Project Management Question Bank
for Exam preparation

Q2. During the risk qualification process, you have identified many risks with a low impact or probability of happening. How will you deal with these risks?

1. Ignore them
2. Analyze them further
3. Keep on the watch list
4. Plan a risk response for them

Q3. Which of the following is the BEST project management tool to use to determine the longest time the project will take?

1. WBS
2. Network diagram
3. Bar chart
4. Project charter

Q4. A particular stakeholder has a reputation for making many changes on projects. What is the BEST approach a project manager can take at the beginning of the project to manage this situation?

1. Say “No” to the stakeholder a few times to dissuade him from submitting more changes.
2. Get the stakeholder involved in the project as early as possible.
3. Talk to the stakeholder’s boss to find ways to direct the stakeholder’s activities to another project.
4. Ask that the stakeholder not be included in the stakeholder listing.

Q5. Your company is considering buying a building worth $1 million. If the company buys this building and rents it out for the next five years, it will get $100,000 per year as rent (receivable by the end of each year). At the end of the fifth year, the company will resell the building at $1.1 million. What is the NPV of this investment at 10 percent per annum discount rate?

1. 62092
2. 600000
3. 1600000
4. 2200000

Q6. A project’s financial management reserves are determined in which process:

1. Estimate Costs
2. Determine Budget
3. Control Costs
4. Estimate Activity Resources

Q7. The credibility of your risk management depends on the unbiased probability and impact of identified risks. If these parameters are not correctly assessed, your risk management is not worth following. In which of the following process do you define the definition of probability of risks?

1. Plan risk management
2. Identify risks
3. Plan risk responses
4. Perform qualitative risk analysis

Q8. Janice, a project manager, wanted to obtain early feedback on the project requirements. However, she was concerned that the abstract representations of the requirements might not elicit useful feedback. Which of the following tools and techniques might help her overcome this hurdle?

1. Histograms
2. Prototypes
3. Ishikawa diagram
4. Control charts

Q9. A project consists of multiple phases. Which of the following is a valid statement and applies to each phase of the project?

1. Each phase is generally concluded with a review of the work accomplished but is only closed if the next phase has already started.
2. Each phase of the project is considered complete when the project sponsor signs off on that phase of the project.
3. Each phase of the project is generally concluded with a review of the work accomplished and deliverables to determine acceptance and whether the phase should be considered closed.
4. Each phase is generally concluded with a review of the work accomplished. A phase is never considered complete until the end of the project when the entire project is complete.

Q10. A project is seriously delayed. Earned value analysis shows the project needs to be completed 10 percent faster than the work has been going. To get the project back on track, management wants to add 10 people to an activity currently assigned to one person. The project manager disagrees, noting that such an increase will not produce an increase in speed. This is an example of:

1. The law of diminishing returns
2. Fast tracking
3. Earned value
4. Life cycle costing