Project Management Question Bank
for Exam preparation

Q2. Maintaining good supplier relationships should be important to all project managers. A good buyer-seller relationship is a partnership that results in a win-win situation that nurtures both parties. Which of the following is both a short- and long-term benefit of treating a supplier with courtesy, honesty, and fairness?

1. There is no need to have formal contracts in place
2. Delivery of quality products and services at the best price
3. The buyer can delay the payments without jeopardizing the relationship
4. The supplier can charge a price higher than the market price

Q3. A project is facing the following risks: 20 percent chance a part is not available, creating an additional fee of US $30,000; 10 percent chance the team requires additional training for a cost of US $12,000; 25 percent chance the second planned quality test costing US $8,000 is unnecessary. What is the expected monetary value of these risks?

1. $50,000
2. $5,200
3. $42,000
4. $7,200 86

Q4. During project executing, the project manager is spending a lot of time solving problems that arise. It would be BETTER for the project manager to transfer his efforts to:

1. Having the team solve the problems, thus freeing his time to hold more meetings
2. Executing the project management plan and making sure the quality management plan is viable.
3. Identifying additional risks and following the risk management process
4. Performing sensitivity analysis on past problems and transferring them to other projects.

Q5. The role of each stakeholder is determined by:

1. The stakeholder and the sponsor
2. The project manager and the sponsor
3. The team and the project manager
4. The project manager and the stakeholder.

Q6. What is the difference between management reserves and contingency reserves?

1. Contingency reserves address known knowns, whereas management reserves address known unknowns.
2. Contingency and management reserves both address known unknowns and could be considered the same.
3. Contingency reserves address known unknowns whereas management reserves address unknown unknowns.
4. Contingency reserves are managed by senior management whereas management reserves are managed by the project manager.

Q7. A project manager has increased project costs by US $100,000, but completed the project four weeks earlier than planned. What activity is BEST described here?

1. Resource leveling
2. Schedule compression
3. Critical chain
4. Adjusting leads and lags

Q8. 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

Q9. A functional manager in your organization has recently filed a complaint against a junior project manager regarding his project management certification. The functional manager claims that the PMP certification claimed by the junior project manager is invalid and needs to be checked. What should be your response as a senior project manager?

1. Report to PMI
2. Suspend the junior project manager
3. Ask your project manager to provide evidence for his/her PMP certification
4. Ask your functional manager to provide evidence for his argument

Q10. Management wants to be sure that the project is following defined quality standards. Which of the following should they look at?

1. Risk management plan
2. WBS
3. Statement of work
4. Quality audit