Project Management Question Bank
for Exam preparation

Q2. Risks may be identified during the entire lifecycle of a project. Identify Risks is what type of process?

1. Qualitative
2. Effort-driven
3. Discrete
4. Iterative

Q3. During the project executing, a project team member informs the project manager that a work package has not met the quality metric, and that she believes it is not possible to meet it. The project manager meets with all parties concerned to analyze the situation. Which part of the quality management process is the project manager involved in?

1. Manage Quality
2. Project Control
3. Perform Quality Control
4. Plan Quality.

Q4. Under which circumstances is it BEST to use a network diagram rather than a bar chart?

1. To report to the sponsor
2. To show interdependence between activities
3. To track progress or to report to the team
4. To create a work breakdown structure

Q5. If Project A has a net present value (NPV) of US $30,000 and project B has an NPV of US $50,000, what is the opportunity cost if project B is selected?

1. $23,000
2. $30,000
3. $20,000
4. $50,000

Q6. Jane is currently reviewing a list of project proposals. All the proposed projects achieve some of the organizational strategic objectives and their expected costs are known. However, Jane cannot execute all the projects due to the funding limitation. How shall Jane determine which projects she needs to execute this year?

1. Select the high-budget projects and drop the low-budget projects
2. Select the low-budget projects and drop the high-budget projects
3. Select the projects that maximize organizational revenue
4. Select the projects that maximize the business value

Q7. You are a project manager for Groceries ’R’ Us, a supermarket chain, and are currently working on a project to build a new outlet. The planned values (PV) for the foundation and the frame were $150,000 and $500,000. After five months, you do a performance measurement analysis. You are currently not ahead of schedule. The actual costs for the foundation and frame were $175,000 and $650,000. At this point, 100 percent of the foundation is complete, and only 80 percent of the frame is complete. Which value represents the cost performance index (CPI) to two decimal places at this point in the project?

1. 0.84
2. 1.5
3. 0.67
4. 1.19

Q8. A project involves arranging for the closing of the company office where the team works and relocating everyone to a new city. The BEST thing the project manager can do is:

1. Spend time carefully creating the work breakdown structure.
2. Have a strong quality control plan.
3. Decrease the fringe benefits
4. Carefully consider the reward system for the project.

Q9. All of the following MUST be present to have a contract EXCEPT:

1. Procurement statement of work.
2. Acceptance.
3. Address of the seller
4. Buyer’s signatures.

Q10. The customer on a project tells the project manager he has run out of money to pay for the project. What should the project manager do FIRST?

1. Shift more of the work to later in the schedule to allow time for the customer to get the funds
2. Enter project closure
3. Stop work
4. Release part of the project team