Project Management Question Bank
for Exam preparation

Q2. Your company has signed up to build a high-tech machine in collaboration with ABC Corp in Japan. ABC Corp will provide the expert, technical know-how and any spare parts you may need. This is a very high-tech machine, the exact description of work is not yet clear, and you are building it for the first time. In this scenario what kind of contract will you select?

1. FPIF
2. CPAF
3. T&M
4. FFP

Q3. After identifying a risk to your project, you determine that there is a high probability of risk occurring with a low consequence. What mitigation strategy is BEST to adopt?

1. Eliminate the consequence of the risk.
2. Avoid the risk
3. Add the risk to the watch list
4. Insure against the risk.

Q4. You are managing a fund-raising golf tournament that has a hole-in-one contest. However, your company cannot afford to pay the $1,000,000 award if someone does get a hole in one, so it has elected to take out an insurance policy in the event someone does get lucky. This is an example of:

1. Sharing
2. Mitigation
3. Transference
4. Avoidance

Q5. A project manager used the services of a trained moderator during the Collect Requirements process. Which of the following is likely to have required the services of a trained moderator?

1. Interviews
2. Prototypes
3. Questionnaires
4. Focus groups

Q6. Costs incurred in one area of a project can offset costs in another area of the same project. However, it is not enough to consider only the costs of project execution when making project decisions. What other costs external to the project must also be considered?

1. Costs of conformance
2. Planning costs
3. Operating costs
4. Initiating costs

Q7. Two people are arguing about what needs to be done to complete a work package. If the project manager wants to know what is going, she should pay MOST attention to:

1. What is said and when.
2. What is being said, who is saying it and the time of day.
3. Physical mannerisms and what is being said.
4. The pitch and tone of the voices, and physical mannerisms.

Q8. As a project manager, you are presented with the following information on the net present value (NPV) of several potential projects. Which project is your BEST choice?

1. Project A with an NPV $95,000
2. Project B with an NPV of $120,000
3. Project C with an NPV of $20,000
4. Project D with an NPV of -$30,000

Q9. Some project managers take communication lightly while managing a project. However, a good project manager must take communication very seriously and must be an effective and efficient communicator. Which of the following is not a fundamental attribute of effective communication?

1. Clarity on the purpose
2. Understanding receiver's communications requirements
3. Relying on verbal communications
4. Monitoring communications

Q10. As a project manager, you are in the process of preparing the project schedule for the project. Which of the following accurately depicts the sequence of your activities before you began to prepare the project schedule?

1. Sequence Activities, Estimate Activity Durations, Develop Schedule
2. Sequence Activities, Estimate Activity Durations, Define Activities
3. Estimate Activity Durations, Sequence Activities, Develop Schedule
4. Define Activities, Estimate Activity Durations, Sequence Activities