Project management

1. According to the Project Management Institute, project management is defined as “the application of
knowledge, _____, _____, and techniques to project activities to meet the project requirements”.
a. skills, analysis
b. tools, analysis
c. skills, tools
d. skills, theories

2. As a project manager, Tyler is so happy that all expected project deliverable have been accomplished by his
project team. What is the next step for his project to proceed in order to verify the project scope by his project
client?
a. Ask his client to pay for the completed project deliverables.
b. Award all of his project team members for such a great accomplishment.
c. Offer a party for his project team and client to celebrate the success of the project.
d. Ask his client to conduct an inspection on all of the completed project deliverables.

3. What is the first step in project planning?

a. Establish the objectives and scope.
b. Determine the budget.
c. Select the team organizational model.
d. Determine project constraints.

4. While assessing your project processes, you have identified some uncontrolled process variations. Which of
the following would be the appropriate chart you may use for this purpose?
a. Pareto diagram
b. PERT chart
c. Control chart
d. HR personnel chart

5. Once the project is approved and moves into the planning stage, what happens in the next phase of the project
life cycle?
a. Agreements for risk sharing need to be concluded.
b. The total risk on the project typically reduces as activities are performed without loss.
c. Risks must be weighed against the potential benefit of the project’s success in order to decide if the project
should be chosen.
d. Risks are identified with each major group of activities.
6. Risk must be considered in the _____ phase and weighed against the potential benefit of the project’s success
in order to decide if the project should be chosen.
Select one:
a. completion
b. initiation
c. execution
d. planning

7. Due to the rapid expansion of your company, your boss decides to establish a project management office
(PMO) within the company and asks you to take the lead. According to the PMBOK guide, to be the ideal PMO
you can do which of the following?
a. Speed up a specific ongoing project.
b. Reduce the assigned resources to existing projects.
c. Reassign the resources that have been assigned to ongoing projects.
d. Find opportunities for collaborative project management.

8. Why does the creation of processes for developing teams, establishing priorities, and distributing work and
tasks require different sets of skills?
a. Because resources on the project management team may view it as permanent
b. Because resources on the project management team may view it as temporary
c. Because resources on the project team are not aware of the technical aspects of the initiative
d. Because members of the project management team are not aware of the knowledge and skills of the other
people working on the project

9. According to Bruce Tuckman’s five stages of team development, project team members compete for control
at which stage?
Select one:
a. Forming
b. Storming
c. Norming
d. Performing
e. Adjourning

10. The project management office (PMO) handles all of the following functions EXCEPT:
a. maintaining the organization’s project management policies and procedures.
b. supervising the project managers.
c. assigning project managers from other departments but not procuring contract project managers.
d. monitoring project performance. e. providing functional support to projects like project scheduling and
project cost analysis

11. Under which of the following conditions would teams be more effective than individuals?
a. When speed is important
b. When the activities involved in solving the problem are very detailed
c. When the actual document needs to be written
d. When innovation is required

12. Which of the following is the process of understanding the knowledge, skills, and abilities needed to
manage a task and then matching the team members with the right skills to do that work?
a. Delegation
b. Expediting
c. Procurement
d. Benchmarking

13. Which of the following defines what tasks the project resources are expected to accomplish and, just as
importantly, what is not part of the project team’s responsibilities?
a. Punch list
b. Check sheet
c. Project logic diagram
d. Scope document

14 .There is _______ correlation between project complexity and project risk. Select one:
a. an unknown
b. a positive
c. no
d. a negative
16. As a new project manager, Karen was worried about a statement from her client: “your project deliverable is
in low quality with low grade”. According to PMBOK, how can you help Karen distinguish the differences
between “quality” and “grade”?
a. Quality and grade represent the same thing.
b. Low quality can never be a problem, but low grade is.
c. Low quality represents a true problem, but low grade might not be the case.
d. Low quality with high grade is always desirable to your client. e. High quality always represents high grade.
17. Complete the following statement. As a project manager, Darrell is excited that he is assigned to be in
charge of the most important project this year. After being chartered for the project, he analyzes the information
in the project charter and the stakeholder register to:
a. decide how to draft a scope statement.
b. start to define and develop the stakeholder needs and requirements.
c. prepare for the template to monitor project progress.
d. estimate the entire project budget.

18. After Ling finished drafting a new project charter, she sent a copy of the charter to all key project parties
including the project sponsor, senior management and key stakeholders, and scheduled a kick-off meeting with
them. What will be the most important goal for Ling to complete the project charter?
a. Make a professional looking project charter to impress the key project parties.
b. Get confirmation from the key parties that they have read the charter.
c. Invite the key parties for a nice lunch to establish a friendly relationship.
d. Obtain officially signed project charters from the key parties.

19. Fill in the blank. During the _________ of a project, the project manager focuses on developing the project
infrastructure needed to execute the project and developing clarity around the project charter and scope.
a. completion
b. start-up
c. execution
d. evaluation

20. A project budget estimate that is developed with the least amount of knowledge is known as which of the
following?
a. Rough order of magnitude (ROM) estimate
b. Scope of work estimate
c. Conceptual estimate
d. Line estimate

21. What is the first step in developing a risk management plan?

a. Analyze the risks.
b. Estimate the likelihood of the risks occurring.
c. Identify potential project risks.
d. Develop a risk mitigation plan.
22. According to the PMBOK guide, which of the following statements is right in terms of using reserve
analysis to determine a project budget?
A. Reserve analysis always plans contingency reserves for unexpected project scope and project costs,
which are part of your project budget.
B. Reserves should not be included in the project budget.
C. If you only have limited resources, you may completely ignore reserve analysis when you try to determine
your project budget.
D. Planning contingency reserves for a project is not practical.

23. Complete the following statement. As the project progresses into the execution phase:
a. risks need to be checked off on activities that have been performed.
b. the total risk on the project typically increases.
c. risks are identified with each major group of activities.
d. a risk response plan can be used to identify increasing levels of detailed risk analysis.

26. What is considered to be the most useful skill for a project manager who works in a matrix environment in
order to achieve project goals?
a. Leadership skill
b. Influencing
c. Conflict management skill
d. Time management

24. Which of the following statements about achieving a common understanding of the project purpose is true?
a. A common understanding means building a consensus and disagreement regarding a project’s purpose is
often fatal to project execution.
b. Developing a common understanding involves defining project success, determining potential barriers
to success, establishing milestones, and identifying decision-makers.
c. The methods and processes employed to develop a common understanding depend on the duration of the
project.
d. Irrespective of the complexity of the project, developing a common understanding usually involves informal
discussions that last a few hours.

25. Which of the following is typically a written document that defines what work will be accomplished by the
end of the project?
a. Scope of work (SOW)
b. Project logic diagram
c. Milestone schedule
d. Ballpark estimate

27. Marco is an investor, and Jon is a project team member. Both have intensive technical background for the
project that you are managing. However, recently they have disagreed on the next step to take for the project.
They both decide to defer to whoever has the authority to make this decision. Who has the authority to decide
which direction should be taken for the project?
a. Project manager
b. Stakeholders
c. The project team
d. Investors

29. Which of the following is a quality management system that gives titles to specialists and requires a cost-
benefit analysis?
Select one:
a. Six Sigma
b. Business process re-engineering
c. Kaizen
d. Total Quality Management

30. Which one of the following is the last step of project closings?
a. The client has accepted the product.
b. Archives are complete.
c. The client appreciates your product.
d. Lessons learned are documented.

31. As a project manager of Project Cool at the company, Samira is responsible for monitoring and controlling
two project management processes: process A and process B. She recently noticed a high priority risk X has
been imposed on her project process A in Project Cool. While she tried to control the risk X, she also noticed
that a new potential risk Y will be added to process B. Which of the following best explains this situation?
a. If risk Y happens, then it is all Samira’s fault, because she did not do a good job of carefully monitoring the
risks for Project Cool.
b. This is common in practice. Risk Y is a secondary risk caused by Risk X.
c. The potential risk might happen, but Samira can ignore risk Y, as risk X takes higher priority.
d. Samira is not experienced enough for handling risk management, so her boss will probably fire her.
e. Risk Y is called a low priority risk, which is not considered to be a real concern, so Samira should not worry
about risk Y.

32. Roberto is in charge of a new project to help Company A upgrade its old HR system to a cutting-edge,
cross-platform system with the most recent mobile technologies. After his project team assessed the available
system documentations, the team found the existing documentations too large and complicated to implement the
system updates. Roberto advised his team to decompose the major project deliverables into more executable
components. In this project process, Robert advised his team to do which of the following?
a. Document requirements
b. Create WBS
c. Define project scope
d. Verify project scope
e. Plan project milestones

33. Complete the following statement. In a weak matrix environment, the project manager, Eric, has to
constantly make an effort to influence his project team and stakeholders to ensure project success. This is
because:
a. Eric has a lot of authority.
b. Eric has no or little authority.
c. Eric is controlled by his functional managers.
d. there are no functional managers.
e. Eric has flexibility on authority.

34. Jack is in charge of a project team. Due to an unexpected project change, some issues with the project have
come up. Two key team members, Samantha and Felix, are arguing their solutions to the project problems.
They cannot convince each other, and their conflict is creating a negative impact on the project’s progress. As a
PMP, which of the following would be the best advice for Jack to manage this conflict?
a. Confront the problem early, and invite both Samantha and Felix to private meetings.
b. Force Felix to give up and to support Samantha.
c. Suggest that Samantha concede to Felix.
d. Let Felix and Samantha exercise their concerns through conflict resolution.
e. Delay this issue for now until it becomes a significant conflict.

35. Ahmed is actively initiating a project, so he plans to invite all relevant internal and external stakeholders
including sponsors, customers, project teams, etc. for a kick-off meeting. To ensure all of them are covered in
the stakeholder register, which document is the most helpful for Ahmed to look at?
Select one:
a. Project team activities
b. Scope statement
c. Project charter
d. Work packages
e. Project funding agents

36. Which of the following is a personal characteristic that reflects the truthfulness of an individual that can be
checked against observable facts?
a. Objective credibility
b. Attribution of benevolence
c. Non-manipulative trust
d. High cost of lying
e. Acknowledgment of munificence

37. When a project manager starts to plan a new project budget, the cost of which project management process
group is expected to be lowest?
Select one:
a. Initiating
b. Executing
c. Monitoring and controlling
d. Closing

39. As a project manager, John was finally relieved because a major project led by him was just announced a
success. According to the PMBOK, which of the following has likely happened in order to consider John’s
project a success?
a. John’s project has met all of the stakeholders’ expectations.
b. The phase completion of John’s project has been approved.
c. John’s client has paid off the project.
d. John and his team are promoted and get salary increases.
1. Which one of the following is captured in the Work Breakdown Structure (WBS)?
A. The life cycle phases
B. The logical order of tasks
C. The scope of the project
D. Project costs

2. Which stage of project management life cycle requires the maximum time of completion
A. Conceptualization
B. Planning
C. Execution
D. Estimation
3. .In Project management when does planning take place?
A. Before the project
B.During the project execution
C. At the start of the project
D. After the project

4 .In the initial stage of the project the probability of completing the project is ___ .
A. Zero
B. High
C .Low
D. Medium

5. Which one is a true statement relating to project communications?

A. A project sponsor is responsible for all communication methods and media.
B. Different stakeholders typically have different communication needs.
C. It is best to have a standard set of project reports used for every project.
D. Email is the only way to communicate with large numbers of people.

6. The particular task performance in CPM is known

A. Dummy
B. Event
C. Activity
D .Contract.
7. The critical path
A. Is a path that operates from the starting node to the end node
B.Is a mixture of all paths.
C.Is the longest path
D.Is the shortest path

8.Free float for any activity is defined as the difference between

A. its earliest finish time and earliest start time for its successor activity
B. its latest start time and earliest start time
C. its latest finish time and earliest start time for its successor activity
D. its earliest finish time and latest start time for its successor activity

9. The time with which direct cost does not reduce with the increase in time is known as
A. crash time
B. normal time
C. optimistic time
D. standard time

10. The time corresponding to minimum total project cost is

A. crash time
B. normal time
C. optimistic time
D. between normal time and crash time

11. Project crashing is the method for -------------

A. Shortening the project duration by reducing the time of one or more critical activities
B. Adding resources at critical points
C. Doing technical analysis of the finished work for review
D. Adding duration to each activity

12. Feasibility study determines -----------------

A. Whether the project is possible with resources
B. Comparing the project with world class manufacturing norms
C. Calculate the cost crashing each unit
D. Add duration to each unit
13. What is a cash flow table in project management?
A. A table portraying inflow of cash in a project
B. A table portraying outgoing expenses of a project
C. It is the tool that is used to study such cash flows by breaking inflows and outflows down,
usually on a monthly basis
D. A table portraying debts taken for a project

14. A project has a Profitability Index of 1.30. What does it mean?

A. The NPV is less than zero
B. The payback period is more than one year
C. That the project returns Rs 1.30 for every Re 1 invested in the project
D. That IRR is 1.30 times that of the Hurdle Rate

15. If there is no inflation during a period, then the Money Cash flow would be equal to
A. Present Value,
B. Real Cash flow,
C. Real Cash flow + Present Value,
D. Real Cash flow - Present Value

16. Real rate of return is equal to:

A. Nominal Rate × Inflation Rate,
B. Nominal Rate ÷ Inflation Rate,
C. Nominal Rate - Inflation Rate,
D. Nominal Rate + Inflation Rate

17. The criteria for acceptance of a project on the basis of Profitability Index (PI) is
A. PI=0
B. PI > 0
C. PI < 0
D. PI > 1

18. In Project crashing, rent and overheads are treated as

A. Significant Cost
B. Insignificant costs
C. Direct Costs
D. Indirect Costs
19. For an activity in a CPM analysis, the early Finish time is 13 and the late Finish time is
13. Duration of activity is 6. Which of the following statements is true?
A. The early start is 6
B. The duration of the activity is 13
C. The slack of this activity is 13
D. The activity is on the critical path

20. Independent float is the amount of time by which:

A. Start of the activity can be delayed without affecting the EST of subsequent activity
B. reduces the float of subsequent activities
C. completion of an activity can be delayed beyond EFT without affecting EST
D. completion of an activity can be delayed beyond earliest possible finishing time

21. PERT (Project Evaluation and Review Technique) analysis is based on

A. Optimistic time, Pessimistic time and Most likely time
B. Pessimistic time, Optional time, Maximum time
C. Optimistic time, Efficient time, Most likely time
D. Minimax time, Optimistic time and harmonic time

22. Risk in project management is defined as

A. An uncertain event that, if it occurs, has a positive effect on project objectives
B. An uncertain event that, if it occurs, has a negative effect on project objectives
C. An uncertain event that, if it occurs, has a positive or negative effect on project objectives
D. An uncertain event that do not have any effect on project objectives

23. In PERT (Project Evaluation and Review Technique) method Expected time (Te) is
A. (To+Tp+4Tm)/6
B. (To+Tp+2Tm)/6
C. (To+Tp+Tm)/6
D. (Tm+Tp+4To)/6

24. Risk Event Graph is having following on X axis

A. Gantt Chart
B. Work Break Down Structure
C. Project Life Cycle
D. Splitting
25. Which risk is connected to the circumstance outside the project that may influence the scope of work and
the performance of the organization?
A. Operational Risk
B. Financial Risk
C. Strategic Risk
D. Contextual Risk

26. The numbering of the nodes in A-O-A is done

A. From left to right
B. From Right to Left
C. Randomly
D. On the basis of the duration of the activity

27. Which of the following is not the part of Risk Control

A. Execution of the risk response strategy
B. Monitoring of triggering events
C. Initiating contingency plans
D. Not watching for new risks

28. Conflict occurrence in projects is

A. Unavoidable
B. Depend on type of project
C. Avoidable
D. Depends on culture

29. Outsourced projects are susceptible to conflicts as

A. People get less pay in these projects and work is more
B. More work pressure and less time horizon
C. These projects are away from home location
D. People are unaccustomed to working together and have different values

30. Who creates the project team?

A. Factory manager
B. Operation manager
C. Project manager
D. Purchase Manager
31. Project Manager must ensure that it develops appropriate trade off/s as
A. Time, cost and performance
B. Time, value and performance
C. Men, Materials and Machines
D. Money, Cost and Return on Investment

32. Who orchestrate the completion of the project by inducting the right people at the right time to address the
right issue and make the right decisions?
A. Project Coordinator
B. Project Manager
C. Operations Manager
D. Strategic Business Unit Head

33.In which stage of team development, team members are worried about how they fit in with
the others and how their capabilities and skills compare.
A. Norming
B. Storming
C. Forming
D. Performing

34 Which of the following represents the estimated value of the work actually accomplished?
A. Earned value (EV)
B. Planned value (PV)
C. Actual cost (AC
D. Cost variance (CV)

35. A schedule performance index (SPI) of 0.76 means:

A. You are over budget
B. You are ahead of schedule
C. You are only progressing at 76 percent of the rate originally planned
D. You are only progressing at 24 percent of the rate originally planned

36. A cost performance index (CPI) of 0.89 means:

A. At this time, we expect the total project to cost 89 percent more than planned
B. When the project is completed we will have spent 89 percent more than planned
C. The project is only progressing at 89 percent of the rate planned
D. The project is only getting 89 cents out of every dollar invested

37. The cash inflows and (outflows) associated with a project are as follows: At start (120000) , Year1-40000,
Year2-50000, Year3-60000, Residual Value(at the end of 3rd year)-20000. The payback period for this project
would be:
A 2 years and 3 months.
B 2 years and 6 months.
C 3 years.
D 2 years.

38: A Firm is considering undertaking a project that would yield annual profits (after
depreciation) of Rs 68,000 for 5 years. The initial outlay of the project would be Rs 800,000
and the project's assets would have a residual value of Rs 50,000 at the end of the project.
What would be the accounting rate of return for this project?
A 16%
B 8.5%
C 8.0%
D 9.1%

39.A firm is about to undertake a project and has computed the NPV of the project using a
variety of discount rates:
Discount Rate used NPV
10% 130
15% 50
20% -50
What is the approximate IRR of this project?
A 20%
B 17.5%
C 15%
D 22.5%

40. A project has a 60% chance of a $100,000 profit and a 40 per cent of a US $100,000 loss.
The Expected Monetary Value for the project is
A. $100,000 profit
B. $60,000 loss
C. $ 20,000 profit
D. $40,000 loss

41. In a payback period method of project evaluation and appraisal the project with
……………….or equal to cut off period will be accepted.
A. More than
B. Less than
C. Positive
D. Negative

42. A project with total budget cost of 30 crores is scheduled to be completed in 80 weeks.
A periodic review was carried out at end of 60 weeks and results are as given:
Budgeted cost of work performed (EV) = 17 crores
Actual Cost of work performed (AC = 19 crores
Budgeted cost of work scheduled (PV) = 21 crores
What is the cost performance index?
A.0.895
B.0.81
C.0.90
D.1.12

43. In which of the following cases project is in better shape?

A. When both CPI and SPI are less than 1
B. When CPI is more than 1 and SPI is less than one
C. When CPI is less than one and SPI is more than one
D. When both CPI and SPI are more than one

44. A company is considering investing surplus funds in a project. Calculate the NPV at 10 % discount rate for
the following data
Project Year 0 Year 1 Year 2
A (100) 100 100
A. 73.5
B. 173.5
C. 273.5
D. 100
45. Amount of work completed to date compared with planned in the Earned Value Management method is
A. Schedule Performance Index
B. Cost Performance Index
C. Percentage Complete
D .Percentage Spent
46. The budgeted cost for all the activities in a project with the help of Earned Value Method is
A. Actual Cost
B. Budget at completion
C. Budget for completion
D. Estimate at completion

47. The payback period is the period

A. a project takes to pay back the loan taken to purchase the capital assets
B. equal to the useful life of the machines
C. a project takes to recover its initial cash outflow
D. over which the project will be getting operating cash inflows

48. Net Present Value of a machine is

A. PV of cash inflows less cost of investment
B. PV of cash inflows ÷ cost of investment
C. PV of net profit after tax less cost of investment
D.PV of cash inflows less average cost of investment

49. If you would like to see a list of resources and the tasks that people are assigned to. What view best displays
this information?
A. Resource Sheet
B. Task Usage
C. Gantt Chart
D.: Resource Usage

50. What is the default view of a new project in MS project?

A. Gantt View
B. Resource Graph
C. Network View
D.: Workbook View