Project Management Question Bank
for Exam preparation

Q2. The banks in the Ukraine have raised the annual interest rates sharply to 30 percent. You have the option to invest your money either in Ukrainian banks or to build a small factory for a client. The total cost of building the factory will be $12 million but it will spread evenly over one year ($1 million payable by the end of each month for the next 12 months). The client will make a payment of $3.9 million at the end of each quarter from the start of the project. Which of the following is the best option (if you are only considering the return on investment)?

1. Build the factory for the client
2. Invest the money in the bank for a year
3. Both options offer the same payoff
4. Information given is insufficient to determine the best option

Q3. Which of the following should you not use as an input into creating the WBS structure?

1. Bill of Material (BOM)
2. Project scope statement
3. Organizational process assets
4. Requirements documentation

Q4. Which of the following is one of the most prominent features of a project following agile approach for product development?

1. Produce defect-free deliverables
2. Zero tolerance for rework
3. Deliver incremental value to the customer
4. Delivery of the product in a single sprint

Q5. You are managing a complex submarine causeway construction project. When you started the project, the scope of work was not clear and was based on a rather high-level estimate. Now that you are in the middle of the project, more information has become available. As a result, you now need to change some of the key subcontracts on the project. Which of the following will guide you through the change process?

1. Change control terms of the individual subcontracts
2. Project management plan’s change control procedures
3. Organizational process assets
4. Supplier’s contract administrator

Q6. Which of the following BEST describes what a project charter may be used for when the work is being completed?

1. To make sure all the team members are rewarded
2. To help determine if a scope change should be approved
3. To assess the effectiveness of the change control system
4. To make sure that all the documentation on the project is completed

Q7. As a project manager, you are presented with the following information on the net present value (NPV) of several potential projects. Which project is your BEST choice?

1. Project A with an NPV $95,000
2. Project B with an NPV of $120,000
3. Project C with an NPV of $20,000
4. Project D with an NPV of -$30,000

Q8. A project manager holds a meeting with his manager to explain that an activity has been delayed and the project manager will need additional resources to complete the project. The manager stops the meeting because the project manager has forgotten something. What might it have been?

1. To investigate undoing previous fast tracking activities
2. To try to compress the project schedule before asking for additional resources
3. To look for options with the customer before meeting with management
4. To eliminate float in the near-critical path

Q9. ___________________ is performed on risks that have been prioritized by the Perform Qualitative Risk Analysis process as potentially and substantially impacting the project's competing demands.

1. Perform Risk Cost Analysis
2. Perform Risk Exposure Analysis
3. Perform Quantitative Risk Analysis
4. Perform Risk Outcome Analysis

Q10. During the Collect Requirements process, a group of people were discussing multiple alternatives. One of the individuals in the group made the decision for the group. This method of reaching a group decision is termed:

1. One Thinking Hat
2. Autocratic
3. Plurality
4. Autonomy