in the first company to improve the competitor`s product quality
2. You can use the knowledge gained in the first company to improve your present company`s product quality
3. You should get your first company`s approval before doing anything that may adversely impact them
4. You should do nothing by way of competing with or undermining the products of the first company

Justification: Knowledge gained in one company is not proprietary information and can be used in subsequent
jobs. This is acceptable as long as you do not unethically use any contacts or proprietary information belonging to the
first company.

Options 1, 3, and 4 are inappropriate, because they imply that knowledge and experience gained from the first
company, if used in the present company might adversely impact the former company`s business interests.

Reference: PMstudy.com comments

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Correct Answer: # 3

Question: You are the project manager of a sewage treatment plant. The government has mandated that you
ensure that the neighborhood is not adversely impacted by your project plant. For your project, this directive is
regarded as a/an:

1. Assumption
2. Ethical practice
3. Constraint
4. Deliverable

Justification: From a project management point of view, constraints are factors that will limit the project
management team`s options. Since this is a government mandate, it becomes a constraint for your project.

Correct Answer: # 2

Question: You are the project manager of a construction company planning to build a water treatment plant close
to a residential locality. The project owner and sponsor have obtained all the legal clearances for the project. Some of
the residents of the locality have approached you with concerns on the probable impact of the project on the
environment. In this case, you must:

1. Go ahead as planned, because all the statutory approvals have been obtained
2. Try to fairly resolve issues among the stakeholders
3. Communicate this issue to the senior management of the company and ask them to take necessary steps
4. Give a high priority to the interests of your company while trying to resolve conflicts with local residents

Justification: The project manager should make decisions and take actions based on the best interests of the
society, public safety, and the environment. Also, the project manager must identify the stakeholders, determine their
requirements, and then manage and influence the requirements in such a way as to ensure a successful project.

Please note:
Option 1: This is not appropriate because this would mean ignoring an important stakeholder "the residents of the
locality", who are going to be directly affected by the plant.
Option 3: As a project manager, it is your responsibility to manage the requirements of different stakeholders. This
option requires you to shirk that responsibility and pass on the buck to your company management.
Option 4: All stakeholders must be managed equitably (and without bias) for successful implementation of the project.

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Correct Answer: # 2

Question: The Cost Performance Index (CPI) of a project is 0.8 and you have a limited budget. You are planning to
procure a product from the supplier. In this situation, you should:

1. Ask the supplier to supply a product of slightly lower quality, since it will cost less.
2. Try innovative means to lower costs.
3. Remove non-critical tasks from the project schedule.
4. Try to crash the project as shortening the project schedule decreases costs.

Justification: Since CPI is 0.8, the project is over-budget. Option 2: This is the best answer as it looks at all
possible means to decrease costs.

Option 1: This is unacceptable, as lower quality product will not meet customer satisfaction and hence does not
satisfy the requirements of the project.
Option 3: This is not correct because removing non-critical tasks from the project schedule will mean that the project
will remain incomplete.
Option 4: This will increase the costs further as crashing usually results in higher project cost.

Correct Answer: # 2

Question: A project manager disclosed some crucial information to a prospective seller. Which aspect of PMI Code
of Ethics and Professional Conduct did he violate?

1. Maintain and satisfy the scope and objectives

2. Prevent conflict of interest
3. Provide accurate and truthful representations
4. Refrain from offering or accepting inappropriate payments, gifts, etc.

Justification: The project manager should maintain and respect the confidentiality of sensitive information
obtained in the course of professional activities or otherwise where a clear obligation exists. Also, the project
manager should ensure that a conflict of interest does not compromise legitimate interests of a client or customer, or
influence professional judgments.

Reference: PMI Code of Ethics and Professional Conduct and PMstudy.com study notes

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Correct Answer: # 4

Question: Your project is nearing completion, when the customer requests you to include an additional feature in
the project`s final product. The BEST course of action is to:

1. Include the feature, as it will improve customer satisfaction

2. Include the feature - otherwise the product will not be accepted by the customer
3. Talk with the customer and explain that the new feature does not make business sense
4. Take the requirement through the change control process

Justification: Option 4 is the best available choice.

Option 1 and option 2 are not recommended, because this requirement was not in the initial scope of work. Agreeing
to include this requirement now will impact your project deliverables.

Option 3 assumes that you know more about the business needs than the customer, which may not be true.

Correct Answer: # 3

Question: You are aware that a team member of your project is likely to be promoted shortly. There is also a
possibility that she may be transferred out of the project following the promotion. In this situation, you should:

1. Give a bad appraisal report to delay the promotion of the person until the project is completed.
2. Inform the team member about the likelihood of her promotion and ask her to give her responsibilities to another person.
3. Ask the member, after she is promoted and receives transfer orders, to prepare a transition plan.
4. Hire another resource, who can replace the promoted member.

Justification: Option 1 is unethical. Option 2 and option 4 assume that the person will be promoted and
transferred, if you act on this assumption, and the promotion does not happen, it might create problems. Option 3 is
the best choice as you are not sure whether the resource will get a promotion or get transferred. So, only after the
promotion/transfer is confirmed, you should ask her to hand over charge.

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Correct Answer: # 3

Question: You are working in the vendor management department of your company and are responsible for
sourcing printing machines from manufacturers. You recently visited a marketing conference of a leading printing
machine manufacturer, where you were offered a gift-voucher of $ 200 for attending the conference. You should:

1. Accept the gift, because it is compensation for attending the conference

2. Accept the gift and also inform your manager
3. Return the gift, because it could be construed as personal gain
4. Accept the gift, because it is for a small amount and was given to everyone in the conference

Justification: A project manager has the responsibility to refrain from offering or accepting inappropriate
payments, gifts, or other forms of compensation for personal gain, unless it is in agreement with applicable laws or
customs.

Reference: PMI Code of Ethics and Professional Conduct

Correct Answer: # 2

Question: While reviewing the performance reports of your project, you notice that the Cost Performance Index
(CPI) is 1.2 and Schedule Performance Index (SPI) is 0.8. In this case you should:

1. Make changes to the performance baseline to improve the SPI

2. Evaluate options to crash or fast-track the project
3. Inform the management why the project got delayed
4. Tell the team-members that they have no option but to meet the target dates as stated in the project schedule

Justification: Since SPI is 0.8, the project is behind schedule. But since CPI is 1.2, you are under budget.
Option 2: This (Fast tracking or crashing) is the only alternative that helps solve the problem. They may increase
costs but decrease the project timelines.

Option 1: This is unethical and does not solve the issue.

Option 3: This does not solve the problem. Accepting the change in schedule timelines and informing management
about the project delay should be the last option to choose, as there is no other way to bring the project back on
track.

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Option 4: This is going to put the team members under a lot of stress, because the cause of the problem is not
properly investigated and identified.

Reference: PMstudy.com comments

Correct Answer: # 1

Question: One of your team members filed a critical report ten minutes before a bidder conference. You notice
some serious errors have crept into the report. You should:

1. Cancel the meeting and reschedule it at a later date

2. Go ahead with the meeting and tell the participants what is wrong with the report
3. Go ahead with the meeting, but ask your team member to make the presentation
4. Refer the team member`s report to management and ask them to cancel the meeting

Justification: Option 1 is the best choice. Option 2 and 3 can adversely impact the team morale and undermine
your position in the bidder conference. Option 4 is not recommended, as you should try to solve the problem yourself.

Correct Answer: # 1

Question: In an informal discussion you had with another PMP certificant, he mentioned how he was able to sit for
the PMP Certification exam three years ago using false contact hour certificates. You should:

1. Report this to PMI

2. Report this to your manager
3. Do nothing, since he is a colleague
4. Do nothing, since he had taken the PMP exam three years ago, and contact hour certificates get audited only for one year

Justification: A project manager`s responsibility is to report, upon a reasonable and clear factual basis, possible
violations of PMI Code of Ethics and Professional Conduct committed by individuals in the project management field.

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Correct Answer: # 1

Question: When the contract is halfway through, the buyer requests you to incorporate some additional
requirements which were not defined in the original contract. Since satisfying the buyer is important, you go ahead
and incorporate those requirements as part of the project. According to PMI, this action is a violation of which aspect
of Code of Ethics and Professional Conduct?

1. Responsibility to maintain and satisfy the scope and objectives

2. Responsibility to ensure that a conflict of interest does not compromise legitimate interests
3. Responsibility to provide accurate and truthful representations
4. Responsibility to cooperate with PMI concerning ethics violation and the collection of related information

Justification: Option 1 is violated because adding the requirement violates the contractual terms, which will impact
project deliverables. Options 2, 3, and 4 are not relevant in this context.

Reference: PMI Code of Ethics and Professional Conduct

Correct Answer: # 1

Question: You are managing a project in a foreign country, where you realize you will have to pay a fee to some
government agencies to get your work done. You should:

1. Pay the fee to the government agencies

2. Refuse to pay the fee, because they are bribes and hence unethical
3. Make a case why fees should be paid to government agencies, and present it to your management
4. Offer gifts to the government officials instead of fee to get their support

Justification: A project manager has the responsibility to refrain from offering or accepting inappropriate
payments, gifts, or other forms of compensation for personal gain, unless it is in conformity with applicable laws or
customs of the country where the project management services are provided. In this scenario, since the law of the
country requires payment of fee to the government agencies, you will not be committing any breach of the Code if
you pay the same.

Please note that fees are ethical but tips, bribes and kick-backs are unethical.

Reference: PMstudy.com comments

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Correct Answer: # 1

Question: As a PMI Certified project manager, you are expected to comply with all organizational rules and
policies. In this context, you are expected to:

1. Provide accurate and truthful representations concerning all information directly or indirectly related to all aspects of the PMI
Certification Program
2. Report to PMI all possible violations of the PMI Code of Ethics and Professional Conduct by individuals in their work area
3. Escalate to PMI all possible ethics violations
4. Disclose to PMI any significant circumstance that could be construed as a conflict of interest or an appearance of impropriety

Justification:

Responsibility towards PMI

· Provide accurate and truthful representation concerning all information, directly or indirectly related to all aspects of
the PMI Certification Program, including but not limited to the following:

o Examination applications

o Test item banks

o Examinations

o Answer sheets

o Candidate information

o PMI Continuing Certification Requirements Program reporting forms

· Maintain and respect the confidentiality of the contents of the PMI credential exams.

· Uphold policies, rules, regulations and laws that govern our work, professional and volunteer activities.

· Report possible violations, only if we can substantiate them by facts, of the PMI Code of Ethics and Professional
Conduct by individuals in the field of project management.

· Bring ethics violations to the attention of the appropriate body of resolution, along with the details of related

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information.

· Apply the organization’s (employer, Project Management Institute, or other group) rules without favoritism or
prejudice.

Reference: PMI Code of Ethics and Professional Conduct

PMstudy.com comments: Please note that all other options are extreme measures concerning reporting of all
possible violations or situations to PMI leading to conflict of interest. Usually, instead of reporting to PMI, these should
be taken up within the performing organization.

Correct Answer: # 1

Question: One of your team members was late for a critical bidder conference which caused a lot of confusion. In
this context,

1. You should talk with the team member to understand why he was late and discuss how to prevent similar situations in future
2. You should raise this issue with your manager and ask for ways to avoid similar problems in future
3. You should raise this issue with the team member`s manager and ensure that he makes himself available for future meetings
4. You should raise a risk memo highlighting the problems caused because of his non-availability

Justification: Option 1 solves the problem in a realistic manner. The team member may have been late to the
meeting due to legitimate reasons. So, you should definitely talk to him and understand his situation. Moreover, you
should have a contingency plan whereby if a team member is not available, critical meetings are not exposed to risk.

Reference: PMstudy.com comments

Correct Answer: # 3

Question: Which of the following is not the responsibility of a PMP certificant?

1. Maintaining the confidentiality of sensitive information that you have access to

2. Managing situations wherein conflicts of interest arise
3. Ensuring the integrity of your team members
4. Refraining from offering and accepting inappropriate payments and gifts

Justification: Although the project manager is responsible for ensuring the integrity of the project, she cannot be
responsible for the integrity of her team members. However, she should definitely try to influence her team members
to perform all project activities in an ethical manner and with integrity.

All the remaining options are part of the PMI Code of Ethics and Professional Conduct

Reference: PMstudy.com comments

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Correct Answer: # 1

Question: As a project manager, achieving customer satisfaction is an important objective for you. Which of the
following will help you in attaining your objective?

1. Defining requirements
2. Providing more features than what the customer has asked for
3. Identifying project related risks
4. Providing project justification

Justification: Option 1 is the best answer. Defining requirements will help the customer be clear on the
functionalities she is going to find in the final product. For the project team, defining requirements is very critical,
because it will help in scope definition and scope verification.
Option 2: Providing more features than what the customer has asked for is "gold plating" which is not approved by
PMI.
Option 3: Identifying project related risks definitely has to be done by the project team and some high probability and
high impact risks should be communicated to the customers. But defining requirements results in a higher degree of
customer satisfaction than identification of risks.
Option 4: Providing project justification is a part of the project charter and is more relevant for the business to
evaluate future trade-offs.

Reference: PMstudy.com comments

Correct Answer: # 2

Question: You are in the build phase of your project, when you realize that because of a design error, the product
will not meet the performance parameters specified by the customer. In this context, you should:

1. Revise downward the performance parameters so that the product developed will satisfy those parameters
2. Discuss with your team to try and find alternative methods to solve the issue
3. Escalate to your management team
4. Ask for additional funding from your business sponsors to accommodate the new requirement

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Justification: Option 2: This is the correct answer. The first step should be to try and assess the problem within the
team and then explore alternative methods to solve the issue.

Option 1: This is unethical if done without consulting the customer.

Option 3: This is a measure to be taken if it is determined that alternatives are not available and there is going to be
an impact on project cost, schedule, or quality.
Option 4: Asking for additional funding should be done only after assessing the impact of the design error and after
being satisfied that additional funding will be required.

Reference: PMstudy.com comments

Correct Answer: # 2

Question: You are the project manager of a very critical project, which will impact the lives of several people in
your community. To ensure the success of your project, you try to circulate accurate and truthful communication to
the public through advertisements and statements published in newspapers. This demonstrates that you are good at:

1. Defining scope and managing customer expectations

2. Managing your responsibility to the customer and the public
3. "Properly marketing promotional activities" as per Deming and Shewhart
4. Ensuring the successful completion of your project

Justification: As per PMI, the following are the responsibilities of the project manager to the customer and the
public:

1. Responsibility to provide accurate and truthful representations to the public in advertising, public statements and in
the preparation of estimates concerning costs, services, and expected results.
2. Responsibility to maintain and satisfy the scope and objectives of professional services, unless otherwise directed
by the customer.
3. Responsibility to maintain and respect the confidentiality of sensitive information obtained in the course of
professional activities or otherwise where a clear obligation exists.

Reference: PMI Code of Ethics and Professional Conduct

PMstudy.com comments

Option 1: "Providing accurate and truthful representations to the public" will not help in proper scope definition.
Option 3: No such theories of Deming and Shewhart exist.
Option 4: "Providing accurate and truthful representations to the public" will not ensure successful project completion
-- there are several other activities required to ensure project success.

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Correct Answer: # 2

Question: You have earned a doctorate from MIT and are currently working with a leading chip manufacturer. A
seller you met at a vendor conference requested you to be their part-time consultant to design an innovative
automobile component. At MIT, you did a similar project and are inclined to participate in the venture, as there is no
conflict of interest involved. In this context, it is advisable that you should:

1. Decline the seller`s offer, because it could be construed as conflict of interest by your company
2. Ask your senior management whether you can participate in this venture
3. Leave the company and take up the seller`s offer, because it interests you
4. Accept the seller`s offer and inform senior management

Justification: Option 2 is the best choice. This is the first step that you should take. Once you inform the senior
management, they may allow you to take the part-time assignment with the seller, if they see no conflict of interest. If,
on the other hand, your company sees this as conflict of interest, you can go for Option 1 (Decline the seller`s offer)
or option 3 (Leave the company and take up the seller`s offer). Option 4 is not recommended; you should first inform
the management before accepting the seller`s offer.

Reference: PMstudy.com comments

Correct Answer: # 1

Question: You are discussing your project with a close friend and colleague in the company. You are worried that
your project is behind schedule and over budget. Your colleague explained how she was able to bring her project
back on schedule by taking out some non-critical tasks from the project scope without informing anyone in the
organization. She advised you to do likewise. In this context, you should:

1. Inform management about your colleague`s activities.

2. Get more information on how your colleague was able to get the project on schedule, so you can do something similar for your project.
3. Do nothing and continue with your project as if nothing happened.
4. Try crashing your project.

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Justification: Option 1: This is the correct answer, as you are following PMI Code of Ethics and Professional
Conduct. As per PMI Code of Ethics and Professional Conduct, whenever you come across any illegal activity or
impropriety, you should report it to the management. Clearly, taking out tasks from the project scope without proper
authorization is a violation of the Code.

Option 2: This is not recommended, as you are trying to copy an unethical practice.
Option 3: This is not recommended, as you should report your friend and also have a discussion with your manager
about the problems you are facing in your project.
Option 4: This is not recommended. Although crashing may shorten the project schedule, it increases project costs.
Since your project is already over budget, it will make things worse.

Reference: PMstudy.com comments

Correct Answer: # 3

Question: While reviewing a land purchase agreement with the government, the project manager thought that
some clauses in the agreement were not in order. She consulted the company lawyer, who advised her that all the
legal formalities and procedures were properly followed as per the state laws. However, the project manager was not
satisfied with the explanation given by the company lawyer. To find out a solution to this issue, she should:

1. Discuss the issue with a friend, who is a corporate lawyer in another firm.
2. Inform the senior manager about possible misconduct in the land purchase agreement.
3. Trust the company lawyer and go ahead with the project.
4. Report the issue to PMI and seek their advice.

Justification: Option 3: This is the correct answer. We must differentiate between "formalities and procedures" vs.
"practices. For example, telling lies, fraud, etc., are improper practices, which must be reported and acted upon". The
project manager, however, is not competent to question the correctness of the company`s legal formalities and
procedures. So, if the company lawyer advises her that "all the legal formalities and procedures were appropriately
followed as per the state laws," the project manager should take his advice.

Option 1: This is not the best choice, since the matter, which might be proprietary should not be discussed with
outsiders to the organization.
Option 2: The project manager should not bring up the issue with the senior manager, since she is not competent to
question the legal opinion of the company lawyer.
Option 4: No improper practice is involved here and therefore should not be reported to PMI. PMI does not concern
itself with individual instances of perceived impropriety.

Reference: PMstudy.com comments

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Correct Answer: # 1

Question: You are in the closing stage of the project. While reviewing the product, you have come to know that the
tolerance is 0.05 microns more than what was specified in the project requirements. This is a very minor deviation,
and you know that your customer will not notice it during product delivery. Also, it will not adversely impact your
customer when the product is put to actual use. What should you do in this situation?

1. Inform the customer about the deviation

2. Change the project documents to allow for small deviations
3. Ask your project team to make changes to the product
4. Create a change request to make changes in the product

Justification: It is the project manager`s responsibility to maintain and satisfy the scope and objectives of
professional services, unless otherwise directed by the customer.

Option 1: This is the correct answer. According to PMI, if there is any change in the project or product scope, it has to
be explained to the customer, who can then make an informed decision.

Option 2: The project manager should not change the project requirements or project documents without prior
approval of the sponsor and the customer.

Option 3: This is not the best choice. First the project manager should talk to the customer. Since this is a minor
deviation, chances are that the customer might accept the product. If the customer does not accept, then the project
team should be asked to rectify the discrepancy.

Option 4: This is not the best choice. First the project manager should talk to the customer. Since the deviation is
minor in nature, chances are that the customer might accept the product. If, on the other hand, the customer is not
satisfied, then the project manager can direct the team to correct the error and a change request need not be
created, as the deviation is minor in nature.

Reference: PMI Code of Ethics and Professional Conduct

Correct Answer: # 3

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Question: Your friend requests you to lend him your accounting package software CDROM to install the software
in his computer. You should:

1. Give him the software for free

2. Give him the software and charge some money for it
3. Refuse to give him the software
4. Report the copyright violation to the copyright owner of the software package

Justification: Software is an intellectual property (like a book, article written, etc.) and should not be distributed
without prior license/approval. So, option 3 is the best answer.

Options 1 and 2 talk about distribution of the software, which is not an accepted professional conduct.
Option 4 is not valid: Your friend has not started using the software. Hence there is no copyright violation.

Reference: PMstudy.com comments

Correct Answer: # 1

Question: Your company manufactures car batteries. A research team discovers that there is a manufacturing flaw
in the batteries, 25,000 of which are already sold. This flaw can cause fatal accidents, although no such accidents
have been reported yet. Recalling all the batteries sold would cost the company as much as $ 25 million. What first
step is your company going to take on this issue?

1. Recall all batteries for repair

2. Do nothing - there are no reported accidents till now
3. Strengthen the contingency reserves of the company to handle financial implications arising out of future accidents occurring due to
malfunction of the batteries
4. Ensure that the manufacturing defect is rectified in subsequent production

Justification: Option 1: This is the correct answer as it is ethical to recall the batteries immediately on discovering
the manufacturing flaw in spite of the high cost involved and probability of accident occurrence.

Option 2 and Option 3: These are not recommended, because they are unethical actions; they presuppose inaction
till accidents happen.

Option 4: This is not recommended. This is certainly a step that the company should take--- but not the first.

Reference: PMstudy.com comments

Correct Answer: # 3

Question: You are constructing a railway track, which will pass through a less populated area. All necessary
government and regulatory approvals have been obtained for the project. You are aware that due to the motion of the
train, there is a very low probability of houses in the vicinity developing cracks. In this context, you should:

1. Stop the project

2. Do nothing, since the probability of adverse consequences is minimal

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3. Inform the local people about the possibility of damage to their houses and preventive measures
4. Teach people how to rebuild their houses with concrete

Justification: According to PMI Code of Ethics and Professional Conduct, a certificant should assume:
a. Responsibility to provide accurate and truthful communications.

b. Responsibility to comply with laws, regulations, and ethical standards governing professional practice in the
state/province and/or country while providing project management services.

Option 3: This is the correct answer. Although the probability of damage to the houses is low, it is ethical to inform the
local people and provide them all necessary assistance.

Option 1: Stopping of the project is an extreme reaction, because all approvals have already been obtained.
Option 2: This is unethical and violates the PMI Code of Ethics and Professional Conduct.
Option 4: Teaching them to rebuild houses with concrete is beyond the scope of the project.

Reference: PMI Code of Ethics and Professional Conduct

Correct Answer: # 1

Question: You are doing a project under cost-reimbursable contract where the target price was $1,200,000. Your
project is nearing completion and CPI is currently 1.3. You are concerned that you will be losing money by billing for
less. In this context, you should:

1. Tell your buyer about the CPI as it stands today and explain the reasons for the deviation from the plan.
2. Invoice for $1,500,000 because there are chances for costs being higher in a subsequent project.
3. Tell the bad news to the buyer and suggest charging more from the customer.
4. Add some extra features to cause "customer delight".

Justification: As per PMI Code of Ethics and Professional Conduct, you should assume:
a. Responsibility to maintain and satisfy the scope and objectives of professional services, unless otherwise directed
by the customer

Option 1: This is the correct answer, because it is ethical to inform the buyer about the CPI as it stands.

Option 2: This is unethical because you are over-invoicing for the project.

Option 3: This does not reflect the correct position. Since CPI is 1.3, you have extra money, and there is no need to
ask the buyer for extra funding.

Choice 4: This is also called "gold plating." We should never deliver more than what is undertaken and as approved
in the project scope.

Reference: PMstudy.com study notes

Correct Answer: # 2

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Question: The seller`s project is undertaken on contract and you are an employee of the seller. Since you had
worked earlier with ABC Bank, the buyer, you happen to be aware of the evaluation criteria used in ABC Bank to
select sellers. You understand that this could be a potential conflict of interest situation. How do you propose to act?

1. Do nothing and continue to work as before

2. Take appropriate person in ABC Bank into confidence and discuss this issue with her
3. Disclose the evaluation criteria to your (seller) organization and help their business growth
4. Remove yourself from the project

Justification: Option 2: This is the correct answer. Since the evaluation criteria are proprietary information of ABC
Bank, it is important for you to discuss the matter directly with the appropriate person in the ABC Bank.

Option 1: This introduces conflict of interest as to whether to act or not in favor of your current employer.

Option 3: This is unethical, because proprietary information of the buyer should not be disclosed.

Option 4: This is an extreme step that could be taken only if required after talking to the buyer.

Reference: PMstudy.com comments

Correct Answer: # 4

Question: You observe that two technical team members have been arguing constantly.
You would like to ensure that personality clashes do not endanger your project. To resolve
this issue, you should use:

1. Leading and influencing skills

2. Communication skills
3. Negotiation skills
4. Problem solving skills

Justification: Problem solving skills include problem definition and decision-making.

Problems may be technical (differences of opinion about the best way to design a product),
managerial (a functional group is not performing according to plan), or interpersonal
(personality or style clashes).

Reference: PMstudy.com comments

Correct Answer: # 3

Question: You are a project manager in an IT company. You have recently received an offer as a project manager
in a construction company offering a 25% salary hike. You have excellent technical knowledge in the IT field, but do
not have much exposure to the construction industry. In this context,

1. You should attend training classes related to the construction industry to get more technical expertise in the field.

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2. You should not take up the assignment, because you will lose out on the experience and skills gained in the IT field.
3. You should take up the assignment, because project management skills required in the construction company are similar to those
required in the IT field.
4. You should try to get more information about project management in the construction industry and then make an informed decision
about whether to take up the new opportunity.

Justification: According to PMI, project management skills span across industries and the knowledge gained in
one industry can be used in other industries. A project manager need not be technically qualified in any specific
industry to succeed.

Reference: PMstudy.com comments

Correct Answer: # 3

Question: Your company has recently been awarded a contract by the government to reconstruct houses
devastated by an earthquake. In this context, the government`s role will impact your:

1. Project scope baseline

2. Business case and Business need
3. Project charter
4. Project management plan

Justification: Option 3: Since the government is an external agency, and this is a "recently awarded" project as
mentioned in the question, hence inputs (e.g. contract) from the government will help the project manager in creation
of the project charter for the performing organization.
Option 1: Scope Baseline includes the Scope Statement, WBS and WBS Dictionary. So, this will be created later on
after the project charter is finalized.
Option 2: Business Need/Business case for the project should be already established because the government has
contracted out the work to your company.
Option 4: Project management plan is a planning document which will be created after the project charter is finalized.

Reference: PMstudy.com comments

Correct Answer: # 3

Question: Which of the following is not the responsibility of a Project Management Professional?

1. Making decisions and taking actions

2. Fulfilling the commitments that you undertake

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3. Ignoring errors and omissions
4. Upholding the Code of Ethics and Professional Conduct

Justification: It is the responsibility of a project management professional to take ownership of the decisions you
make or fail to make, the actions you take or fail to take, and the consequences that result from these actions. When
errors or omissions are made, the certificant should not ignore them, but should take ownership and make suitable
corrections.

Reference: PMstudy.com comments

Correct Answer: # 1

Question: You have joined a company as a project manager, and although you maintain the professional conduct
expected of you, it is not reciprocated by the other employees. The BEST course of action for you would be to:

1. Maintain the same conduct

2. Change your behavior and be one among the other employees
3. Complain to the higher authority
4. Ignore others` behavior

Justification: As a project manager, you are expected to behave as befitting a professional project management
certificant, even when such conduct is not reciprocated by your colleagues. This is one of the major tenets of the
Code of Ethics and Professional Conduct prescribed by PMI.

Reference: PMstudy.com comments

Correct Answer: # 4

Question: You realize that you are not able to concentrate on your work due to an actual or potential conflict of
interest situation. Which out of the following should you NOT do, in this context?

1. Disclose the facts to the affected stakeholders

2. Prepare a mitigation plan
3. Seek stakeholders` consent to proceed further

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4. Engage in decision-making activities related to the conflict of interest situation

Justification: When you realize that you are in an actual or a potential conflict of interest situation, you should
immediately withdraw from engaging in decision-making activities. Decisions taken in such situations might go
against the interests of your current project and the employer company.

Reference: PMstudy.com comments

Correct Answer: # 3

Question: As part of your duties as a project manager, you make sensitive company data available to a vendor. In
this context, which of the following precautions should you take?

1. Insist that the vendor signs a non-disclosure agreement after you release the sensitive information.
2. Make sure that the vendor receives all the sensitive information in time.
3. Ensure that the vendor signs a non-disclosure agreement before you release the sensitive information.
4. Monitor the vendor in order to prevent her from sharing the information with her competitors.

Justification: PMI Code of Ethics and Professional Conduct requires a project manager not to disclose sensitive or
confidential information. But, at times, an organization has a legitimate need to disclose confidential information to
vendors, governmental agencies, or others. When disclosing confidential or sensitive information, it is the
responsibility of the project manager to ensure that proper nondisclosure agreements are signed prior to the
disclosure of the sensitive information.

Reference: PMstudy.com comments

Correct Answer: # 2

Question: You are working as a project manager in a company; you get to know that a person managing another
project of your company has furnished false reports about his PMP experience and credentials. What should you do
in this context?

1. Report violation of the PMP code of conduct to PMI.

2. Report violation of the PMP code of conduct to PMI only if found true after verifying the facts.
3. Report violation of the PMP code of conduct to PMI and then verify the facts.

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4. Report the violation to your manager.

Justification: Reporting violations of the PMP code of conduct is one of the primary responsibilities of a project
management professional. If and when one gets to know that a violation of the PMP code of conduct has occurred,
she should verify the facts, if found true, must notify the PMI.

Reference: PMstudy.com comments

Correct Answer: # 3

Question: You are managing a team of twenty members; you realize that some of your team members are
showing less-than-desirable customer service attitude. In this context, which of the following will be the most
appropriate action?

1. Warn those team members of the consequences of their attitude.

2. Inform the senior management about those team members.
3. Influence those team members to adhere to company expectations about customer service
4. Replace those team members.

Justification: A project manager has a great amount of influence on her team members. It is her responsibility to
coach and influence the team members who do not posses right attitudes, to conform to the standards of the conduct
expected by her organization.

Reference: PMstudy.com comments

Correct Answer: # 4

Question: You are managing a team consisting of members from four different countries; you realize that some
cultural differences among your team members are hampering the progress of your project. In this context, what
should you do?

1. Conduct team building activities in which most of the team members can participate actively.

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2. Train your team members on project objectives.
3. Train your team members on the broad objectives of your organization.
4. Provide training to your team members regarding cultural diversities among different countries along with training on project objectives
and the company culture.

Justification: When working with team members of different countries, to ensure that cultural diversities do not
hamper the progress of the project, the project manager must provide training to her team members regarding
cultural diversities among various countries, project goals, and the ethics and culture of the company.

Reference: PMstudy.com comments

Correct Answer: # 1

Question: You are a member of the committee which is appointed to oversee the awarding of an important
contract in your company. In this context, which of the following cannot be treated as conflict of interest situations?

1. Your friend bids for the contract and you inform the committee and the project sponsor about it.
2. Your relative bids for the contract and you do not inform the project sponsor about it.
3. Your close friend bids for the contract and you refrain from participating in the contract awarding decision process without informing
your sponsor.
4. Your friend bids for the contract and you make sure that the contract is awarded to him.

Justification: Conflict of interest arises when personal interests out-weigh professional considerations. A person`s
associations and affiliations with others can also lead to conflict of interest.

Please note that if there is a conflict of interest situation, inform the appropriate stakeholders and distance yourself
from the conflict situation, if possible.

Reference: PMstudy.com comments

Correct Answer: # 3

Question: Your company has been awarded an engineering, procurement and construction (EPC) contract to build
a combined-cycle gas turbine (CCGT) plant. You have been assigned to manage this project, but your expertise as a

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project manager is in the field of information technology. In this context, what should you do?

1. Explain to your senior management about your knowledge and experience.

2. Ask for adequate training in your new area of operation.
3. Accept the responsibility and put in your best efforts.
4. Reject the assignment stating that it is beyond your capabilities and experience.

Justification: A project manager must always be truthful while reporting about her qualification, experience,
background, and past performances to one`s prospective employers, customers, etc.

PMI believes that a project manager need not be a subject matter expert, and similar project management skills can
be used across different industries.

Reference: PMstudy.com comments

Correct Answer: # 1

Question: You and your sponsor are discussing the financial benefits of selecting between two similar projects -
project A and project B. When evaluating the projects, you realize that project A will cause some amount of short-
term environmental damage but minimal long-term environmental problems. In this context, what will be the best
course of action?

1. Explain to your senior management about the potential environmental damage caused by project A and persuade them to discard the
project.
2. Select the project A as there is only low probability of causing long-term environmental damage.
3. Try to find solutions to the environmental damage that may occur in the future because of project A.
4. Undertake the project A but try to minimize the environmental damage, if any.

Justification: Project managers, while making decisions regarding a project, should preferably select a project with
no(or minimal) negative impact on the environment, community and society.

Reference: PMstudy.com comments

Correct Answer: # 4

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Question: Your company asks you to manage a project of its subsidiary unit in another country. You quickly realize
that workers in the subsidiary unit have poor work ethics as compared with that of your parent company. In this
context, which of the following will be the most appropriate course of action?

1. Ask your new team to emulate the work ethics of the teams of your parent company.
2. Take steps to change the work culture of your new team.
3. Regard your new team as lazy and impose sanctions.
4. Treat it as cultural differences, and try to determine ways to improve productivity.

Justification: The PMI Code of Ethics and Professional Conduct requires a project manager to address things with
an open mind and accept the cultural and ethical diversity that exists between different countries. So, it is not the
responsibility of the project manager to enforce the work-ethics of one`s own country on the people of another
country.

Reference: PMstudy.com comments

Correct Answer: # 2

Question: You are working as a project manager in ABC company. Your company decides to select a vendor for a
specific requirement and invites bids from vendors. After the bidders conference, one of the vendors gifts you a watch
stating that it is his country`s culture to offer a gift to new acquaintances. In this context, what should you do?

1. Accept the gift regardless of your company`s policy.

2. Act as per the norms of your company regarding accepting gifts.
3. Reject the gift.
4. Accept the gift and inform your senior management.

Justification: The PMI Code of Ethic and Professional Conduct requires a project management professional to
respect different cultures and customs, yet it mandates one to follow the policies of one`s company at all costs. So,
respecting the culture of another country must not supersede the policies of one`s organization.

Reference: PMstudy.com comments

Correct Answer: # 1

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Question: You have been asked by your company to manage a project in a foreign country. You must obtain a
license for starting your project, but realize that acquiring this license will take two weeks - this may lead to
unnecessary delays and cost overruns. One of your team members informs that she can get the license in two days
by paying an additional fee of $ 100. In this context, you should:

1. Ask your team member to get the license as early as possible by paying an additional fee.
2. Wind up the project and move to another country.
3. Obtain the license through the normal path without paying additional fee, and inform your senior management about the impending
delay.
4. Proceed with the project work without the required license.

Justification: Fees are ethical and can be paid if required.

Reference: PMstudy.com comments

Correct Answer: # 2

Question: While managing a crucial project for your company, your sponsor reprimands you for not including an
additional feature, beyond the project scope, which could have provided "customer delight". In this context, you
should:

1. Resign from the project.

2. Give precedence to project and organizational objectives.
3. Complain against the sponsor to the customer.
4. Add the new feature to the product as requested by the sponsor.

Justification: The PMI code of ethics and professional conduct mandates a project manager to maintain her
professional demeanor at all times. Also, the project manager should always try to uphold project and organizational
objectives.

Option 1 and Option 3 are extreme measures, which can be taken at a later point of time, if the situation cannot be
remedied.
Option 4 is "gold plating" which is not recommended by PMI.

Reference: PMstudy.com comments

Correct Answer: # 1

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Question: Your company has awarded a contract to a vendor. After some time, you realize that the vendor
representative is your old buddy from school. You inform this to your senior management, but they insist that you
continue to administer the contract. So, to avoid any accusations of bias in this conflict of interest situation, you
should:

1. Document all the decisions taken by you on the activities performed by the vendor.
2. Refrain from administering the contract.
3. Resign from the project.
4. Remind your senior management of conflict of interest.

Justification: In case of conflict of interest situations, the project manager should inform senior management, and
distance oneself from the conflict of interest situation, if possible. However, in this context, as the senior management
insists and the project manager has to continue in the current position, appropriate documentation can help in
preventing any accusation of bias in conflict of interest situations.

Option 2 and Option 4 are not relevant - you had already mentioned about the conflict of interest situation to the
senior management and got approval to continue with the project.
Option 3 is an extreme step which need not be taken at this time.

Reference: PMstudy.com comments

Correct Answer: # 1

Question: You have received a lucrative offer (with double the salary) to manage a project involving construction of
a bridge. But you realize that this assignment is much more complex compared to other projects you have managed
in the past and you believe that you may not be able to complete this project successfully. In this context, you should:

1. Decline the offer.

2. Accept the offer and carry out the project to the best of your abilities.
3. Explain the situation to the project sponsor and ask her to provide you with training to take up PMP certification.
4. Ask the sponsor to assign a project lead to help you, who is an expert in managing complex bridge projects and can be accountable for
the tasks.

Justification: As per the PMI code of ethics and professional conduct, a project manager should always be truthful
while reporting about his qualifications, experience, past performance, etc. to his potential employers, customers, etc.

Option 1: The project manager should not take up assignments if he is not competent enough to complete them
successfully
Option 2: This may be unethical because the question states that the project manager believes that he cannot
complete the project successfully.
Option 3: Training may help but this option does not show that the project manager will be successful in handling the
project after the training.
Option 4: This is unethical. The project manager should be accountable and should not shift responsibility of the
project to another person.

Reference: PMstudy.com comments

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Correct Answer: # 2

Question: You have recently taken over a project from another project manager, who left the company. You realize
that the project is behind schedule and over budget, but the senior management is unaware of this fact. In this
context, what should you do FIRST?

1. Do not continue to manage the project.

2. Update the management with the status of the project.
3. Bring the project on schedule and then inform the management about the status of the project.
4. Do crashing and fast-tracking of the project.

Justification: As per the PMI Code of Ethics and Professional Conduct, a project manager should always provide
true account of information in an appropriate manner at appropriate times.

Option 1: This is an extreme step and should not be taken now

Option 2: This is the correct answer, the management should be informed about the project status.
Option 3: This is unethical - you should not withhold information from appropriate stakeholders.
Option 4: Crashing would further increase costs and fast-tracking may increase risks : this may adversely impact the
project status, and should be done only after informing the management.

Reference: PMstudy.com comments

Correct Answer: # 3

Question: In your project, there is a necessity to use a certain technology that will save you time and money, but
the required technology is patented. After extensive research, you determine that use of any other technology is not
feasible. In this context, you should:

1. Use the required technology and pay the royalties later.

2. Try to develop another technology in-house through extensive research.
3. Pay the royalty and obtain written permission of the owner to use the technology.
4. Use the technology with little modifications to avoid patent related issues.

Justification: Patented technology can be used only after obtaining written permission of the owner, and after
payment of appropriate royalties.

Reference: PMstudy.com comments

Correct Answer: # 2

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Question: You have been working on a project for the last six months. Your management lets you know that you
will receive an incentive of $ 5,000, if you complete the project one month ahead of schedule. When closing the
project ahead of schedule, your team informs you that the product contains a minor flaw and may not fully satisfy the
customer`s needs. However, rectification of the minor flaw will require a lot of changes and take 2 more months. In
this context, you will:

1. Close out the project.

2. Review the situation with your customer and sponsor.
3. Rectify the flaw and then close out the project.
4. Close the project and then inform the sponsor about the flaw.

Justification: Option 2: Since this is a "minor flaw," but rectification of that flaw would take a long time, it is better
to discuss with the sponsor and customer and get their inputs
Option 1 and Option 4: This is unethical - the project manager should definitely complete the project as per the
specifications before closing the project.
Option 3: Rectification of a minor flaw can lead to delay of 2 months in the project: so, the project manager should
first inform the sponsor and customer before rectification of the flaw.

Reference: PMstudy.com comments

Correct Answer: # 3

Question: In your project, the project manager believes in the superiority of his own race or ethnic background.
This is an example of:

1. Monochronic
2. Polychronic
3. Ethnocentric
4. Egalitarian

Justification: Some important definitions:

a) Monochronic: Doing one thing at a time

b) Polychronic: Doing many things at once

c) Ethnocentric: Belief in the superiority of one`s own race or ethnic background

d) Egalitarian: Treating all the project team members equally

e) Culture shock: Homesickness (in foreign assignments)

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Reference: PMstudy.com comments

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