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PMP Exam Set 1 - Questions
PMP Exam Set 1 - Questions
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Initiating
1. A Project Manager is working on large computer delivery project but he is not getting
enough project attention. Resources are occupied in doing process related work and Project
Manager has little authority in proper assignment of resources. What form of organization is
the Project being performed?
a. Projectized
b. Functional
c. Strong Matrix
d. Weak Matrix
2. All the following statements relating to the project management team and the project team
are accurate EXCEPT:
a. The project management team is also called the core, executive, or leadership team.
b. The project team is responsible for activities like planning, controlling, and closing.
c. The project management team is a subset of the project team.
d. For small projects, the project management responsibilities are shared by the entire
team or administered solely by the Project Manager.
4. Which of the following MOST appropriately describes the role of a Project Manager, related
to integration?
a. Ensuring that the various project elements are properly coordinated
b. Ensuring that all members work together
c. Ensuring that the stakeholders' role is integrated with the rest of the team
d. Ensuring that the management's role is integrated with the everyday working of the
project
5. A Project Manager is training the interns in her organization. During the training session, an
intern wants to identify which of the following is NOT a characteristic of a project. Can you
help her by selecting one of the options,
a. Temporary
b. Repeats every week
c. Interrelated activities
d. Definite beginning and end
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6. During the Initiation process group, which of the following is a source of information about
specific project constraints and assumption based on current environment, historical record
and expert judgment?
a. Project Scope Management Plan
b. Project Charter
c. Communication Management Plan
d. Project Management Plan
7. The Project Manager, along with the project team, is responsible for accomplishing the
project objectives. Managing a project does NOT include,
a. Identifying requirements
b. Adapting the specifications, plans, and approach to the different concerns and
expectations of the various stakeholders
c. Balancing the competing demands for quality, scope, time and cost
d. Planning only the resources required
10. During which Project Management process group is a rough order of magnitude estimate
created?
a. Initiating
b. Planning
c. Monitoring and Controlling
d. Execution
11. Which process group recognizes that a project or phase should begin and commits to the
organization?
a. Initiating
b. Planning
c. Scoping
d. Monitoring
12. Which of the following is NOT the advantage of obtaining approval for the project charter
from the sponsor and customer?
a. Gain commitment and acceptance for the project
Copyright 2013 The Knowledge Academy Ltd - All rights reserved. Page 3 of 38
b. Declares the Project Manager
c. Preparation of the project plan is done during this period
d. Formalize the authority assigned to the Project Manager
14. Multiple classification models are available to prioritize the key stakeholders to ensure
efficient use of effort to communicate and manage their expectations. One such model is
the Salience Model. Which of the following does this model NOT consider?
a. Power
b. Legitimacy
c. Urgency
d. Influence
16. Which of the following is not normally an element of the Project Charter?
a. Work package descriptions
b. Business need that the project was undertaken for
c. Product description or a reference to this document
d. Formal authorization to apply organizational resources to project activities
17. Which of the following statements describes the relationship between project phases and
the project life cycle?
a. Collectively, the project phases are known as the project life cycle
b. The project lifecycle is regarded as a sequence of project activities while phases are
defined to control the overlapping of activities
c. The project lifecycle contains the repetitive elements inside a project phase
d. The project lifecycle contains the iterative incremental elements inside a
project phase
18. Project Management Office is an organizational body that can be responsible for the
centralized and coordinated management of the projects, programs and portfolios under its
domain. Which of the following is NOT a feature of the PMO?
a. Managing shared resources across all projects administered by the PMO
b. Coordinating communication across all the projects
c. Identifying and developing project best practices, and standards
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d. Monitoring the project status and reporting to the CEO
19. Which of the following is TRUE for a generic life cycle structure?
a. Cost and Staffing Levels are high at the start and peak as the project draws to a close.
b. Uncertainty and overall project risk decrease over the life of the project
c. Ability to influence the final characteristics of the project’s product is lowest at the start of
the project
d. Cost of changes is highest at the start of the project.
20. Which phase to phase relationship is depicted when a phase starts prior to the completion
of the previous one?
a. Sequential relationship
b. Overlapping relationship
c. Iterative relationship
d. Multi – use relationship
21. Which of the following projects will NOT depict the case where the operations department
will integrate the deliverables into future business practices?
a. Installing products or services that require on-going support
b. Developing a new product or service
c. External projects
d. Developing, acquiring or enhancing an operational department’s information system
22. What is the primary role of the Project Manager vis-à-vis the stakeholders?
a. Stakeholders are persons or organizations that are actively involved in the project
b. Stakeholders are customers, sponsors or public
c. To identify the stakeholders and manager the influence of the various stakeholders in
relation to the project requirements to ensure a successful outcome.
d. Stakeholders’ interest can positively or negatively affect the execution or completion of
the project.
23. “Business leaders from a community benefit from an industrial expansion project and they
see an economic benefit to the community”. What kind of stakeholders are they?
a. Positive
b. Negative
c. Stakeholders
d. Financial stakeholders
Copyright 2013 The Knowledge Academy Ltd - All rights reserved. Page 5 of 38
Planning
2. You are in the Planning phase and are involved in defining the management point in a WBS
that is used to consolidate and process work package data and forward the results to the
Project Manager. What is it known as?
a. Control account
b. Chart of accounts
c. Control limit
d. Account limit
3. You are the Project Manager for time management software that will be developed in 4
different languages to be sold in Asia. Your team is currently in the planning stages of risk
management and has identified a potential risk related to the language translation of the
software. The team is arguing that keyboards across the different countries in Asia may not
support all the functions required by the program. The risk response suggested by a team
member is to hire a consulting company specializing in hardware management to deal with
the risk. This team will identify the keyboards that do not support all the functions and
replace them with the correct keyboards. Which risk response strategy has the team
member suggested?
a. Accept
b. Mitigate
c. Avoid
d. Transfer
4. In a Functional organization, the Project Manager has discovered an unidentified risk that
requires a workaround to be implemented. The workaround will be most likely be approved
by,
a. Any Stakeholder
b. Functional Manager
c. Customer
d. Project Manager
5. Your colleague, Tom is using probability distributions to display uncertainty within specific
schedule activities. Which of the following distribution types is the Project Manager most
likely to use?
a. Normal distributions
b. Discrete distributions
c. Beta distributions
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d. Uniform distributions
6. As a Project Manager, James is presenting the status of Risk priority of his project during the
Planning status meeting. He shows a table with green, yellow and red squares. What are the
stakeholders currently looking at?
a. Probability and Impact matrix
b. Risk score table
c. Probability and Impact Grid
d. Risk Grid
7. The NHAI construction project is in the planning stage and you are the Project Manager for
the same. Instead of choosing a cost-plus contract, you want to choose fixed price contract.
State the risk response strategy you are using?
a. Risk Avoidance
b. Risk Transference
c. Risk Mitigation
d. Risk Acceptance
8. During a regular project meeting, one of the team members suggests a nice feature that
customer may like. But the Project Manager says 'No' to this nice feature saying that the
project should concentrate only on what is required for the project to be completed and
nothing else. This is an example of :
a. Scope Management
b. Quality Management
c. Project Management
d. Change Management
9. Which of the following is not true regarding subdividing the work in the WBS?
a. Subdivide until it cannot be logically subdivided further
b. Subdivide until it can be realistically estimated
c. Subdivide until it has meaningful conclusion
d. Subdivide until it can be done by a single person
10. What can you use to clearly communicate what work is included in the Work Packages?
a. Scope statement
b. Requirements document
c. Project Management Plan
d. WBS dictionary
11. James is the Project Manager of a new data migration Project. He is supposed to come out
with his Project WBS. To create his WBS, he goes to the Organization Process database and
pulls out the WBS of a completed data migration project and uses that as a starting point to
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create his own WBS. Which of the following tools & techniques of Creating WBS process is
he using?
a. Brainstorming
b. Templates
c. Decomposition
d. Delphi Technique
12. Product analysis is done during the development of which of the following deliverables?
a. Project Management Plan
b. Project Scope Statement
c. Project Schedule
d. Project Charter
13. A Project Manager is calculating the weighted average of activity duration estimate to do the
Schedule network analysis. Which Schedule Network Analysis technique is he using?
a. Critical Path Method
b. Critical Chain Method
c. PERT
d. Brainstorming
14. An activity has an Early Start (ES) of day 10 and Late Start (LS) of day 15, an Early Finish (EF)
of day 25 and Late Finish (LF) of day 30. What can be said about this activity?
a. The activity is not progressing at all
b. Activity is on the critical Path
c. Activity is not on critical Path
d. Not enough information to tell anything about the activity
15. Rearranging resources so that same number of resources work on the project each month is
also called:
a. Levelling
b. Crashing
c. Heuristics
d. Cost Estimation
16. Project funding usually occurs in incremental amounts that are not continuous and appears
as a step function. The total funding requirements and periodic funding requirements are
derived from the,
a. Cost estimate
b. Cost baseline
c. Cost priority reserve
d. Management reserve
17. Project documents that may be updated as output from the Determine Budget process do
NOT include,
a. Risk Register
Copyright 2013 The Knowledge Academy Ltd - All rights reserved. Page 8 of 38
b. Risk Management Plan
c. Cost estimates
d. Project schedule
18. During the creation of the project schedule, one of your team members informs you that he
works on user interface development, which is a very creative activity and he is not in a
position to estimate the time required to complete the creative activities assigned to him.
But as a Project Manager, you need the activities' estimates. So you decide to use the past
data in terms of number of hours spent by him and the number of user interfaces designed
by him in those man hours. Which estimation technique are you using?
a. Parametric
b. Analogous
c. Bottom Up
d. Three Point Estimation
19. A Project Manager is allocating the overall cost estimates to individual activities to establish
a baseline for measuring project performance. What process is he performing?
a. Cost Management
b. Cost Estimating
c. Cost Control
d. Cost Budgeting
20. You are asking each of your team members to give time estimates of their activities and
calendar date when they are available to work on those activities. What exactly are you
doing?
a. Schedule Development
b. Activity Sequencing
c. Schedule Control
d. Schedule Network Analysis
21. You are in the process of finalizing your project schedule. You have defined 5 milestones in
your project schedule. What is the duration of a project milestone?
a. Project duration
b. Zero duration
c. Average of the activity before and after the Milestone
d. Twice the project duration
22. One of the team members is asked to reduce the Project Schedule. He analyses the network
diagram and starts identifying sequence of activities which can possibly happen in parallel.
Which technique is he using?
a. Flow charting
b. Fast tracking
c. Crashing
d. WBS
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23. After completing the Schedule Network analysis, you found out that your Project schedule is
taking too long and you also find no ways to change your network diagram. In such cases, to
get the Project completed faster, what option do you have?
a. Fast track the project
b. Crash the project
c. Level the resources
d. Leave it as it is
24. Jim is the Project Manager of a software project whose client is based in Mexico. The team is
in the planning stage performing the processes of risk management. Tom has come to you
for assistance of handling the response of identified and prioritized negative risks. Which of
the following is not a strategy of handling negative Risk?
a. Avoid
b. Transfer
c. Risk
d. Enhance
25. You have been asked to assist the contract manager in drafting the contract of a large
project with limited scope clarity. What type of contract would you suggest so that your
organization does not make any financial losses?
a. Time and Material
b. Firm Fixed Fee
c. Cost Plus Fixed Fee
d. Cost Plus Percentage of Costs
26. Your project involves 50 employees of your company and 10 sub-contractors. You want to
know who is assigned to do what. Where should you look for this information?
a. Project Organization Chart
b. Pareto Chart
c. Resource Histogram
d. Responsibility Assignment Matrix
27. Your Organization wants to build a new web based HR Management System. You are the
Project Manager from the IT team and the HR Manager of the Organization is expected to
assign two of his team members on this project to work as functional experts. However, the
HR manager assigns team members, who do not have a good reputation about their
Knowledge. As a Project Manager, what should you do?
a. Schedule a meeting with the HR Manager and ask why he assigned those member to this
project and share your concern regarding their competence
b. Escalate the issue to the IT Head
c. Meet HR Manager's Boss and Explain your concerns to him/her
d. Try to find out who are the good HR team members and request them to be a part of
your Project
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28. A colleague of yours is discussing with you about the software to be used to create the WBS.
He is too much concerned about the graphical representation of the WBS. As an experienced
Project Manager, you suggest him that the key result of creating WBS is not the graphical
representation but:
a. Bar Chart
b. Team Buy-in
c. WBS Numbering system
d. List of activities
29. A Project Manager has received activity duration estimates from his team. Which of the
following does he need in order to complete schedule development?
a. Change request
b. Reserves
c. Change control procedures
d. List of Preventive actions
30. Jian is the contract manager and is in the process of signing a contract with a vendor for the
installation of computer servers. He is aware of the entire scope of work. Of the following,
which Contract type would he sign with the vendor?
a. Fixed Price
b. Cost Plus a Percentage of Costs
c. Time and Material
d. Cost plus Fixed Fee
32. A weekly status meeting has the following attendees apart from the Project Manager --
5 Programmers, 2 Analysts, 2 Testers, 1 Functional Manager, 2 Leads. How many
communication channels will be there?
a. 13
b. 78
c. 66
d. 121
33. You are ready to enter into a negotiating session with a group that is from a country whose
people are known to be aggressive and assertive; people who like to talk much more than
they like to listen. To earn your bonus, you must not be at a disadvantage in your
negotiations with them. Therefore, it is critical for you to?
a. Perform Active Listening
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b. Manage the seating arrangement in the meeting room
c. Earn the trust on the other side of the negotiating table
d. Prepare a well-planned agenda and following the strict time limits at each step of the
negotiating process
34. Communication technology factors that may affect the project include:
a. Availability of technology
b. Learning upgrades of new system
c. Compatibility of systems with project staffing
d. All of the above
35. As a Project Manager, you are briefing your project team before starting negotiations with
the customer. You are particularly addressing communication skills and their importance.
You say non-verbal communication skills are of:
a. Major importance
b. Little importance
c. importance only when cost and schedule objectives are involved
d. importance only to ensure you win the negotiation
36. You happen to handle a large project and the summary schedule for this project has 350
activities. What will be the best method to show the progress on the project?
a. A summary network for all the activities
b. Bar Chart of all the summary activities
c. Bar Chart for all the summary and detailed activities
d. Histogram to show per cent of work on the project that has been completed
37. Documentation is a form of project communication. Of the following, which one cannot be
referred to as project communications?
a. Correspondence
b. Reports
c. Handwritten notes and memos
d. Professional Publications
38. You are the Project Manager for the Siphone project. You have created a document detailing
what information will be expected from stakeholders and to whom that information will be
disseminated. You just created the,
a. Scope Management Plan
b. Schedule Management Plan
c. Communications Management Plan
d. Communications Worksheet
39. You are the Project Manager for the Moon project, wherein the deadlines are very tight. To
reduce the increased stress levels of your team members, you suggested yoga sessions
which have been approved by the project sponsor. You are looking for a yoga trainer to
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conduct these sessions. The procurement department has asked you to submit a document
in accordance to the project management methodology. Which document is this?
a. Statement of work
b. Procurement management plan
c. PMIS
d. Contract Terms and conditions
40. You were conducting the project post-mortem meeting for one of your recently completed
projects. It was clear in the meeting that some of the customers were not fully satisfied with
the project outcome. Your Sponsor specifically asks you about the measures taken to ensure
customer satisfaction. You refer him to one of your subsidiary plans. Which of the following
is it?
a. Communications Management Plan
b. Quality Management Plan
c. Risk Management Plan
d. Scope Management Plan
42. You are using a large number of subcontractors on your project. One fine day when you
inspect the attendance register, you noticed a lot of irregularities in Time In and Time Out of
these subcontractors. But your project is within cost and time budgets and your team leads
claim that such irregularities would not impact the project. But as a Project Manager, you
see this as a potential Risk, Where do you record this?
a. To-do List
b. Risk Register
c. Trigger List
d. Watch list
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Execution
1. During the execution of your project plan, you discover that one of the team is unaware that
deliverables from the other team will be late, and it will impact their own progress. What is
the first thing that you should do?
a. Revise the communication plan
b. Revise the project schedule
c. Revise the quality plan
d. Revise the project budget
3. When are the most defects most likely to be introduced into a product?
a. When the product is being assembled
b. When the product is being designed
c. When the quality management plan is being written
d. When the product is being reviewed by the customers
4. With respect to change, what is the most important activity for a Project Manager to focus
on?
a. Track and record the change
b. Inform Project sponsor of the change
c. Prevent unnecessary change
d. Implement the change
6. You were about to send a deliverable to your customer and at that point you realized that
there is one defect, which customer would not notice and is technically against the contract,
but still is a defect. What would you do?
a. Ignore and send the deliverable
b. Inform your Sr. Management and seek their guidance
c. Extend the project deliverable timeframe
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d. Discuss with the customer
7. You are sent by your company to execute a project in a foreign country. All your equipment
is detained at the airport and the airport authority asks for a fee to release the equipment.
You are also getting late for your project. What would you do?
a. Don't pay as it's a bribe
b. Establish whether such payment is legal in that company
c. Pay and get the money from management reserve
d. Ask your boss for the next step
8. You are the Project Manager of a large System Integration project and you are looking for a
subcontractor to do certain part of the work. Your boss comes up with a recommendation
for a vendor, who has worked on many successful projects with your company. What would
be your primary concern in such a scenario?
a. Does working with this vendor violate any of the company laws?
b. Is the vendor qualified to do such Work?
c. Is the vendor costlier than other vendors?
d. The contract Terms and Conditions
9. One of your subcontractors sends a costly New Year gift to you. What should you do?
a. Accept the Gift as it’s a new year gift
b. Establish whether accepting such gift is against your company's policy
c. Inform your manager and accept the gift
d. Reject the Gift
10. Which of the following is a hygiene factor as per Hertzberg Motivation Theory?
a. Good relation with co-workers and managers
b. Neat and clean office space
c. Recognition from Peers
d. Self-actualization
11. Tom is the Project Manager of a large outsourced machinery manufacturing project. During
the execution phase of the project, the client asks for a major change in machine design that
has a big time and cost implication, but the customer says there is not enough budget for
this change. As a Project Manager what should Tom do?
a. Escalate the issue to the his senior management and seek guidance
b. Meet with the customer to understand why is he asking for the change
c. Ask the team members to somehow get this change done without going to change
control board
d. Do nothing; let the work as its going till now
12. Which of the following is NOT true with respect to Project Procurements,
a. Depending on the application area, the seller can be called a contractor, subcontractor,
vendor, service provider or supplier
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b. Depending on the buyer's position in the project acquisition cycle, the buyer can be
called a client, customer, prime contractor, contractor, acquiring organization,
governmental agency, service requestor or purchaser
c. The seller can be viewed during the contract life cycle first as a bidder, then as a selected
source and then as a contracted supplier or vendor
d. A complex project can not involve managing contracts or subcontracts simultaneously or
in sequence
14. Which of the following type of power is considered best for leading a team?
a. Reward
b. Penalty
c. Expert
d. Formal
15. You are under a Time and Material contract to develop a web based interface for this
application. You have finished the work 20 hours earlier than expected. This means that the
profit of your company will decrease. What should you do?
a. Tell the customer you’ll be adding additional requirements to the project in order to
meet profit estimates.
b. Add activities to the project to increase the number of billable hours
c. Inform the customer that your project is complete
d. Invoice the customer for the expected billable amount, as allowed by the provisions of
your contract
16. You are managing a construction project using a firm fixed price (FFP) contract. The contract
is structured so that your company will be paid a fee of $85,000 to complete the work. There
was a $15,000 overhead cost that your company had to cover. It’s now three months into
the project, and your costs have just exceeded $70,000. The project has now consumed the
entire fee, and your company will now be forced to pay for all costs on the project from this
point forward. What’s the BEST way to describe this situation?
a. The Project Manager has overspent the budget
b. The project is overdrawn
c. The project has reached the point of total assumption
d. The project has ceased to be a profit centre for the company
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17. You are working on a project and in between the project; customer calls and explains
another feature that he wants in the Product. But there is no additional budget for the new
feature. What should you do in such a case?
a. Remove some other feature and add the new feature
b. Inform customer that he must provide additional budget for the new feature
c. Follow the contract change control Process
d. Ask your manager for guidance
18. One of your team member is not co-operative and he has a reputation of getting into
frequent problems with other team members. What should you do to handle such team
members:
a. Escalate the issue to your Senior Manager
b. Address this concern directly with the team member
c. Ignore this team member
d. Warn this team member couple of times strictly
19. You are working on a crucial project and in between you realized that you may miss the due
date of the project. What would you do in such scenario?
a. Change the due date
b. Remove Due date discussion in all stakeholder communication
c. Evaluate Options to meet the due date
d. Ask your manager for guidance in such case
21. You are executing a project in a foreign country, where it’s customary to pay Police for any
additional security cover. Something similar in another country would amount to paying
bribe. You and your team members, being foreigners, require the additional cover. What
would you do?
a. Do not pay to the Police as its bribe
b. Pay to the police as its the local custom and cannot be classified as bribe
c. Ask for Direction from your Senior Management
d. Find out if there is any budget for such payment and act accordingly
22. A customer asked you to work on a contract scope of work for 6 months and come back to
him only after 6 months when the work is over. As a Project Manager of the Vendor
Organization, what should you do?
a. Complete the work as requested but keep verifying the scope with the customer
b. Meet the customer at the end of six months with deliverables
c. Ask your Sr. management to check if the customer is genuine
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d. Complete the work and also keep a written record that the customer has asked not to
contact
23. You have to fast track your project to meet the schedule deadline and hence you decide to
use your Software Development Vendor for developing the eLearning content as well,
without going through the process of issuing the RFP and looking for the right vendor. What
should be the main concern in such scenario?
a. Organization's code of conduct violation
b. The Vendor Qualification
c. Too much dependence on the same vendor
d. Signing the Contract
24. You are assigned as the Project Manager of a new design project, where in the customer
asks for a change that would increase the project risk. What would you do in such a
scenario?
a. Ask guidance from a Senior Project Manager having worked on a similar project
b. Analyse the Impact of the change with the project team
c. Go ahead and accept the change
d. Discuss the impact of the change with the customer
25. You have been sending project status report to your customer every Monday morning.
Project Status Report is an example of what kind of communication?
a. Formal Verbal Communication
b. Formal Written Communication
c. Informal written Communication
d. Informal Verbal Communication
26. You are the Project Manager of a project which has just closed a contract with one of the
suppliers. You need to communicate the status of the contract to your stakeholders. What
kind of communication method would you use for this communication?
a. Informal Written
b. Informal Verbal
c. Formal Written
d. Formal Verbal
27. John is a new Project Manager who has joined the existing powerhouse project midway
during project execution. He wants to understand the use of creating Lessons learnt
database?
a. Should be done as it's a company policy
b. It serves as historical record for future projects
c. Project Manager can show this as his accomplishment
d. Should be done to get formally relieved from the Project
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28. Which is the best way of communicating with a team member when you have a problem
with his/her performance?
a. Informal Verbal
b. Formal Verbal
c. Formal Written
d. Informal Written
30. Which of the following is not a power derived from Project Manager’s authority?
a. Reward
b. Expert
c. Penalty
d. Formal
32. Which of the following is the highest point in Maslow Hierarchy of Needs?
a. Esteem
b. Self-Actualization
c. Esteem
d. Social
33. A team member is not performing well on a project because of inexperience. But there is
nobody else better qualified to do the job. As a Project Manager, what should you do?
a. Do it on your own
b. Wait till the team member fails to deliver
c. Arrange training for the team member
d. Escalate the matter to the higher authority
34. The Quality department informs you that your project has to undergo perform quality audit
but the team members are not co-operating due to the approaching deadlines. As a Project
Manager, How do you explain to them the purpose of the Quality Audit?
a. It's a management decision and we must allow them to audit
b. To check if the project is following any ineffective or inefficient policies
c. To check the time sheet of all team members
d. To check if customer is aware about the project process
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35. Which of the following is an example of the Quality Assurance?
a. Process Analysis
b. Inspection
c. Fishbone diagram
d. Pareto chart
36. You have recently joined a new Organization, where there are many problems in Project
Management. Projects are not happening on Time. You have been assigned to help Senior
Management of the organization to understand the project problems. Which of the
following report would you create for your Senior Management?
a. Detailed cost estimate
b. Gantt chart
c. Milestone report
d. Bar chart
37. During the Project Execution, a large no of changes are made to the project. The Project
Manager should:
a. Talk to management before any changes are made
b. Make only the changes approved by the Management
c. Make approved changes and retain Schedule baseline
d. Wait for all the changes to happen and print a new Schedule
38. Which of the following is the BEST thing to do to complete a Project two days ahead of
schedule?
a. Meet the team and look for options for crashing or fast tracking the critical path
b. Motivate the team to work hard and look for status next month
c. Tell your boss that it's not possible
d. Inform customer that critical path does not allow early completion
39. As a Project Manager you received a change that does not impact the project schedule.
What would you do?
a. Go ahead and do the change
b. Evaluate the impact on other components of Triple constraints
c. Get in touch with the Change control board
d. Ask your boss for permission
40. A customer is well known for making a lot of changes in an on-going project. You have been
assigned as the Project Manager for a new project from this customer. What would you do
in the beginning of the project to manage this customer?
a. Check who is the Customer's manager and inform him about the customer's past record
b. Involve the customer as early as possible in the project
c. Say No to the customer couple of times strictly
d. Send a copy of your company change control procedure
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41. In the middle of a project, you are informed that the resources promised at the beginning of
the project are no longer available to the project. As a Project Manager what would you do?
a. Raise hand that you can no longer execute this project
b. Evaluate the impact of not having the promised resources
c. Re-plan the project without promised resources
d. Identify other resources that can be provided to you in compensation of earlier
promised resources
42. Your project sponsor and management have given the approval to outsource portions of
your large sized project plan. Who must ensure that all of the project work is authorized,
contracted properly, and funded?
a. Project sponsor
b. Vendor(s)
c. Management
d. Project Manager
43. You have to fast track your project because of the change in customer's priorities. You have
decided to subcontract part of the work to a contractor. What form of contract will you be
making?
a. Time and Materials contract
b. Cost Plus Percentage Cost
c. Cost Plus Incentive Fee
d. Firm Fixed Price
45. Which leadership style is suited for optimizing team performance in projects?
a. Laissez-Faire
b. Democratic
c. Autocratic
d. Compromise
46. A technique for resolving conflict in which the parties agree to have a neutral third party
hear the dispute and make a decision is called:
a. Smoothing
b. Arbitration
c. Forcing
d. Negotiation
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47. You are the Project Manager for a project for painting 300 rooms for a Hotel. You have
assigned a time of 96 hours for initial 100 rooms, but only 76 hours for rest 200 rooms.
Which of the following best describes your decision?
a. Time decreases as workers complete more of the installation procedure in the final
phases of a project
b. Efficiency increases as workers become more familiar with the installation procedure
c. Costs decreases as workers complete more of the installation procedure
d. Production increases as workers become more efficient with the installation procedure
51. Your company is constructing a dam and your project, which is being performed under a
contract, mandates that you should be paying compensation to any person displaced
because of the project. What kind of constraint is this?
a. Social
b. Environmental
c. Legal
d. Humanitarian
52. A project has several teams. Team C has missed several deadlines in the past. This has
caused team D to have to crash the critical path several times. As the project leader for team
D, you should meet with the:
a. Manager of team D
b. Project Manager alone
c. Project Manager and Management
d. Project Manager and the Team C leader
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Monitoring and Controlling
1. Which of the following is termed as the authorized value of work that has to be completed
in a given time period, as per the schedule?
a. Earned Value
b. Planned Value
c. Actual Cost
d. Schedule Variance
2. What is the Expected Monetary Value of a project with a 20% probability of a $100,000 loss
and a 70% probability of a $1,40,000 gain?
a. $78000
b. - $78000
c. - $100,000
d. $1,40,000
3. Which of the following choices indicates that a project has a burn rate of 1.2?
[Burn Rate = 1/CPI]
a. PV = 100, EV = 120
b. AC = 100, EV = 120
c. AC = 120, EV = 100
d. EV = 100, PV = 120
4. Which of the following stands true when the ratio between Earned Value and Planned Value
is greater than one?
a. You have completed less work than the planned work.
b. You have completed more work than the planned work.
c. You are earning less than spending.
d. You are earning more than spending.
6. A project was assessed and the following Earned value data have been found: PV: $900,000
EV: $750,000 AC: $800,000 What is the Burn rate of the project?
[Burn Rate = 1/CPI]
a. 1.20
b. 1.06
c. 1.00
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d. 0.83
7. The customer's expectations for quality are shown on a control chart as,
a. Mean
b. Specification limit
c. Rule of Seven
d. Upper and Lower Control Limits
8. Using these values, calculate the Cost Performance Index (CPI) and the Schedule
Performance Index (SPI),
EV=26, PV = 34, AC = 36
a. CPI = 1.5, SPI = 0.76
b. CPI = 0.76, SPI = 0.72
c. CPI = 0.72, SPI = 0.76
d. CPI = 0.72, SPI = 1.3
9. To compare actual project results to planned or expected values, one must use:
a. Trend Analysis
b. Performance Reviews
c. Information Distribution Tools and Techniques
d. Variance Analysis
10. Hugh is the Project Manager of a new Telecom project. Soon after the project started
formally, he realized that his team has not put enough estimate for a R&D kind of activity in
the project. Hugh prepared a change request to add the extra work in the project scope
statement and updated the project schedule to reflect the change. The change request gets
approved by the Change control board. What should be his next step?
a. Start the work as its anyway approved by the Change Control Board
b. Update the Scope and Schedule baselines to reflect the approved changes
c. Perform Scope Verification again
d. Perform Risk Identification to identify any Risk in the newly added work
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13. If Earned Value (EV) is $550, Actual Cost is $650, planned value is $600, what is cost variance
(CV) ?
a. -100
b. 50
c. -50
d. 100
14. The difference between cost baseline and cost budget can be best described as?
a. Management reserve
b. Sunk cost
c. Project cost estimate
d. Contingency reserve
16. You are the Project Manager of a new road construction project with a total budget of
$500,000. During a status review meeting you realized that your team has just completed
40% of the work, when they should have completed 50% by now. They have also spent
$190,000 so far on the project. What's the best way to describe the project status ?
a. Project is behind the schedule but within the cost
b. Project is behind Schedule and above cost
c. Project is ahead of the schedule and cost both
d. Too little information to get any status
17. Hannah is an assistant to the Sr. Project Manager. She has been asked to calculate the value
of EAC (Estimate At Completion) using the Budget At Completion (BAC) value. Assist her in
finding the correct formula.
a. Multiply by SPI
b. Divide by SPI
c. Multiply by CPI
d. Divide by CPI
18. Which of the following represents the Estimated Value of the work actually accomplished?
a. Planned Value
b. Earned Value
c. Cost of Completion
d. Actual Cost
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19. Which Project Cost Management Process is done during Monitoring & Control Process
group?
a. Control Costs
b. Estimate Costs
c. Determine Costs
d. Manage Costs
20. A Project Manager is encountering too many problems in his project. He wants to identify
the root cause of the problems so that he can focus his attention to those causes. Which of
the following tools should he use?
a. Control Chart
b. Pareto Chart
c. Fishbone diagram
d. Histogram
22. James, a Project Manager has been advised to use Pareto chart for his project. How can a
Pareto chart help James?
a. To identify whether Process is in control or not
b. To focus his attention on critical issues
c. To identify the root cause of a Problem
d. All the above
24. In the middle of a Project, you identify a Risk, which was not identified during the Risk
Identification process. What should you do in such a case?
a. Do a detailed analysis on why this Risk was not identified earlier
b. Escalate the matter to the quality team, so that they can come up with a new Risk
Identification Process
c. Ignore this Risk, as Risk Identification is over
d. Analyse the Risk
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25. A buyer and a seller get into a contract. They define a clear scope of work, which the seller
completes, but the buyer is not happy with the work. What happens in such a contract?
a. Contract is null and void as buyer is not happy with the work
b. Contract is complete as the scope of work is completed
c. Contract is incomplete as customer is not happy with the work
d. Contract is suspended in such case
26. You just started working on Administrating a Contract, but the senior management of your
Organization decided to terminate the contract. What should you do in such a case?
a. Follow the Close Contract Process to formally close the Contract
b. Follow the Plan Procurement Process and look for another vendor
c. Follow the Develop Project Management Plan to re-plan the project
d. Follow the Develop Project Charter Process to start a new project
27. You hired a Project Manager to manage one of your construction project. This Project
Manager is joining an on-going project. He wants to know the current status of the project in
terms of Schedule, i.e. whether the project is behind or ahead of the schedule. Which of the
following Tools and Technique should he use?
a. Earned Value Technique
b. Parametric Estimation Technique
c. Project Management software
d. Critical Path Method
28. There is a change request in your project. You documented the change and sent that to
change control board (CCB) for approval. What’s the next step in this process?
a. As a Project Manager call the CCB and advise whether they should approve or reject the
change
b. The members on the CCB use expert judgment to accept or reject the change
c. Analyse the impact of the change request with your team members
d. Establish whether Change is required or not
29. As a Project Manager, you have called for a Risk Review meeting. While going through the
Risk Register, you found out that there is a risk, which still exists, even after applying all risk
response strategies. As a Project Manager, what would you do?
a. This is a residual risk. Look for another set of response strategies
b. This is a secondary risk and secondary priority for you
c. Just wait for risk to occur as you have already implemented all risk response strategies
d. Re-calculate [Risk Probability x Impact Value]
30. Your most recent project status report contains the following information: EV = 3,000, AC =
3,500, and PV = 4,000. The schedule variance is:
a. 1000
b. 500
c. -500
d. -1000
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31. A Project Manager performs Earned Value Analysis and finds the following results : AC =
220,000 PV=250,000 EV = 220,000
Which of the following is TRUE?
a. CV = 0
b. CV = 30,000
c. CV = -30,000
d. CV = 1
32. As a Project Manager of a research project which is in the middle of the execution you
realize that your original estimates were flawed and are no longer valid. Which of the
following formula would help you to develop a forecasted Estimate at Completion (EAC)?
Here AC is the Actual Cost, EV is the Earned Value ETC is Estimate to Complete, CPI is Cost
Performance Index and BAC is Budget at Completion
a. EAC = AC + Bottom up ETC
b. EAC = AC + (BAC-EV)
c. EAC = BAC/CPI
d. EAC = AC + (EV- BAC)
33. Which of the following is NOT a tool or technique of Monitor and Control Risks?
a. Bringing in an outside party to review your risk response strategies
b. Revisiting your risk register to review and reassess risks
c. Using Earned Value analysis to find variances that point to potential project problems
d. Gathering information about how the work is being performed
35. You’ve been hired by a large consulting firm to evaluate a software project for them. You
have access to the CPI and EV for the project, but not the AC. The CPI is .92, and the EV is
$172,500. How much money has actually been spent on the project?
a. $158,700
b. $172,500
c. $187,500
d. There is not enough information to calculate the actual cost
36. Which of the following is NOT an output of Monitor & Control Project Work?
a. Project management plan updates
b. Change request status updates
c. Change requests
d. Project document updates
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37. You’re managing a construction project to install several hundred air conditioner panels in a
new office building. Every floor has identical panels. The customer, a construction
contracting company, has provided specifications for the installations. The team is using a
process to install and verify each panel. As the team completes each panel, your team’s
quality control inspector measures it and identifies defects. The root cause of each defect is
identified. You want to identify the on-going trends of defective installations. Which is the
BEST tool to use for this?
a. Run Chart
b. Fishbone diagram
c. Control chart
d. Pareto chart
38. You have been hired by a contractor, who wants you to manage a construction project for
one of their clients. The project team has been working for six weeks. You need to
determine whether the team is ahead of or behind schedule. Which of the following tools
and techniques is the BEST one for you to consult?
a. Performance measurement
b. Schedule change control system
c. Bottom up estimating
d. Project management software
39. Kathy is a Project expeditor and has recently been promoted to the Project Manager role.
Currently, she is undergoing training in project management and wants to understand how
Performance Appraisal is different from Team Performance Assessment?
a. Performance Appraisal focuses on Team member performance
b. Performance Appraisal is evaluation of the team effectiveness
c. It's a tool for reducing employee turnover
d. It's a tool for team building
43. One of your team members comes to you and proposes a change in the project that can
reduce project schedule by 3 months. As a Project Manager what should you do?
a. Thank the team member and go ahead with the change
b. Analyse the impact of the change on other triple constraints like Scope, Cost etc.
c. Show your helplessness to do anything as the project deadline is already communicated
to the Customer
d. Advise the team member to just focus on his work
44. In the Control Schedule process, changes to project schedule can result in change requests
to:
a. Schedule baseline
b. Components of project plan
c. Activity attributes
d. Schedule baseline and/or components of project plan
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CLOSING
1. Because it is an ISO-9000 certified supplier, ABC Organization is developing its own Project
Management style, which is based upon PMI methodology. The lead Project Manager is
assigned the preparation of project contract closeout artefacts, and he consults the PMBOK
for assistance. Which of the following does the PMBOK describe as a useful tool and
technique to utilize during Close Procurements process?
a. Bidder conferences
b. Advertising
c. Project presentations
d. Procurement audits
2. During the process of client's formal acceptance for the final deliverables, the customer
states that he is not happy with the outcome of the project and wants a major rework on the
project. You know that the customer has approved all earlier deliverables on this project
and has never asked for any changes. Which of the following statements is true?
a. You should use problem resolution techniques such as arbitration and mediation to
reach an agreement with the customer
b. You should use power techniques such as arbitration and mediation to reach an
agreement with the customer
c. You should use leadership techniques such as arbitration and mediation to reach an
agreement with the customer
d. You should use negotiation techniques such as arbitration and mediation to reach an
agreement with the customer
3. You are the Project Manager of a two-year old project which is in the Closing phase. The key
stakeholders agree that the project has met all its goals and objectives outlined in the
project charter and further defined in the scope and statement of work. The project is within
budget and has finished on time. The management of one of the functional areas is quite
upset because over half of his staff quit during the project citing long hours and lack of
management support. What is the MOST correct statement about this project?
a. The project was within budget and time and achieved its objectives. Upper management
is responsible for providing adequate resources, and the Project Manager successfully
managed the project with available resources.
b. The project should be measured against how successfully it met its charter. This was not
done during this project.
c. The Project Manager did not obtain adequate resources and did not set a realistic
deadline based on resources available.
d. The functional manager is responsible for his staff and obtaining adequate resources to
meet the schedule once it has been set. The project and Project Manager achieved all of
its goals set forth in the charter.
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4. A Project Manager is making sure that the Product of the project is as per the Project
Management Plan. Which part of the Project Management Process is he in?
a. Initiating
b. Planning
c. Executing
d. Closing
5. As a Project Manager you delivered a new Product to your customer, but the very next day
you got a call from the customer saying that some of the features that they were expecting
were not present in the new product release. What is the first thing that you should do ?
a. Call for a team meeting and discuss the customer concern
b. Request for a meeting with the customer and try understanding what features were not
present in the product
c. Ask your team members to immediately start building the missing feature
d. Review project contract and Identify the possible problem
8. Which process group includes processes used to formally terminate all activities of a project
or a project phase?
a. Closing
b. Monitoring and Controlling
c. Planning
d. Executing
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c. Based on the procurement terms and conditions, the buyer never has the right to
terminate the whole contract or a portion of the contract, at any time for cause or
convenience.
d. In multi-phase projects, the term of a contract may only be applicable to a given phase
of the project
10. Mr. Leo is the supplier of the PCB to the Ahoy Electricals Inc. A contract has been assigned
with Ahoy Electricals Inc. and now the organization is conducting the procurement audits
and updating the project records. Which process are we referring here?
a. Develop Project Management Plan
b. Close Project or Phase
c. Administer Procurements
d. Close Procurements
11. Which one of the following is the last step of Project Closing?
a. Client has accepted the product
b. Archives are complete
c. Client appreciates your product
d. Lessons learnt are documented
12. Which of the following is NOT an input to the 'Close Project or Phase' process?
a. Project Management Plan
b. Expert Judgment
c. Accepted deliverables
d. Organizational process assets
13. Your project is coming to an end, and you are in the process of listing the activities that must
be performed to close out the project. Which of the following should be performed during
the closing processes?
a. Issue a formal notice of project completion to sellers
b. Request final inspection reports for all vendor supplied products
c. Issue payment schedules and requests
d. Seek legal counsel from the company's legal department prior to closing the project
14. You are a Project Manager and are in the Closing processes of the project. Your customer
has been presented with a formal acceptance and sign-off document. They refuse to sign,
claiming the product does not meet their expectations. You know that this situation could
have been prevented by doing all of the following EXCEPT :
a. Documenting the requirements
b. Documenting the customer's refusal to sign
c. Performing quality inspections during the process
d. Requesting sign-off at important milestones
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DUMMY
1. Which of the following roles is most appropriate for the Project Manager?
a. Integrator
b. Communicator
c. Coach
d. Technical Consultant
2. The degree to which written policies, procedures, rules and job descriptions guide the
behaviour of personnel involved in projects is called :
a. Centralization
b. Complexity
c. Specialization
d. Formalization
4. You are the Project Manager in your organization. Management has requested you to
address the company's employees about Quality. You talk about the business philosophy
that defines methods to continuously improve products, services, and business practices.
This is known as:
a. American Society for Quality
b. Total Quality Management
c. Quality Control
d. Quality Assurance
5. Quality Control (QC) Circle movement, pioneered in Japan, motivated its participants in
many ways. Which of the following represents the most important motivation for the QC
circle participant?
a. Strengthening of relationships between co-workers and recognition among co-workers
b. Self-Improvement
c. Financial incentives
d. Improving the performance of the company
6. John is the Project Manager and has asked his configuration manager to provide data from
the reporting system about the project status till 5th June 2010. What is this date referred to
as?
a. Data Date
b. Value Date
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c. Completed Date
d. Not of much significance
7. Jack has been recently promoted as the Portfolio manager in his organization. His boss has
asked him to use the PEST analysis tool to build the vision of the future. Help Jack
understand the full form of PEST Analysis,
a. Political, Economic, Socio-Cultural and Technological Environment
b. Power, Economic, Status and Technological Environment
c. Political, Economic, Status and Technological Environment
d. Power, Economic, Status and Total Environment
10. Of the following, which are the tasks that should be delegated?
a. Performance evaluations
b. Disciplinary actions
c. Confidential tasks
d. Tasks for which team members have all information for decision making
11. Companies and institutions most commonly hire project management leaders with,
a. A strict standing in delegation
b. Experience in tricking business partners
c. Integrity and expertise
d. A strong link with local authorities
12. You are a Project Manager at growing bookstore that is trying to restore its position in the
market. You have been assigned the project in the metropolitan cities. Based on the
following data, which project should be recommended using the discounted cash flow
technique?
Project 1 makes $100,000 in 2 years
Project 2 makes $110,000 in 3 years
Project 3 makes $120,000 in 4 years
Assume that the cost of capital is 8%
a. Project 1 since it yields the highest value
b. Project 2 since it yields the highest value
Copyright 2013 The Knowledge Academy Ltd - All rights reserved. Page 35 of 38
c. Project 3 since it yields the highest value
d. Project 3 since it yields the highest total cash flow
13. Which of the following is not used in selecting between multiple competing projects?
a. Payback Period
b. Net Present Value
c. Cost Estimating Technique
d. Internal Rate of Return
14. Which of the following is NOT true about Monte Carlo Simulation?
a. It is a way to represent and analyse risk and uncertainty
b. The uncertainty in key input quantities is represented as a probability distribution
c. It is impractical for large models
d. Latin hypercube sampling is a variant of Monte Carlo simulation
15. Using the Blake Mouton Managerial Grid which is focused at 'task versus person' where
would Country Club Leadership fall?
a. High People Low Production
b. High Production Low People
c. Low Production Low People
d. High Production High People
16. Which are the four components of the Kano model that is used in prioritizing the agile
project requirements?
a. Must haves, dissatisfiers, satisfiers, delighters
b. Must , Should, Could, Won't
c. Dissatisfiers, satisfiers, delighters, Sadists
d. Prioritizer, Delighters, Timely, Lately
17. The effect found by Ringelmann (1913), that the average individual weight that people pull
in a group decreases as the size of the group increases, is an example of which type of loss?
a. Production blocking
b. Coordination
c. Individual capacity
d. Motivation
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19. Which of the following is NOT a step involved in the agile version of model driven
development (AMDD)?
a. Identify the high level scope
b. Identify the low level scope
c. Identify an architectural vision
d. Identify initial "requirements stack"
20. Legitimate power is based on the subordinate's perception that the leader has a right to
exercise influence because of the leader's: Legitimate power is based on the subordinate's
perception that the leader has a right to exercise influence because of the leader's:
a. role or position within the organization
b. ability to punish or reward
c. personal characteristics and personality
d. expertise and knowledge
22. Within an organisation, leadership influence will be dependent upon the type of ________
that the leader can exercise over the followers.
a. Knowledge
b. Power
c. Friendship
d. Delegation
23. Effective managers who achieve goals in ‘steady state’ conditions by clarifying role and task
requirements are called:
a. Transformational leaders
b. Transactional leaders
c. Charismatic leaders
d. Action centred leaders
24. In the Vroom-Yetton-Jago leadership theory, the main aspect of leader behaviour on which
the theory focuses is:
a. whether the leader and followers come into conflict
b. the extent to which the leader should share decision making with followers
c. whether followers have high productivity
d. whether followers have satisfying jobs
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25. Which of the following is NOT one of the leadership styles identified in House’s path-goal
theory?
a. Participative.
b. Employee-centred
c. Directive.
d. Achievement-oriented
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