Project Management Question Bank
for Exam preparation

Q2. During the identification of risks on your project, you have determined that there is a very high probability of conflict among the team during project executing over one aspect of the final design of the project. Which of the following is an example of mitigating the impact of the risk to the project?

1. Obtain an insurance policy for the anticipated cost of the impact.
2. Outsource that part of the project to another company
3. Provide the team with training on conflict resolution techniques
4. Eliminate that part of the project.

Q3. You have received a proposal for an RFP that was sent to vendors. One of the vendors has proposed doing the project for $12,500. The cost for the project is $10,000, and their profit will be $2,500. Which type of contract is most suitable if the type of work is predictable and the requirements are well-defined and not likely to change?

1. Cost Plus Fixed Fee
2. Cost Plus Percentage of Cost
3. Fixed price
4. Cost Plus Incentive Fee

Q4. You are managing an electronic chip design project for a customer. There are a number of engineers and subject matter experts from the customer’s organization that have been assigned as resources to the project plus several additional design engineers that your company has supplied. All the engineers were involved in the development of a prototype chip, an extremely time-consuming and expensive process. Upon the completion of the prototype, you submit it for review to ensure there are no patent infringement issues with the design. However, the review determines there are several issues that could result in an intellectual property dispute with the patent owners should the prototype design be released commercially. Resources from your company developed the affected prototype elements, as well as from your customer’s organization. What should you do?

1. Ask the engineers to revise the design and resubmit it
2. Notify the project stakeholders immediately
3. Request permission to use the copyright material
4. Submit the prototype as is since the budget and schedule do not accommodate rework

Q5. You are managing a project with a budget of 500,000 USD, and 250,000 USD has been spent. Upon review, you observe that only 40% of the work has been completed. Your schedule says that you should have completed 50% of the work. What is estimate at completion (EAC)?

1. 625,000 USD
2. 500,000 USD
3. 400,000 USD
4. 375,000 USD

Q6. You need to make a major change to the equipment used on the project. You know of a product that meets your needs, but you are worried because your brother owns the company that produces the product. What should you do?

1. Negotiate a good deal for the project with your brother
2. Let the customer know of the issue
3. Submit the bid and allow your brother to negotiate with the contracting office
4. Eliminate your brother from bidding

Q7. You are the project manager for a new international project, and your project team includes people from four countries. Most of the team members have not worked on similar projects before, but the project has strong support from senior management. What is the BEST thing to do to ensure that cultural differences do not interfere with the project?

1. Spend a little more time creating the work breakdown structure and making sure it is complete
2. As the project manager, make sure you choose your words carefully whenever you communicate
3. Ask one person at each team meeting to describe something unique about their culture.
4. Carefully encode all the project manager’s communications.

Q8. The sponsor of a project created a document that included the business need and the cost-benefit analysis. What would this document be termed as?

1. The project statement of work
2. The business case
3. The project management plan
4. The contract

Q9. To reduce delivery delays and process downtime, your organization has recognized a need to replace their legacy manufacturing system with a modern software application. Your IT director anticipates a project to fulfill this business need; however, he warns that the new project’s budget cannot exceed $75,000 due to shortages in the department budget. He also indicates that no additional staff will be allocated to this project other than the existing IT staff. If you become the project manager, you would document these initial project conditions as:

1. Project assumptions
2. Business case
3. Project constraints
4. Enterprise environmental factors

Q10. Which of the following would be the MOST appropriate thing to do during the executing process group?

1. Forecast when the next milestone will be completed.
2. Recommend updates to the project management plan.
3. Recalculate how long the project will take.
4. Determine if project controls need to be updated.