Project Management Question Bank
for Exam preparation

Q2. You are managing an oil-drilling project. With oil at $143 per barrel, this could be a highly lucrative project. However, there is a chance that the price of oil will drop below $105 per barrel, which would eliminate the profit in the project. This is an example of:

1. Requirement
2. Assumption
3. Risk
4. Constraint

Q3. A project team is creating a project management plan when management asks them to identify project risks and provide some form of qualitative output as soon as possible. What should the project team provide?

1. Prioritized list of project risks
2. Risk triggers
3. Contingency reserves
4. Probability of achieving the time and cost objectives.

Q4. The technique most commonly used by project management software packages to construct a project schedule model is:

1. Precedence diagramming method (PDM)
2. Finish-to-Start (FS)
3. Activity-In-Node (AIN)
4. Node-On-Activity (NOA)

Q5. You are a risk manager of a project and the project manager has given you the responsibility of developing the risk management plan. So, you start collecting the risks and then you categorize them based on their impact on the project objectives. Afterward, you analyze them and develop the risk response plan for positive risks and negative risks. After developing these response plans, what will your next step be?

1. Develop the risk response plan for neutral risks
2. Update the project management plan
3. Assign the risk action owner to each risk
4. Change the critical path to reflect the risk impact

Q6. You have recently joined a new company as a project manager. While reviewing the procurement plans for a project you will be taking over, you see that the company is considering using one of the most expensive manufacturers to provide certain equipment required for the project. At your previous employer, you had used a different supplier for the same equipment and had paid significantly less. Without telling your boss, you now call that supplier for a quote. Have you violated the rule of keeping proprietary information confidential?

1. Maybe. You need to talk to your boss first.
2. No. There is no harm in sharing the information with your current employer, because you are no longer working for your old employer.
3. Yes. The supply source is proprietary information, and you should not contact the supplier.
4. You have not violated any rule.

Q7. You are managing a project in a just-in-time environment. This will require more attention, because the amount of inventory in such an environmental is generally:

1. 45 percent
2. 10 percent
3. 12 percent
4. 0 percent

Q8. After identifying the risks, you analyze them qualitatively and quantitatively to see if your risk response planning will effectively minimize the project risk or not. If not, you will tweak your risk response plan so the project risks fall within the stakeholders’ tolerance limits. Which of the following statements is correct about the quantitative risk analysis process?

1. It is performed before qualitative risk analysis
2. It is performed on each project
3. Performed after qualitative risk analysis, if required
4. None of the above

Q9. The Plan-Do-Check-Act (PDCA) cycle as the basis for quality improvement is usually attributed to:

1. Deming
2. Crosby
3. Juran
4. Pareto

Q10. An organization wishes to ensure that the opportunity arising from a risk with positive impact is realized. This organization should:

1. Exploit the risk
2. Mitigate the risk
3. Accept the risk
4. Avoid the risk