Project Management Question Bank
for Exam preparation

Q2. You are working on a new oil purification project in a foreign country. A person informs you that you will have to pay him a “transfer fee” for the permit to move heavy equipment through the city. What is the FIRST thing you should do?

1. Pay the fee, but only to the city
2. Do not pay the fee
3. Make sure the person is really a government official
4. Negotiate openly with the city officials.

Q3. The project team is working on an important and complex project that requires a lot of coordination. Under these circumstances, the BEST strategy is to:

1. Have a war room
2. Hire a contractor
3. Hold more meetings to get the word out
4. Gain extra assistance from management

Q4. The project has been going well, except for the number of changes being made. The product of the project is being installed into seven different departments within the company and will greatly improve departmental performance when operational. The team has selected the appropriate processes for use on the project. The project manager is a technical expert as well as having been trained in communications and managing people. Which of the following is the MOST likely cause of the project problems?

1. The project manager was not trained in understanding the company environment.
2. The project should have more management oversight since it will result in such great benefits to the company.
3. The project should have used more of the project management processes.
4. Some stakeholders were not identified.

Q5. A project is contracted on a Cost-Plus-Fixed-Fee (CPFF) basis with a fee of 10 percent of estimated costs. The estimated cost is US$50,000. If the project comes in at US$75,000 with no changes in project scope, what would be the total cost of the contract?

1. US$55,000
2. US$125,000
3. US$75,000
4. US$80,000

Q6. Laurence is the PMO manager at ANZ Company. The CEO of the company asked Laurence to review the business requirements and develop the current year’s capital management plan. The capital management plan will outline the key business deliverables (capital projects) and will go to the board for final approval. Which of the following organizational artifacts should Laurence review to analyze the business requirements for the current fiscal year?

1. Lessons Learned
2. Capital budget for the current year
3. Organizational Process Assets
4. Organizational Strategy

Q7. 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

Q8. The Requirements Traceability Matrix helps in tracing all the following except:

1. Requirements to project objectives
2. Requirements to project scope
3. Requirements to test strategy
4. Requirements to project risk

Q9. You are a project manager for an automotive parts company. Your organization was hired to produce clutches for an exotic car company. This will involve the design and production of custom clutches. During the course of the project, as you review a quality control statistics chart that examines every clutch produced for the month, you notice several cases where the spring component of the clutch is expanding with too much force and is falling outside the upper control limit. Which type of Quality Control tool are you most likely using?

1. Control charts
2. Statistical Sampling
3. Cause-and-Effect diagram
4. Precedence Diagramming Method

Q10. Though it was difficult, the project manager received agreement to the project charter from all four sponsors involved on the project and the US $400,000 project was approved. Now the cost variance for the project is -$500 and the last performance review was positive. Just when the project entered its second phase, a team member on a noncritical path activity announced she was leaving the company. The float of activity L changed from two to four days. Only one unidentified risk has occurred with a minor impact. The last quality review showed that the project has made use of the results of the last design of experiments. Based on this information, what should the project manager do NEXT?

1. Complete closure of the first phase
2. Fast track the project to add more float
3. Review the management plans
4. Investigate additional risks caused by the difficulty with the senior managers.