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PMP Exam

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You have just been assigned a project in process.

The previous PM has been promo


ted and has given you his files on the project. In a folder marked Private you f
ind:
A. His personal expense reports associated with the project costs
B. The strategy for dealing with project stakeholders --->right answer
C. The project team directory of email address and home phone numbers
D. A personal thank-you note from your manager thanking the previous PM for
his service

The Stakeholder Management Strategy is often kept in reserve for the PM to use d
iscretely. It may contain sensitive information about individuals.
Who are stakeholders?
A. Sponsor, Customer, Project Manager
B. Project Team and Project Steering Committee
C. Project Team, Customer, General Public, Sponsor, and other Project Manag
ers ---> Right answer
D. Customer and Sponsor

This question is vague and all answers are technically correct. You can expect t
o see this type of question on the PMP exam as well. In this case, every answer
lists stakeholders, but 'C' is the best answer because it is the most complete l
ist. Stakeholders are anyone affected by your project, working on your project,
or interested in your project.
Sandra, having work performance information from her team members, has used earn
ed value analysis to determine the progress of the project in terms of time and
cost. She is now compiling that information for distribution to senior managemen
t. In which knowledge area is she working?
A. Integration Management
B. Report Performance---> Right answer
C. Communication Management
D. Distribute Information

She is executing the process of Report Performance in the Communications Managem


ent knowledge area. 'B' is incorrect because it's the process - not the knowledg
e area. 'A' is a knowledge area, but not the one that specifically deals with pe
rformance reporting. 'D' sounds like a good choice, because Sandra is distributi
ng information, but the specific tools being used are tools of the Report Perfor
mance process, not Distribute Information. Also, 'D' is another process - not a
knowledge area.

ll of the following are true regarding issues on a project except:


A. Issues should be assigned an owner and a target completion date.
B. Issues should be documented in the issue log.
C. Issues may arise from stakeholders internal or external to the project.
D. Issues may be removed from the issue log only after key stakeholder cons
ensus has been reached.---> Right answer

Choices 'A', 'B', and 'C' are all correct; however, choice 'D' is not a good fit
. Consensus is not the criteria for resolving or removing issues. See section 10
.4.1.4 for more information on issues and issue logs.
Which of the following statements is TRUE regarding issues?
A. All issues must be resolved in order for the project to be closed.
B. The issue log is a tool for stakeholders to manage project issues.
C. Each issue should be assigned to a single owner..---> Right answer
D. Issue management may be treated as a sub-project on larger, more complex
projects.

Each issue should be assigned to an owner and be assigned a target completion da


te. 'A' is incorrect since a project could be closed (successfully) and still ha
ve outstanding issues. Sometimes the issues are out of the project manager's con
trol. 'B' is incorrect since the issue log is not for the stakeholders - it is f
or the project manager to use to manage issues. 'D' is incorrect because issues
are managed within the context of a project. If you were even considering creati
ng a separate project to manage issues, your project is probably beyond hope.
Lessons learned should contain:
A. The collective wisdom of the team
B. Feedback from the customer as to what you could have done better
C. Information to be used as an input into administrative closure
D. Analysis of the variances that occurred from the project's baseline..---
> Right answer

This is important! Lessons learned focuses on variances from the plan and what w
ould be done differently in the future in order to avoid those variances.
What are two skills used in ensuring that no issues are not resolved in a timely
and proactive manner?
A. Attention to detail and organization skills
B. Communication skills and Management skills
C. Interpersonal skills and organizational skills
D. Management skills and interpersonal skills..---> Right answer

Soft skills such as interpersonal and management skills are important in relatin
g to individuals, building trust, and delivering a clear message. Each of the sk
ills listed in 'A', 'B', and 'C' would be good, but PMI specifies the two skills
in 'D' as tools used in the Manage Stakeholder Expectations process, which is d
escribed by the activities in the question.
Which of the following is FALSE regarding Distribute Information?
A. Distribute Information is an executing process.
B. Distribute Information ends when the product has been accepted...---> Ri
ght answer
C. Distribute Information may involve unexpected requests from stakeholders
.
D. Distribute Information carries out the communications management plan.

Did you get tricked by this one? Distribute Information doesn't always end when
acceptance has occurred, so this is the answer that doesn't fit. Some stakeholde
rs will need information distributed on the closure of the contracts and project
s. 'A' is true, because Distribute Information is an executing process. 'C' is t
rue because Distribute Information carries out predetermined communication, but
also will be used to respond to unplanned requests from stakeholders. 'D' is tru
e because Distribute Information is the process that executes the communications
management plan.
The first two efforts of the project manager in any project should be:
A. To develop the project plan and to assemble a project team
B. To investigate who the right people are that can steer the project and t
o be documented in the company as the project manager...---> Right answer
C. To collect the requirements from key people and to obtain clear authoriz
ation to lead the project
D. To register with the project management office as the PM on this project
and to have a face-to-face meeting with the project sponsor

Each of the possible answers has credible logic and importance to the project. K
eep in mind the PMI process framework when thinking about the sequence of effort
s in a project. The initiating processes are Develop Project Charter and Identif
y Stakeholders, which are described by the correct answer.
Communications skills would be used most during which of the following processes
?
A. Distribute Information...---> Right answer
B. Status Meetings
C. Report Performance
D. Control Communications
Your communications skills are used as a tool in Distribute Information. You sho
uld have eliminated 'B' and 'D' because they were not real processes. 'C' might
have been tricky for you, but it is incorrect because the process of Report Perf
ormance mainly produces the performance reports, which factually state the statu
s of the project. Distribute Information can cover many more topics and requires
more in the way of skill and communication ability.
The stakeholder register is important to which knowledge areas?
A. Communications and Scope
B. Scope, Quality, Risk, and Communications...---> Right answer
C. Scope, Risk, and Communications
D. Communications, Scope, and Quality

The stakeholder register is used as an input in the following five processes: Co


llect Requirements (Scope), Plan Communications (Communications), Plan Quality (
Quality), and Identify Risks (Risk). 'B' is the correct answer. This is an IMPOR
TANT input!
On a stakeholder analysis grid of Influence and impact, the scale is one to five
with five being the highest on each coordinate. The project sponsor would have
what rating on the grid?
A. Infl = 2.1 and Imp = 4.8
B. Infl = 5 and Imp = 1
C. Infl = 4.7 and Imp = 6.3
D. Infl = 4.6 and Imp = 4.3...---> Right answer

The project sponsor is a stakeholder that would have high ratings on both axes o
f an Influence-Impact grid. 'A' and 'B' do not fit this criteria and 'C' is off-
scale.
Which statement is not true regarding the strategy of managing project stakehold
ers?
A. The stakeholder management strategy is considered a project document.
B. A project onlooker that has enough influence to hurt your project should
prompt you as the PM to create a mitigation plan.
C. The management strategy for project stakeholders should be accessible to
the project team so they will know how to handle the stakeholders....---> Right
answer
D. A sponsor's advocate in senior management should be kept notified of the
key aspects of the project to maximize his support in management meetings.

Usually a document that can be very sensitive such as in this case is reserved f
or use by the project manager only. The other statements about the stakeholder m
anagement strategy are valid.
Which of the following is NOT a valid way to reduce risk?
A. Select a contract type that reduces risk
B. Insure against the risk
C. Create a workaround for the risk...---> Right answer
D. Plan to mitigate the risk

Read these questions carefully! The workaround is what you do after the risk occ
urs, so it does not reduce the risk as the question specified. 'A', 'B', and 'D'
all focus on reducing risk by transferring or mitigating it.
What is the order in which the following processes should be performed?
A. Perform Quantitative Risk Analysis, Perform Qualitative Risk Analysis, P
lan Risk Responses
B. Perform Qualitative Risk Analysis, Perform Quantitative Risk Analysis, p
lan Risk Responses...---> Right answer
C. Plan Risk Responses, Perform Qualitative Risk Analysis, Perform Quantita
tive Risk Analysis
D. Plan Risk Responses, Perform Quantitative Risk Analysis, Perform Qualita
tive Risk Analysis

This question should have been easier than it probably first appeared. Your firs
t clue is to know that Plan Risk Responses only happens after you have analyzed
your risks, which eliminates 'C' and 'D'. Then you can narrow it down further by
recalling that Perform Qualitative Risk Analysis is performed before Perform Qu
antitative Risk Analysis. This means that the qualities of the risks are analyze
d before you seek to quantify them.
What should you do when new risk situations arise while the project is underway?
A. Add them to the Risk Register...---> Right answer
B. Evaluate them with the team, the sponsor, and the customer
C. Add them to Lessons Learned documents
D. Complete a change request for them
You are managing the construction of a data center, but the location is in an ar
ea highly prone to earthquakes. In order to deal with this risk, you have chosen
a type of building and foundation that is particularly earthquake resistant. Th
is is an example of:
A. Risk transfer
B. Risk avoidance
C. Risk mitigation ...---> Right answer
D. Risk acceptance

The best answer here is 'C' risk mitigation since you are taking steps to lessen
the risk. 'A' is incorrect because you are not transferring the risk to anyone
else. 'B' is incorrect because you would need to relocate in order to completely
avoid the risk of earthquake. 'D' is incorrect because you are not merely accep
ting the risk - you are taking steps to make it less severe.
All of these are reasonable answers, but the one you would ALWAYS do and should
do first, is to add them to the risk register. Eventually you may evaluate them,
although not always with the sponsor or customer. You will also likely add them
to the Lessons Learned repository, although, again, that's not the first thing
to be done. New risks do not usually require a change request, but are simply ad
ded to the register and then processed in the analysis processes.
Which of the following would NOT be contained in the risk management plan?
A. A risk breakdown structure
B. A description of the overall approach to risk on the project
C. Risk roles and responsibilities
D. A list of identified risks...---> Right answer

The risk management plan does not contain the identified risks. It is more gener
al and high-level than that. The identified risks will be listed in the risk reg
ister, produced after the risk management plan
Which statement is the MOST true regarding the rolling of a die twice in a row?
A. Rolling a six on the first roll reduces the probability of rolling a six
on the second roll because it is highly improbable to roll six twice in a row.
B. The probability of rolling a six two times in a row is the same as the p
robability of rolling a six on the second roll after rolling a six the first tim
e.
C. Rolling a three the first roll is mutually exclusive of rolling a three
on the second roll.
D. Statistically speaking, the chance of rolling a six on the second roll o
f a die is 17 percent or 17 sixes out of a hundred rolls....---> Right answer

On any roll of the die, the probability of rolling a six is 1/6, or 17%. 'C' is
incorrect because mutually exclusive means that one choice precludes another; ho
wever, it is possible to roll three twice in a row, so these events are not mutu
ally exclusive. 'B' is incorrect because the probability of rolling six twice in
a row is 2.8% (1/6 times 1/6) and the probability of rolling a six on the secon
d roll is 17%. 'A' is incorrect because the first roll of the die has no influen
ce on the probability of rolling a six on the second roll.
Projects managed by the Forte Corporation seem to run into a lot of trouble. To
address this, the company has asked Maya to look into this and suggest a resolut
ion. Maya has reviewed the risk registers of 30 projects, and has noted that mos
t of them identified many risks, complete with response plans. Next, she examine
d the effectiveness of the response plans in preventing the risk from occurring.
She is starting to realize that the strategies chosen by the PMs don't always w
ork. What tool did Maya use to help her with this analysis?
A. Monitor and Control Risks
B. Earned Value Analysis
C. Audits...---> Right answer
D. Variance Analysis

Audits are used to examine and document the effectiveness of risk response plans
and of the risk management process. Monitor and Control Risks (A) is a process,
not a tool. Earned Value Analysis (B) and Variance Analysis (D) are both tools
of Monitor and Control Risks, but these tools focus on the difference between th
e planned response and the actual response. There are two separate questions to
be considered: Are we following the response plan, and is the response plan work
ing? Variance Analysis focuses on Are we following the plan? An audit assesses I
s the plan working?
Which information gathering technique is usually performed by a multi-disciplina
ry set of experts not on the project team under the leadership of a facilitator?
A. Brainstorming...---> Right answer
B. Delphi technique
C. Monte Carlo analysis
D. Root cause identification

Choices 'A', 'B', and 'D' are all information gathering techniques used in Ident
ify Risks, but brainstorming is the only one that fits the description. The Delp
hi technique is not done under the leadership of a facilitator, and although roo
t cause identification has some similarities, it is not as good of a match as br
ainstorming. Monte Carlo analysis is not a good choice here since it typically d
oes not involve a team.
You have just finished a thorough Monte Carlo analysis for your project. Which o
f the following would the analysis MOST likely identify?
A. Divergent paths causing risk
B. Points of schedule risk...---> Right answer
C. Points of schedule conflict that lead to risk
D. Gaps in the project path that could create risk

One of the things Monte Carlo analysis would show you is where schedule risk exi
sts on the project. 'A' is incorrect because it is typically convergent and not
divergent tasks that create schedule risk. 'C' is incorrect because it is not lo
oking for schedule conflicts - those would be corrected in Develop Schedule. 'D'
is incorrect because gaps in the project path do not, by themselves, cause risk
.
Your project team has completed identifying risks that might impact the new proj
ect. Some time and effort have gone into performing qualitative risk analysis, a
nd the risk register has been updated with the results. The project team members
have all suggested next steps to help quantify each risk. Which team member's s
uggestion would be the BEST next approach?
A. Carry out SWOT analysis and document the total SWOT score for each risk
in the risk register.
B. Perform a risk urgency assessment for high-impact risks.
C. Compute the dollar impact of each risk event using expected monetary val
ue analysis....---> Right answer
D. Use the technique of Monte Carlo analysis to categorize the risks relati
ve to expected risk expenses.

The best next step is to quantify each identified risk using one of the tools or
techniques described for Perform Quantitative Risk Analysis. 'C' describes comp
uting the expected monetary value - that's a valid tool of this process. (PMBOK
11.4.2) 'A' is incorrect as SWOT analysis relates to identifying risks. 'B' is a
great idea but should be performed during qualitative risk analysis. According
to the question, that process is complete, so 'B' is incorrect. 'D' is a bogus i
dea - Monte Carlo analysis is not a tool used as described for this process of q
uantitative risk analysis.
What will likely happen to the number of risks in the Risk Register?
A. It increases as the project progresses....---> Right answer
B. It decreases as response plans are developed
C. It probably will neither increase nor decrease
D. The number doesn't change but the amount of information for each risk wi
ll likely increase.

You will have the most risk at the beginning of the project, but will continue t
o identify new risks (Identify Risks) throughout the life of the project. Theref
ore, the number of risks will increase over the life of the project. As response
plans are developed, those plans are added to the Risk Register, but the risks
are not removed when a response plan has been developed.
Of the following lists, which most correctly reflects the input, tool, and outpu
t flow when monitoring and controlling risks?
A. Work performance information, variance and trend analysis, approved chan
ge requests
B. Risk register, risk audits, risk register updates....---> Right answer
C. Performance reports, work performance measurement, change requests
D. Risk register, risk reassessment, status meetings

'A' is incorrect because 'approved' change requests would be an output of Perfor


m Integrated Change Control. 'C' is incorrect because work performance measureme
nts are outputs of Control Scope, Control Schedule, and Control Costs, but never
a tool. 'D' is incorrect because status meetings are not an output but rather a
tool of this process. 'B' represents the proper, logical flow of Risk register
(input), Risk reassessment (tool), and Risk register updates (output).
What is the BEST source of information about potential risk on your project?
A. Computer risk analysis
B. Interviews with team members from other projects
C. Historical records from similar projects....---> Right answer
D. Your own experience in this industry

Historical records from similar projects would provide you with the best source
of information on potential risks. 'A', 'B', and 'D' are all good inputs or tool
s, but they would not be as pertinent or helpful as the records from other simil
ar projects. Historical information gets brought into your planning processes as
an organizational process asset.
Linda has just carried out a contingency plan in response to a risk that occurre
d on the project. She's determined that the contingency plan did not work as wel
l as the team assumed it would. Looking at the risk register, Linda notices 7 ot
her possible risks that have a similar contingency plan. She is concerned - what
should Linda do?
A. Issue a change request to investigate a better response plan for the 7 r
isk events.....---> Right answer
B. Scrap the risk register and perform the analysis again.
C. Reassess the potential impact and likelihood of these 7 risk events.
D. Request that the project manager schedule a meeting with the sponsor to
go over her findings.

We all agree that Linda needs to do something! She's learned valuable informatio
n that needs to be worked into the project plans. 'A' is the best course of acti
on: request a change. A response plan has been established for this risk; the te
am needs to come up with a better plan. 'B' is incorrect - we don't need to thro
w out the entire risk register! 'C' is not on point either. The concern is not o
ver the impact or likelihood of the risk events; it's the response plan that is
subpar. 'D' sounds nice, but is not necessary at this point. Request the change
to the response plan. If that is approved, then the PM will assign resources to
investigate further.
You are managing a team developing a software product. You have contracted out a
portion of the development. Midway through the project you learn that the contr
acting company is entering Chapter 11. A manager from the subcontracting company
assures you that the state of the company will not affect your project. What sh
ould you do FIRST?
A. Perform additional risk response planning to control the risk this situa
tion poses......---> Right answer
B. Stop all pending and future payments to the subcontractor until the thre
at is fully assessed.
C. Contact your legal department to research your options.
D. Meet with senior management to apprise them of the situation.

The first thing you should do is to plan for the new risks this situation presen
ts. Remember that you should look for a proactive approach to almost everything.
'B' is incorrect because you cannot simply decide to withhold payment if you ar
e in a contractual relationship. 'C' is incorrect because even though that may b
e something you would do, it is not the FIRST thing you should do. 'D' is also n
ot the FIRST thing you should do, because this problem should be dealt with by t
he project manager. Running off to apprise senior management of the situation wo
uld not be the first thing a project manager does. It would be far better to do
that after the project manager had assessed the situation and planned thoroughly
for it.
During which process is the project team most likely to perform a risk urgency a
ssessment?
A. Risk Identification
B. Perform Quantitative Risk Analysis
C. Perform Qualitative Risk Analysis......---> Right answer
D. Plan Risk Responses

The Risk Urgency Assessment is listed as a tool to Perform Qualitative Risk Anal
ysis (PMBOK 11.3.2.5). So, 'C' is the correct answer. This tool helps the team i
dentify those risks that can really doom a project soon - urgent! Indicators of
priority might include how soon this risk event may occur, how easily the team c
an detect the risk, the impact if it were to occur, or the presence of warning s
igns leading up to the risk event. All these might qualify a risk as more urgent
than others and require immediate handling.
During a scheduled review, Phyllis is comparing the risks her team had anticipat
ed to actual numbers her team has compiled. What should Phyllis do with this inf
ormation?
A. Update the risk register with this information.......---> Right answer
B. Create a risk portal for her organization based on this information and
lessons learned.
C. Communicate gaps between planned and actual risks to the stakeholders.
D. Calculate the reserve that remains as a result of any differences betwee
n planned and actual risks.

Although choices 'B', 'C', and 'D' may be good ideas, the one specified in the P
MBOK is that the risk register should be updated with all of the actual results
of anticipated risks.
Which of the following is NOT a tool of Perform Qualitative Risk Analysis?
A. Risk urgency assessment
B. Risk categorization
C. Probability and impact matrix
D. Decision tree analysis.......---> Right answer

Answer 'D' does not fit here - it belongs to the process of Perform Quantitative
Risk Analysis. The 1st 3 answers are tools or techniques of this process of Per
form Qualitative Risk Analysis.
If you are soliciting bids for a project, which of the following would be an app
ropriate outputs from this process?
A. Proposals from potential sellers and a contract
B. Requests for Proposals and source selection criteria
C. A selected vendor and a contract.......---> Right answer
D. A qualified seller list and a statement of work

In order to answer this question, you must first be able to identify in which pr
ocess bids are solicited. It is the Conduct Procurements process, and the primar
y outputs of this process are selected sellers and procurement contract award. '
C' is the BEST answer. 'A' is incorrect because proposals are an input to this p
rocess. 'B' is incorrect because thee items are outputs of the preceding process
, Plan Procurements. 'D' is incorrect because the SOW is an output of Plan Procu
rements and qualified seller list is an input to Conduct Procurements.
The procurement management plan provides:
A. Templates for contracts to be used
B. A formal description of how risks will be balanced within contracts
C. A description of procurement options
D. The types of contracts to be used for items being procured.......---> Ri
ght answer

Contract type selection is a tool used in Plan Procurements. The type(s) of cont
ract(s) used are included in the procurement management plan
Bids are:
A. An output from Plan Procurements
B. An input to Conduct Procurements.......---> Right answer
C. An input to Administer Procurements
D. Not related to the Conduct Procurements process

Even though bids and proposals are not listed as an output from any process, the
y are prepared by someone outside of the organization and used as inputs to the
Conduct Procurements process. Therefore, Answer B is correct.
he procurement department of Contemporary Culinary Countertop Company has contra
cted with Marble Mountain Quarries Incorporated to provide a specified list of m
aterials as well as delivery for a national trade show for custom home builders.
Caroline, the project manager for CCCC, has been notified by the supplier that
the U.S. Geological Survey (in charge since the closure of the US Bureau of Mine
s in 1996) has shutdown their operations due to an impending earthquake resultin
g from the quarry's proximity to a fault line. With contract closure imminent, w
hich statement below is FALSE?
A. If the contract did not specify the treatment of this scenario, CCCC's u
nresolved claims against Marble Mountain Quarries Inc. for non-performance and c
onsequential damages may only be reconciled through litigation.
B. Even though the complete list of materials was not able to be delivered,
per terms in the contract, CCCC will be obligated to compensate Marble Mountain
Quarries Inc. for the partial shipment of materials prior to the shutdown by th
e USGS and subsequent contract closure.
C. Because Caroline's project requirement from Marble Mountain Quarries Inc
. is not going to be met, especially in the last stages of the project so close
to the upcoming national trade show, and also because this trade show is a criti
cal success factor for CCCC's business, Marble Mountain Quarries must subcontrac
t with another quarry to meet Caroline's project requirements before the contrac
t can be considered closed........---> Right answer
D. Because the contract contained a special termination clause related to e
nvironmental constraints preventing performance by the supplier, even to the poi
nt of total default, with no penalties to either party, then Marble Mountain Qua
rries Inc. observance of all notification requirements as spelled out in the spe
cial termination clause leads to a mutual agreement to close the contract.

Focus on the contract terms. Answers 'A,' 'B,' and 'D' ALL conveyed true situati
ons because the terms of the contract specified the mutually agreed treatment in
each case. 'C' is the correct answer to this question since the answer did not
base the requirement to subcontract to another quarry on a clause or term in the
contract. The Close Procurements process may seem small or simple compared to m
any other processes in project management; however, a mistake in a contract and
its subsequent closure can render a project as a failure. PMBOK 4th Edition, sec
tion 12.4
Who does most of the work in Conduct Procurements?
A. The procurement office
B. The project manager and the vendors.......---> Right answer
C. The project team
D. The project manager

In this process, the project manager, perhaps assisted by the team or procuremen
t office, sends out procurement documents, and the vendors respond. In most case
s, the vendors are actually doing the bulk of the work, especially when the prop
osals or bids are lengthy and complex. You could argue for all four answers havi
ng some truth to them, but the fact that Answer 'B' is the only one that include
s the vendors makes it the best choice.
Which of the following definitions best describes a procurement audit?
A. Tool used to determine if the correct quality process is being followed
B. Tool used to verify compliance in the seller's work processes or deliver
ables
C. Tool used to identify successes and failures to improve future contracts
.......---> Right answer
D. Tool used to certify that prospective sellers meet minimum eligibility r
equirements

"C" is the best description of a procurement audit. "A" is referring to the tool
of audits used in the Perform Quality Assurance process. "B" is a very tempting
answer - it describes the tool called "Inspections and Audits" used in the Admi
nister Procurements process to check the deliverables being produced against the
requirements listed in the SOW. The PMBOK Guide differentiates the "procurement
audit" as the actions taken in the Close Procurements process to capture lesson
s learned from the current process to make future contracts more effective. (See
PMBOK Guide p.343) Finally, "D" describes a review of sellers and does not appl
y to the "audit" term specified here.
You are the project manager for a seller who has been selected to construct an i
ndustrial kitchen for a large food services company. Before the contract negotia
tions, the buyer confides in you that design is not finalized, and they want you
to begin work with incomplete specifications. What type of contract should you
ask for in negotiations?
A. Fixed price
B. Cost plus incentive fee
C. Time and materials.......---> Right answer
D. Cost plus fixed fee

The major clue here is that the scope of work is not completely defined and they
want you to begin work anyway. In that case, the project is at a higher risk, a
nd a time and materials contract shifts much of that risk back to the buyer.
Who performs Administer Procurements?
A. The buyer
B. The seller
C. Both the buyer and the seller.......---> Right answer
D. Neither the buyer nor the seller

Both the buyer and the seller perform Administer Procur


Consuela, managing a project with purchasing needs, has received several proposa
ls from would-be suppliers for her company's project. Working with her company's
procurement department, Consuela has made a vendor selection decision. Which of
the following would NOT be a result of Consuela's supplier selection decision p
rocess?
A. A purchase order
B. A mutually binding legal agreement that obligates the seller to provide
product and obligates the buyer to pay the seller
C. Change requests to the project management plan
D. A bidders conference to communicate fairly the decision results.......--
-> Right answer

Answers 'A,' 'B,' and 'C' are all valid possible results of the Conduct Procurem
ents process. 'A' would be a purchase order to the selected seller. 'B' is the d
efinition of a contract between Consuela's company and the selected seller. 'C'
is valid because schedule changes or budget changes may be a result of the agree
ment between Consuela's company and the selected seller. 'D' is the correct choi
ce for this question; a bidders conference is used to provide information fairly
to each would-be vendor to enable their development of proposals. The bidders c
onference would not be necessary to communicate the actual seller selection deci
sion.
Marc is closing a project, and as part of that is gathering up the status report
s that a sub-contractor sent. He is filing the reports with the project's histor
ical records. What process created these status reports?
A. Report Performance
B. Close Procurements
C. Administer Procurements.......---> Right answer
D. Distribute Information

Status reports are procurement documents, and these are an output from the Admin
ister Procurements process (Answer 'C'). The process of Report Performance (Answ
er 'A') refers to reporting the status of Marc's project - not the sub-contracto
r's performance against the contract. Answers 'B' and 'D', Close Procurements an
d Distribute Information, sound like possibilities, but do not match the PMI def
initions for these processes.

Frederick is leading a software conversion project for the financial institution


that employs him. His organization has been burned by suppliers in the past, so
Frederick's boss is very concerned that the supplier delivers the terms of the
contract. In fact, Frederick's boss wants him to focus all his time this week so
lely on procurement administration. Which of the following activities should Fre
derick NOT PERFORM this week?
A. Explore the contract for termination clauses and document what portions
of contracted work might be eligible for early termination and what the conseque
nces are in case of early termination.
B. Based on lessons learned thus far in the project, reconstruct portions o
f the contract that describe how the work will be performed........---> Right an
swer
C. Investigate the change control terms of the contract to understand how t
he contract might be amended in the future.
D. Review the invoices and payments made thus far on this contract and dete
rmine how those align with the status of deliverables.

The correct choice for this question is 'B.' In reading the question, you should
get the feeling that Frederick's boss is most concerned with this current contr
act and vendor. Answers 'A', 'C,' and 'D' all involve the current contract and v
endor and can be seen as activities that would put the PM ahead of any bumps in
the future. Frederick is understanding how the contract can be changed, what por
tions can be terminated, and making sure the invoices match up with the work per
formed. Answer 'B' might be useful for future contracts, but rewriting portions
of the contract should be left to others, such as the procurement specialists or
attorneys. (See PMBOK Guide Section 12.3 introduction for more information.)
Which process group creates the contract change control system?
A. Initiating
B. Planning
C. Executing.......---> Right answer
D. Monitoring and Controlling

The contract change control system is defined in the contract, which is created
as an output of the Conduct Procurements process, which is an executing process.
You have been tasked with managing the seller responses to a request for proposa
l issued by your company. The seller responses were numerous, and now you have b
een asked to rank the proposals from highest to lowest in terms of their respons
e. What are you going to use as a means to rank the sellers?
A. Source selection criteria.......---> Right answer
B. Request for quotation
C. Seller response guidelines
D. Seller selection matrix

The source selection criteria will provide the guidelines by which you can evalu
ate and rank responses. The RFQ would not necessarily help you pick the seller,
as it is their proposal that is of interest. 'C' and 'D' were terms that were ma
de up for this question.
A procurement audit is utilized for which purpose listed below?
A. During contract closure, to identify successes and failures for lessons
learned purposes........---> Right answer
B. During contract claims or disputes to build a credible litigation case.
C. During receipt of goods and services to verify that delivery by the sell
er is in line with the planned purchase of the buyer.
D. At any point within a contract when the sponsor has raised an issue with
the seller selection criteria.

Procurement audits are a technique used during Close Procurements to identify su


ccesses and failures that warrant recognition in the preparation or administrati
on of other contracts. These might be called lessons learned. (PMBOK 4th Edition
section 12.4.2.1)
Your project plan calls for you to go through procurement in order to buy a spec
ialty motor for an industrial robot. Because of patent issues, this motor is onl
y available from one supplier that is across the country. After investigation, y
ou believe that you could procure the motor from this company for a price that i
s within your budget. What is your BEST course of action?
A. Revisit the design and alter the specification to allow for a comparable
motor.
B. Procure the motor from this source even though they are the sole source.
........---> Right answer
C. See if the component may be produced in another country, avoiding your c
ountry's patent issues.
D. Take the product out of the procurement management process.

This one may trick some who think that it is wrong to use a sole source. In many
cases it is the only choice. 'A' would not be good since the design has nothing
to do with this. 'C' is not necessary in this case, since the issue is not a le
gal issue. Choice 'D' would be completely invalid since the item is still being
procured outside of your organization.
Part of your project requires choosing, purchasing, and implementing a software
package. Going into this project, your sponsor had directed you to purchase the
package he used at another company. However, you had convinced him of the value
of properly evaluating the packages on the market to make sure that the one he r
ecommended was the best fit. You have since worked with your team to properly ex
ecute all of the procurement processes, creating a thorough set of evaluation cr
iteria, receiving several good proposals from vendors, and evaluating the propos
als against the criteria. As it turns out, the sponsor's recommended package is
not the best choice, based on the evaluations you have done, yet he is insisting
that you follow his recommendation. You have requested a meeting to discuss thi
s in detail and make a final decision. What would be the best prep work for you
to do prior to the meeting?
A. Ask the team to reconsider the evaluation criteria, to see if it can be
adjusted in order to give the sponsor's preferred software a higher score
B. Ask someone at the sponsor's previous company for a list of their evalua
tion criteria and compare it to yours..........---> Right answer
C. Prepare a formal presentation of the process that your team followed
D. Find an advocate of the selected software and have that person attend th
e meeting with you.

All of these sound tempting, when you are faced with this situation on a real pr
oject. The best answer is B, because the heart of the problem is that the sponso
r has seen this software work before in another setting, so you need to understa
nd what is the difference between that setting and yours, if there is any. A is
not a valid choice as you are tampering with the results of the evaluation. C is
not a bad idea, but will not likely address the sponsor's concerns. He is less
concerned with the process you followed than he is the end result of the process
. D is also not a bad idea, but if that is all you do then you are relying on so
meone else to speak for you.
Identify the statement that is FALSE regarding the process of Conduct Procuremen
ts:
A. The goal of the bidder conference is to gather all potential sellers in
a central location so that the buyer can interview the sellers at one time and e
xpedite the selection process...........---> Right answer
B. During this process, your team might find the need to develop a qualifie
d sellers list.
C. A major input to this process are the proposals from potential sellers.
D. Procurement Documents that are outputs of the prior process become input
s to this process of Conduct Procurements.

Answer 'A' sounds temptingly true, but is false. The focus of the bidder confere
nce is on the seller - the sellers are allowed to ask questions of the buyer pri
or to submitting proposals and prior to any seller interviews or demonstrations.
The goal of the buyer is to keep the playing field level, share information to
all sellers, and not provide any seller with an advantage over the others. 'B' i
s a true statement. Your team might have to do the legwork to develop a qualifie
d seller list. This could be useful to your organization in future projects. 'C'
- proposals are the major input of this process. 'D' - procurement documents ar
e an example of an output becoming an input from one process to the next. PMBOK
- 12.2
A project manager is having difficulty getting resources from a functional manag
er. Which of the following would be the MOST appropriate to help resolve this pr
oblem?
A. Senior management ----> Correct answer
B. The customer
C. Key stakeholders
D. The sponsor

It is the role of senior management to resolve organizational conflicts and to p


rioritize projects, and either of those may be at the root of this problem. 'B'
is incorrect since this is a matter internal to the organization, and the custom
er should be buffered from it. 'C' is incorrect since the stakeholders cannot al
ways bring influence to bear inside the organization. 'D' is incorrect since the
sponsor functions much like a customer internal to the organization. The sponso
r does not prioritize projects and would not be the best person to go to in orde
r to sort out an organizational conflict.
f you hear a project manager saying to a customer, We all agree that this projec
t is important. Let's not fight over a few thousand dollars, what conflict resol
ution technique is the project manager trying to use?
A. Smoothing----> Correct answer
B. Problem-solving
C. Forcing
D. Compromising

Smoothing occurs when the person trying to resolve the conflict asks everyone to
focus on what they agree upon and diminishes the items on which there is disagr
eement.
Which of the following statements is the LEAST true regarding collaboration?
A. Collaboration is a preferred method of conflict resolution.
B. Collaboration is working together to address a project challange.
C. Co-location is a requirement for collaboration.
D. Collaboration is more facilitated when multiple aggressors are involved.
----> Correct answer

An aggressor is a destructive team role referring to someone who is openly hosti


le and opposed to a project. 'A' and 'B' are true statements about collaboration
in project management. 'C' is not a true requirement for collaboration, but co-
location would facilitate collaboration. 'D' is the LEAST true statement about c
ollaboration.
Sharon is planning a fairly large project that will involve people from many off
ices around the country. Her sponsor is in San Diego, most of the technical team
is located in Phoenix (except for the team members who work from home), and the
primary customer is in Chicago. Her travel budget is limited by the fact that t
he company has a new focus on reducing travel expenses. What would you recommend
?
A. Sharon should plan a trip early in the project to meet with each of the
groups in their locations. She should include enough money in the budget for a f
ollow-up trip later, or perhaps even a gathering of the team members in a centra
l location..----> Correct answer
B. Because project managers should always follow company policies, Sharon s
hould find ways to work with the team without incurring any travel expense.
C. Virtual teaming is a tool of managing stakeholders, so Sharon should mak
e use of collaborative work tools and conference calls to enable the team to wor
k together effectively.
D. Sharon should plan a nice celebration at the end of the project; everyon
e would travel to a central location, ideally near the customer in Chicago. This
will not only reward the team for a job well done, but will also reinforce the
value of good teamwork for future projects.

This is a very realistic situation for most PMs. You should remember that face-t
o-face communication is always best and that team development should start early
in the project - as soon as you have team members. This makes 'A' the best answ
er. 'C' includes incorrect information. Virtual teams are a tool of Acquire Proj
ect Team, not of Develop Project Team. 'B' is not the right answer because the p
olicy doesn't state that no travel is allowed. Travelling to meet team members,
as well as other stakeholders, is a realistic expense and not an extravagance.
Maslow 's Hierarchy of Needs theory states that:
A. The strongest motivation for work is to provide for physiological needs.
B. Hygiene factors are those that provide physical safety and emotional sec
urity.
C. Psychological needs for growth and fulfillment can be met only when lowe
r-level physical or security needs have been fulfilled..----> Correct answer
D. The greater the financial reward, the more motivated the workers will be
.

This question might have been difficult for you. 'A' is not necessarily true, be
cause Maslow stated that any level of his pyramid provides the greatest level of
motivation when the needs of the levels below have already been met. Thus physi
ological needs such as food and shelter will be the greatest motivator for worke
rs to do a good job when those needs are unmet. But once the lower level needs a
re met, the needs of the next level become the greatest motivators.
The issue log is a tool used in which knowledge area?
A. Integration Management
B. Human Resource Management..----> Correct answer
C. Manage Stakeholder Expectations
D. Communications Management

If you selected 'C' you selected a process to which the issue log is an input. T
he question also asked for a knowledge area. The issue log is a tool used in Man
age Project Team in the Human Resource Management knowledge area.
The project manager is meeting with functional managers to discuss which team me
mbers will be working on specific components of the scope and when they will be
needed, based on the latest version of the project plan. This is an example of:
A. The work authorization system because resources are being allocated to p
erform the work..----> Correct answer
B. The project management information system, because the project manager i
s executing the project plan
C. The configuration management system since team configuration decisions a
re being formally decided
D. Formal verbal communication because the decisions will be formally refle
cted in the project plan

The definition of the work authorization system is the system used to ensure tha
t resources are formally being released to perform work at the right time and in
the right sequence. In this case, a meeting with the resources functional manage
r would qualify as being a system.
he process of identifying, documenting, and assigning roles, responsibilities, a
nd reporting relationships for a project is called:
A. Project Interfacing
B. Organizational Breakdown
C. Develop Staffing Management Plan
D. Develop Human Resource Plan..----> Correct answer

Develop Human Resource Plan is the process of understanding and identifying the
reporting relationships on a project. Included in the output of this process (Hu
man Resource Plan) is the project's organizational chart.
Alex is a project manager who wants to motivate his team by offering them a week
of paid vacation if the project is delivered on time. When presenting this to t
he team, he spends extra time convincing the team that this goal is very achieva
ble. What theory BEST explains Alex's behavior?
A. Expectancy theory..----> Correct answer
B. Contingency theory
C. Achievement theory
D. Stimulus/Response theory

Expectancy theory says that reward motivation will work if the team believes tha
t the goal is achievable.
Which of the following is NOT true of team building?
A. Team agreement should be obtained on all major actions.
B. Team building requires role modeling on the part of the project manager.
C. Team building becomes less important as the project progresses...----> C
orrect answer
D. Teamwork cannot be forced.

Successful team building begins early in project development, but it is a contin


uous process throughout the life of the project.
Herzberg's theory of motivation states that:
A. Hygiene factors must be present for motivational factors to work....----
> Correct answer
B. Motivation to work on the project must be related back to the individual
's need.
C. An individual's higher needs will not emerge until the lower needs are m
et.
D. Individuals are motivated by a desire to reach proficiency.

Herzberg stated that hygiene factors must be present in order for motivational f
actors to work; however, hygiene factors do not motivate by themselves. They onl
y enable the motivation factors to work.
Which of the following is a negative team role?
A. Initiator
B. Information seeker
C. Devil's advocate....----> Correct answer
D. Gate keeper

A devil's advocate is considered to be a negative team role. 'D', a gate keeper,


is incorrect because in project management terminology a gate keeper is someone
that draws non-participants and withdrawers into the process.
Maslow's Hierarchy of Needs theory concludes that:
A. Higher needs cannot be realized until the lower needs are satisfied.....
----> Correct answer
B. Hygiene factors are those that provide physical safety and emotional sec
urity.
C. Psychological needs for growth and fulfillment are ineffective motivator
s.
D. The greater the financial reward, the more motivated the workers will be
.

Maslow's hierarchy is based on the fact that your basic needs, like food and wat
er, must be satisfied before higher needs, such as esteem, will become important
. 'B' is incorrect because Herzberg's theory of hygiene factors is a different t
heory of motivation. 'C' is incorrect because this is a different motivational t
heory. 'D' is related to another theory of scientific management not covered in
PMI's materials.

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