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. An activity has been delayed and the project manager needs to deal with the situation. What is the NEXT thing she should do?

1. Determine how much of a problem it is.
2. Report to management
3. Crash or fast track
4. Use contingency reserves

Q4. The client has given you a project to construct a cold storage plant. Everything was going as planned, however, due to some unforeseen incidents, your project is delayed. The client is in a hurry and has threatened you with a large penalty if you are not able to complete the project on time. So, you started working hard to complete the project and avoid the fine. You are working overtime, bringing in more resources from other projects, and renting extra equipment; finally, you complete the project on time. This is an example of:

1. Critical chain
2. Fast tracking
3. Crashing
4. Resource leveling

Q5. Lesley is managing a software development project for the World Climate Control Organization. Since her team members are dispersed across the globe, she would like to set up online conferences in the next two months to let everyone in her project know what is going on and what their roles are within the project. She wants to use these conferences as team development activities to learn and exchange information in the project. To schedule such activities, which of the following should she use to keep track of the availability of team members?

1. Project charter
2. Resource calendars
3. Responsibility assignment matrix
4. Project staff assignments

Q6. Using the chart, in order to handle some resources changes on your project, activity H is going to be done concurrently with activity G instead of after it. What impact will this have on the project?

1. It will cause the project to be completed four time periods sooner
2. It will cause a decrease in project risk
3. It will have no effect on the critical path
4. It will affect activity
5. 29

Q7. Halfway through the executing process of your project, a team member alerts you to a potential cost overrun for a specific deliverable. What do you do FIRST?

1. Determine the projected actual cost
2. Implement a change control process to track the change
3. Inform the customer.
4. Determine the cause of the overage

Q8. When should the Validate Scope process be done?

1. At the end of the project
2. At the beginning of the project
3. At the end of the each phase of the project
4. During the planning processes

Q9. You realize that you have made an error in your monthly status meeting. Therefore, you send stakeholders the correct report by email. What kind of communication method are you using here?

1. Push
2. Pull
3. Interactive
4. None of the above

Q10. Which of the following is not a Tuckman's team development stage?

1. Confronting
2. Forming
3. Norming
4. Adjourning