PMP®: Project Management Professional Exam Deluxe Study Guide Bonus Exam Questions Chapter 1 1. You are the project manager for your company’s upcoming move. Several departments in your company are moving to a new building. You’ve completed the Initiating process for this project and know that the next set of processes for this project will occur in which order? A. Planning, Monitoring and Controlling, Executing, Closing B. Monitoring and Controlling, Planning, Executing, Closing C. Executing, Planning, Monitoring and Controlling, Closing D. Planning, Executing, Monitoring and Controlling, Closing Answer: D Remember the IPECC acronym (which sounds like syrup of Ipecac) for the project process order: Initiating, Planning, Executing, Monitoring and Controlling, and Closing. 2. You are a project manager for a pharmaceutical company. You are responsible for acquiring and assigning resources to your projects and for making all of the day-to-day decisions regarding project issues. You report to a manager who also manages four other project managers. What type of organizational structure is this? A. Strong matrix B. Balanced matrix C. Functional D. Weak matrix Answer: A Strong matrix organizations are characterized by giving project managers full authority for projects. Project managers in a strong matrix organization usually report to a manager of project managers. 3. Your company is introducing a new product for the holiday season. This new product will be offered on the company website and in the mail-order catalog. You will use incremental steps to help you refine the characteristics of the product. Which of the following will you perform to determine the characteristics and features of the new product? A. Iteration B. Progressive elaboration C. Earned value analysis D. Requirements analysis Answer: B The best answer is B. The process of taking incremental steps to examine and refine the characteristics of the product of the project is called progressive elaboration. Processes may be progressively elaborated as well. 4. You are a project leader responsible for upgrading and installing three of your company’s servers. Because of your expertise, you are also responsible for answering and resolving escalated calls from the help desk. What type of organization do you work in? A. Weak matrix B. Projectized C. Functional D. Balanced matrix Answer: A Weak matrix organizations are a lot like functional organizations except that in a weak matrix structure, duties are usually split between projects and functional duties. Project managers are usually called project leaders or project coordinators in an organization like this, and they report to functional managers. Chapter 2 1. Which of the following are the processes in the Project Communications Management knowledge area? A. Plan Communications Management, Manage Communications, Develop Project Management Plan, and Control Communications B. Plan Communications Management, Manage Communications, Develop Project Management Plan, Control Communications, and Close Project or Phase C. Plan Communications Management, Manage Communications, Control Communications D. Plan Communications Management, Manage Communications, Direct and Manage Project Work, and Control Communications Answer: C Project Communications Management includes Plan Communications Management, Manage Communications, and Control Communications. 2. According to the PMBOK® Guide, each of the following is a type of need or demand that brings about a project except which one? A. Marketing demand B. Social need C. Legal requirement D. Stakeholder demand Answer: D The needs and demands that bring about a project include market demand, strategic opportunity/business need, customer requests, technological advance, legal requirement, ecological impacts, and social need. Stakeholder demands will likely drive the project request, but this is not a need or demand that brings about a project. 3. Your selection committee is trying to decide between two projects. Funds exist to undertake only one of the projects. You know that all of the following are true except which one? A. Project selection methods are a tool and technique of the Initiation process. B. IRR is the discount rate when NPV equals zero. C. The discounted cash flow technique evaluates the cash inflows for each period and compares this to the initial investment. D. Payback period is the least precise of all the cash flow calculations used to select projects. Answer: C The discounted cash flow technique evaluates the cash inflows for the entire project and compares this to the initial investment. 4. Your project was selected and approved by the selection committee. Your next step is to create a project charter. All of the following are true regarding project charters except which one? A. The charter describes the business need of the project. B. The charter includes a description of the product of the project. C. The charter recognizes the existence of the project and commits organizational resources to the project. D. The charter is published by the project manager and signed by the sponsor and stakeholders. Answer: D Project charters describe the business need of the project and include a description of the product of the project. The project charter identifies the project manager, recognizes the existence of the project, and commits organization resources to the project. The project charter should be published by the project sponsor or the person who initiated the project. 5. You’ve been asked to prepare a cash flow analysis for the project your selection committee is considering assigning to your project team. The project cost is $148,000. The expected inflows are $80,000 the first year, $15,000 per quarter the second year, and $8,000 per quarter thereafter. What is the payback period? A. 28 months B. 27 months C. 25 months D. 24 months Answer: B First year inflows are $80,000 in 12 months, the second year inflows are $60,000 in 12 months, and the first quarter of the third year inflows are $8,000 in 3 months, making the payback period 27 months. 6. Your selection committee has determined they have the funds to apply resources to two projects. Project A will cost $164,000. Its expected inflows are $25,000 per quarter the first year and $32,000 per quarter thereafter. The IRR for Project A is 23 percent. Project B has a payback period of 19 months and its IRR is 26 percent. The selection committee has decided that company resources should be applied to the most valuable project first. How should the projects be prioritized? A. Project B should be first because its IRR is higher than Project A’s. B. Project B should be first because its payback period is shorter than Project A’s. C. Project A should be first because its IRR value is lower than Project B’s. D. Project A should be first because its payback period is shorter than Project B’s. Answer: A Payback period is the least precise cash flow technique and shouldn’t be used as the deciding factor in projects when other cash flow techniques are available. Projects with the highest IRRs should be chosen over projects with low IRR values. 7. You’ve prepared the following analysis for two different projects for review by the selection committee. Project A’s payback period is 8 months and its NPV is –27. Project B’s payback period is 10 months and its NPV is 150. Which project should the selection committee pick? A. Project A, because its NPV is lower than Project B’s B. Project B, because its NPV is highest and there is less than six months difference between payback periods C. Project B, because its NPV is a positive value D. Project A, because its payback period is shorter than Project B’s payback period Answer: C Projects with negative NPV values should not be considered. 8. Project selection methods are used to help choose and prioritize between projects, or determine if a project is worth pursuing. Which of the following describe the selection methods you might use during the Initiating process group? A. Constrained optimization methods, which use analysis and comparative approaches, and benefit measurement methods, which are mathematical formulas B. Mathematical analysis methods, which use mathematical formulas, and benefit/cost analysis, which use analysis and comparative approaches C. Mathematical analysis methods and benefit/cost analysis, which both use mathematical formulas D. Constrained optimization methods, which are mathematical formulas, and benefit measurement methods, which use analysis and comparative approaches Answer: D Constrained optimization methods are mathematical formulas that use linear, dynamic, integer, nonlinear, and algorithm formulas to make selections. Benefit measurement methods use analysis and comparative approaches such as benefit/cost analysis. Chapter 3 1. You are the project manager responsible for customizing and installing your company’s software at the client site. You’ve completed the Initiating process and are now working on the Planning processes. This project has a completion date of December 1. You’ve penciled in Kathy as the lead programmer for this project. She is tentatively scheduled to work on this project starting July 1 and ending November 4. She and her manager have always agreed to work on your projects in the past. This is an example of what? A. An assumption, because you have not yet checked on Kathy’s availability. B. A constraint, because Kathy must work between the dates assigned in order to complete the project by December 1 C. A constraint you’ve identified during the Resource Planning process D. An assumption you’ve made during the Resource Planning process Answer: A Assumptions are events or actions believed to be true and should always be documented. In this question, you believe Kathy will be available to work on your project, which makes this an assumption. 2. Project teams are limited by which of the following? A. Risks B. Technology C. Constraints D. Requirements Answer: C Constraints limit or restrict the actions of the project team. They can also dictate the actions of the project team. 3. Your project requires the manufacturing of a component part that will be installed into the final product. You’ve hired an external vendor to produce these parts for your company. The component part has specific measurable dimensions and must be manufactured to these exact specifications or your final product will not work as expected. You’ve also requested they deliver exactly 75 of these parts by May 31. Which of the following have you defined for the vendor? A. Requirements, because you’ve described specific results, outcomes, and due dates that are measurable and verifiable B. Deliverables, because you’ve described specific results, outcomes, and due dates that are measurable and verifiable C. Constraints, because the vendor’s product must precisely meet your specifications or it won’t work with the final product D. Assumptions, because the vendor’s product must precisely meet your specifications or it won’t work with the final product Answer: B The best answer is B. Although requirements describe the specifications or necessary prerequisites for the product, deliverables are outputs that must be produced to bring the phase or project to completion. They are tangible and can be measured and easily proved. 4. The documentation of project goals, deliverables, and requirements so that they can be used as a baseline for future project decisions is accomplished by writing and publishing which of the following documents? A. Project charter B. Scope statement C. Communications management plan D. Scope management plan Answer: B It’s important that the scope statement contain project goals, deliverables, and requirements and be signed off by the stakeholders. That way, everyone has the same understanding regarding the goals of the project and what will be delivered. 5. Project acceptance criteria, deliverables, project exclusions, constraints, and assumptions are all documented in which of the following? A. Project charter B. Scope statement C. Communications plan D. Project management plan Answer: B The scope statement also documents the product scope description. 6. One of the deliverables for your project is a specific piece of hardware that must be built to exact specifications. If the hardware is not sized correctly, project process will stop until the hardware is corrected. What might this deliverable be called? A. Constraint B. Critical success factor C. Conditional requirement D. Constrained deliverable Answer: B Critical success factors are deliverables or objectives that must be met in order for the project to be considered complete. 7. According to the PMBOK® Guide, this document helps assure business value is realized when the project is complete. A. Scope statement B. Requirements traceability matrix C. WBS D. Requirements management plan Answer: B The requirements traceability matrix helps assure business value is realized when the project is complete because each requirement is linked to a business and project objective. 8. Your project is not proceeding well. Your team recently had to redesign one of the components of the final product to better comply with customer requirements. This rework has increased project costs and impacted the completion of other tasks on the WBS. This setback also seems to have caused a problem with morale among team members. Which of the following is true? A. The deliverables were not defined with measurable or verifiable outcomes. B. The problem occurred because the WBS was not broken down to the lowest level of detail. C. The customer requirements were not communicated to the project team before the work began. D. The problem was caused by poor scope definition. Answer: D Poor scope definition can lead to rework, increased project costs, and poor morale. 9. Your project has been decomposed and the WBS has been constructed. Your final WBS contains five levels. All of the following are true regarding the WBS except which one? A. This project’s work package level is level five. B. The WBS is a deliverables-oriented grouping of project deliverables and elements. C. A code of accounts will be assigned only to level five of this WBS. D. Level five for this project will facilitate resource assignments and cost and time estimates. Answer: C The code of accounts is assigned to every level of the WBS. Chapter 4 1. During the Sequence Activities process, you discover that industry best practices techniques for your project dictate that activity A be completed using an automated process while Activity B should be completed using a manual process. This type of dependency is known as preferred logic, or soft logic. What is another name for this dependency? A. External dependency B. Preferred dependency C. Mandatory dependency D. Discretionary dependency Answer: D Discretionary dependency is also known a preferred logic or soft logic. Discretionary dependencies are process driven and can be determined by the project management team or by industry best practices techniques and standards. 2. Define Activities involves decomposing the work package levels into units of work called what? A. Schedule activities B. Activities C. Tasks D. Code of accounts Answer: A Schedule activities are decomposed from the work package level during Define Activities. 3. The four logical relationships known as finish-to-start, startto-finish, start-to-start, and finish-to-finish are used in which of the following diagramming methods? A. GERT B. PDM C. CPM D. ADM Answer: B The PDM is further defined by the four types of logical relationships mentioned in the question. CPM is a method used to determine early start and early finish dates during schedule development. 4. This process is where start and finish dates for your project activities are determined and activity sequences and durations are finalized. Some of the inputs to this process include calendars, lead and lags, and activity attributes. Which process is this question describing? A. Develop Schedule B. Sequence Activities C. Estimate Activity Duration D. Estimate Activity Resources Answer: A The Develop Schedule process is where the project tasks are finalized, start and finish dates are determined, and activity sequences and activity durations are finalized. 5. All of the following are true regarding lead and lag time except which one? A. Leads and lags are used when there are delays between dependent and independent activities in the project schedule. B. Leads require time to be subtracted from the start date or the finish date of the dependent activity. C. Lags delay successor activities and require time to be added to the start date or the finish date of the dependent activity. D. Lead time is used more often than lag time. Answer: D Leads require time to be subtracted from the start or finish date of the dependent activity, while lags delay successor activities and require time to be added to the dependent activity. Lag time is used more often than lead time. 6. Which of the following mathematical analysis techniques calculates the earliest start and finish date and the latest start and finish date? A. GERT B. Duration compression C. PERT D. CPM Answer: D The critical path method determines the earliest start and finish date and the latest start and finish date for each activity. All activities with zero float are said to be on the critical path. 7. You’ve calculated the critical path for your upcoming project. Which of the following is true regarding the critical path? A. It’s determined using expected value. B. It is the longest full path on the project. C. It’s made up of tasks with float time greater than zero. D. It allows for conditional looping and branching. Answer: B The critical path is the longest full path on the project, and it comprises tasks with zero float time. Critical path is calculated using the CPM, which determines a single early start and finish date and a single late start and finish date. 8. Total slack time is described as ___________________. A. the amount of time you can delay the start of a task without delaying the start of a successor task B. the amount of time you can delay the start of a task without delaying the latest finish date of a successor task C. the amount of time you can delay the start of a task without delaying the ending of the project D. the amount of time you can delay the start of a task without delaying the latest start date of a successor task Answer: C Total slack time is the amount of time you can delay the start of a task without delaying the ending of the project. Free slack is the amount of time you can delay the start of a task without delaying the start of a successor task. 9. Your project sponsor has approached you and asked if there is any way you can speed up the project. Due to some unique marketing opportunities, the organization stands to increase profits dramatically if you can finish this project ahead of schedule. After some analysis, you inform the project sponsor that you will be able to finish the project ahead of schedule provided you can hire an outside vendor to complete the activities associated some of the WBS elements. This will increase the cost of the project by $115,000. The sponsor agrees to pay the additional cost. This an example of what? A. Crashing, which is a compression technique used during the Schedule Development process B. Fast tracking, which is a compression technique used during the Estimate Activity Duration process C. Crashing, which is a compression technique used during the Estimate Activity Duration process D. Fast tracking, which is a compression technique used during the Develop Schedule process Answer: A Crashing and fast tracking are both duration compression techniques used during the Develop Schedule process. Crashing looks at cost and schedule trade-offs, while fast tracking is starting two tasks at the same time that were previously scheduled to start sequentially. 10. This tool and technique produces schedule projections and probabilities. It estimates critical path duration estimates and float time by simulating multiple activity durations many times to come up with the schedule projections and their probabilities. What technique is this? A. Parametric modeling B. Monte Carlo analysis C. Design of experiments D. PERT Answer: B Monte Carlo analysis is a simulation technique that calculates the probability of all the possible project completion dates. Monte Carlo analysis is one of the what-if scenario analysis tools and techniques. It can also be used for cost estimating. 11. You are calculating PERT times for a programming activity on your project. Your lead programmer said the earliest possible completion time would be 200 days. The most likely time is 280 days and the longest it might take is 330 days. What is the expected value? A. 235 B. 300 C. 203 D. 275 Answer: D The formula for expected value is [optimistic + pessimistic + (4 most likely)] / 6. The formula for this question is [200 + 330 + (4 280)] / 6) = 275. 12. You’re interested in knowing within a 95.44 percent confidence level how long the programming activity for your customer object will take. Which of the following is true if the expected value is 410 days and the standard deviation is 15, which of the following is a 95 percent confidence level? A. There is a 95 percent chance of completing this activity between 380 days and 440 days. B. There is a 95 percent chance of completing this activity between 395 days and 425. C. There is a 95 percent chance of completing this activity between 365 days and 455 days. D. There is a 95 percent chance of completing this activity between 350 days and 460 days. Answer: A Work will finish within plus or minus two standard deviations 95.44 percent of the time. 13. You’ve discovered that one of your programmers is assigned too many tasks. You decide to assign some of her less critical tasks to other team members who are underallocated in order to keep the project on schedule. This is an example of which of the following? A. Resource requirements analysis B. Fast tracking C. Resource leveling heuristics D. Contingency reserves Answer: C Resource leveling heuristics attempts to smooth out resource assignments without overloading individuals while keeping the project on schedule. 14. Project constraints and assumptions are two of the pieces of information contained in this Develop Schedule output. Milestones, schedule activities, and activity attributes may also be included. A. Project management updates B. Schedule data C. Project schedule D. Schedule baseline Answer: B Schedule data is the supporting data concerning the schedule and includes milestones, schedule activities, activity attributes, and constraints and assumptions. 15. If the expected value for project duration = 110 days and standard deviation = 7.34 and standard deviation squared = 53.88, what is the project duration for 95 percent confidence factor? A. The project will be completed within 102.66 days and 117.34 days. B. The project will be completed within 56.12 days and 163.88 days. C. The project will be completed within 95.02 days and 124.98 days. D. The project will be completed within 95.32 days and 124.68 days. Answer: D A 95 percent confidence factor is calculated by subtracting 2 standard deviations from the project duration to find the least amount of time to completion and then adding 2 standard deviations to the project duration to find the most amount of time to completion. Chapter 5 1. Each of the following is an element of the cost management plan except for which one? A. Level of accuracy B. Reporting formats C. Units of measure D. Cost aggregation method Answer: D Cost aggregation is a tool and technique of the Determine Budget process. 2. Which of the following is used during the Project Cost Management Knowledge Area to monitor and control project costs? It is used to calculate earned value performance measures and consists of factors such as actual cost, schedule, and scope. A. Control account B. Code of accounts C. Chart of accounts D. Control thresholds Answer: A Control accounts are assigned to the WBS and allow for the calculation of earned value performance measures. 3. All of the following are true regarding the Determine Budget process except which one? A. Assigns cost estimates to the project activities in order to establish the budget. B. The cost baseline plots the sum of estimated costs in a linear graph. C. Estimates in the cost baseline are used to measure variances and performance later in the project. D. The cost baseline, once established, is the expected cost for the project. Answer: B Cost baselines plot the sum of estimated costs expected per period and are graphically displayed as S curves. 4. This tool and technique of Estimate Costs generally provides the most accurate estimate. A. Analogous estimating B. Bottom-up estimating C. Three-point estimating D. Parametric estimating Answer: B Bottom-up estimating is generally the most accurate estimating technique, but accuracy can be affected by the size and complexity of the project. 5. This cost estimating technique is a form of expert judgment and is one of the least accurate cost estimating techniques. A. Analogous estimating B. Bottom-up estimating C. Parametric estimating D. Three-point estimating Answer: A Analogous estimating uses the actual cost of a completed project that’s similar to the current project as the basis for estimating the cost of the project. This is also called top-down estimating and is a form of expert judgment. 6. Which of the following lists the correct outputs of the Estimate Cost process? A. Activity cost estimates, cost management plan, organizational process assets updates B. Activity cost estimates, reserve analysis, cost management plan C. Activity cost estimates, basis of estimates, project documents updates D. Activity cost estimates, reserve analysis, project documents updates Answer: C The outputs of the Estimate Cost process are activity cost estimates, basis of estimates, and project document updates 7. The difference between the funding requirements and the cost performance baseline at the end of the project is known as which of the following? A. Cost threshold B. Contingency reserve C. Cost aggregation D. Management reserve Answer: D Management reserve is the difference between the funding requirements and the cost performance baseline at the end of the project. 8. During the Planning processes on your recent project, you met with a group of 14 important stakeholders to determine information needs, including the purpose for the communication, frequency of communication, and format and method of transmission. Which of the following is true? A. This information is documented in the stakeholder communication plan, which is an output of the Plan Communications process. There are 98 lines of communication. B. This information is documented in the communications management plan, which is an output of the Plan Communications process. There are 112 lines of communication. C. This information is documented in the communications management plan, which is an output of the Plan Communications process. There are 105 lines of communication. D. This information is documented in the stakeholder communication plan, which is an output of the Plan Communications process. There are 120 lines of communication. Answer: C The communications management plan describes several elements regarding project information and is an output of the Plan Communications process. The formula for lines of communication is 15 (15 – 1) / 2 = 105. 9. Your team has 7 members including yourself. How many lines of communication are there among the members? A. 7 B. 14 C. 21 D. 28 Answer: C The formula for lines of communication is n (n – 1) / 2, so the answer to this question is calculated this way: 7 (7 – 1) / 2 = 21. Chapter 6 1. You are working on the risk management plan for your project. According to the PMBOK® Guide, risk categories are a component of the risk management plan and may include which of the following types of risks? A. Project management risks, secondary risks, and organizational risks B. Technical risks, quality or performance risks, secondary risks, and risk triggers C. Technical risks, quality or performance risks, project management risks, organizational risks, and external risks D. Project management risks and external risks Answer: C The best answer is C because it contains all the risk categories defined in The PMBOK® Guide. 2. You’ve progressed through the risk processes and are now ready to determine what impact the risks that you’ve identified will have on the project and the probability that they’ll occur. Using tools and techniques such as risk probability and impact assessment, probability and impact matrix, and risk urgency assessment will help you create the risk register and overall risk ranking for the project. What process are you in? A. Perform Qualitative Risk Analysis B. Identify Risk C. Perform Quantitative Risk Analysis D. Plan Risk Responses Answer: A The tools and techniques of the Perform Qualitative Risk Analysis process include risk probability and impact assessment, probability and impact matrix, risk data quality assessment, risk categorization, risk urgency assessment, and expert judgment. 3. You’ve developed the following information for your PI matrix: Probability Medium Risk Scores High Risk Scores .6 .12 .36 .24 .48 You are evaluating risks to determine their overall risk ranking for the project. You know that the hardware compatibility risk has a .6 probability of occurring with a .4 impact. Which of the following is true? A. You’re using a tool and technique of the Perform Quantitative Risk Analysis process and the hardware compatibility risk should receive a medium overall risk ranking. B. You’re using a tool and technique of the Perform Qualitative Risk Analysis process and the hardware compatibility risk should receive a high overall risk rating. C. You’re using a tool and technique of the Perform Quantitative Risk Analysis process and the hardware compatibility risk should receive a high overall risk ranking. D. You’re using a tool and technique of the Perform Qualitative Risk Analysis process and the hardware compatibility risk should receive a medium overall risk ranking. Answer: D Probability impact matrix is a tool and technique of the Perform Qualitative Risk Analysis process and is used to show the combination of the probability of the risk (using a probability scale) and the severity of the risk (using an impact scale, which shows the severity of the impact). 4. You are in the Perform Quantitative Risk Analysis process and are using a tool and technique that is a quantitative method of analyzing the potential impact of risk events. This tool can also be used to determine stakeholder risk tolerance levels. What tool and technique is this question referring to? A. Sensitivity analysis B. Decision tree analysis C. Simulation D. Risk probability and impact Answer: A Sensitivity analysis analyzes the potential impact of risk events. It is a quantitative analysis method. 5. This component of the risk register update output of the Perform Quantitative Risk Analysis process contains the forecasted results of the project schedule and project costs. The results also include projected completion dates and costs. Each of these results has a confidence level associated with it. Which output is this question describing? A. Prioritized list of quantified risks B. Probabilistic analysis of the project C. Probability of achieving the cost and time objectives D. Trends in quantitative risk analysis results Answer: B Probabilistic analysis of the project is the forecasted results of the project schedule and costs as a result of the outcomes of risk analysis. Confidence levels are assigned to describe the level of confidence placed on the result. 6. These strategies are used to deal with negative risks. A. Avoid, exploit, share, enhance B. Avoid, transfer, mitigate, accept C. Share, exploit, enhance, accept D. Exploit, transfer, mitigate, share Answer: B The strategies used to deal with negative risks are avoid, transfer, mitigate, and accept. Chapter 7 1. Which type of contract carries the highest risk to the buyer and why? A. Time and materials contracts because the full amount of the material costs id not known at the time of the contract B. Unit price contracts because the amount for the goods or services rendered is unknown at the time of the contract C. Cost-reimbursable contracts because the total costs are uncertain D. Fixed price plus incentive contracts because the bonus amount is uncertain Answer: C Cost-reimbursable contracts carry the highest risk to the buyer because the total costs are not known at the beginning of the project. Cost-reimbursable contracts include cost plus fixed fee contracts and cost plus incentive fee contracts, also known as cost plus percentage of cost. 2. This element of the project plan can affect the Plan Procurement Management process and vice versa. A. Schedule B. Budget C. WBS D. Staffing management plan Answer: A The project schedule can affect the Plan Procurement Management process, and the Plan Procurement Management process may also have an effect on the project schedule. 3. All of the following are a type of procurement document except for which one? A. IFB B. SOW C. Contract D. RFP Answer: B The statement of work describes the work of the project and is included with the project documents. 4. Standards and regulations concerning the work of the project should be taken into consideration during the Planning processes. All of the following are true regarding standards and regulations except which one? A. Standards and regulations make up one of the elements included in the enterprise environmental factors input to the Plan Quality process. B. Regulations are approved by a recognized body and employ rules and guidelines that should be followed. C. Regulations are typically imposed by governments. D. Standards are not mandatory. Answer: B Standards are approved by a recognized body and employ rules and guidelines that should be followed. Regulations are mandatory and are usually driven by government bodies. 5. Which of the following tools and techniques of Plan Quality Management is an analytical technique that identifies variables that will have the greatest effect on overall project outcomes? A. Benchmarking B. Design of experiments C. Flowcharts D. Cost-benefit analysis Answer: B Design of experiments is an analytical technique that identifies elements, or variables, that will have the greatest effect on overall project outcomes. This process uses experiments to determine the ideal solution for a problem using a limited number of sample cases. 6. This output of the Plan Quality Management process is used to specifically describe what is being measured and how it will be measured. A. Quality checklists B. Quality management plan C. Process improvement plan D. Quality metrics Answer: D Outputs to the Plan Quality Management process include the quality management plan, quality metrics (also known as operational definitions), quality checklists, process improvement plan, quality baseline, and project document updates. Quality metrics describe what is being measured and how it will be measured. 7. You are working on the Plan Human Resources Management process and have gathered all of the inputs to this process. All of the following are true regarding this process except which one? A. Staff acquisition describes how team members are acquired and is a component of the staffing management plan, which is an input to this process. B. Roles and responsibilities, an output of this process, describes the roles, authority, responsibility, and competency of team members. C. Project organization charts might take the form of hierarchical charts, matrix-based charts, or textoriented formats. D. Templates and checklists are the components of the organizational process assets that should be considered as an input to this process. Answer: A Staff acquisition is a component of the staffing management plan, which is an output of the Plan Human Resource Management process. 8. The Plan Human Resource Management process in the PMBOK® Guide lists several key environmental factors project teams should consider. Each of the following is a factor noted in this process except for which one? A. Organizational structures B. Location and logistics C. Standardized role descriptions D. Collective bargaining agreements Answer: C Standardized role descriptions are part of the organizational process assets input to this process. 9. You are developing a chart that links the project roles and responsibilities to the scope definition and WBS elements. Resource names will be assigned to each of the WBS elements so that you can see at a glance which activities will require what types of resources. You have just developed which of the following? A. RACI B. OBS C. RBS D. RAM Answer: D The responsibility assignment matrix (RAM) links WBS elements with resource names in a chart form. 10. This management plan documents how and when human resources are introduced to the project and later released. Sometimes, this plan includes a resource histogram. What type of plan is this? A. Communications management plan B. Resource management plan C. Staffing management plan D. Organizational management plan Answer: C The staffing management plan documents how and when human resources are brought on and off the project. Resource histograms plot resource time and hours needed in chart form. Chapter 8 1. You are a project manager for a large metropolitan hospital. You’ve worked with your current project team for a long time and have established a good working relationship with them. The team has worked on several major projects under your leadership and has always done an outstanding job. What stage of team development is this team in? A. Norming B. Forming C. Performing D. Conforming Answer: C The performing stage of team development occurs when a team works very well together and is productive and effective. Team members work harmoniously and their level of trust is high. 2. You are a project manager for a large metropolitan hospital. You’ve worked with your current project team for a long time and have established a good working relationship them. One of the team members has been promoted to a project manager and a new team member will be introduced. The new team member is well respected and your team is eager to get going on the next project. Which stage will the project team be in when the new team member comes on board? A. Norming B. Forming C. Performing D. Storming Answer: B When new team members are introduced, the team starts over again in the forming stage. 3. You’ve given your project team a specific set of expectations and promised them the new hardware and software they’ve requested as the motivation for completing the project on time. You believe they will perform at their best. Which motivational theory does this describe? A. Theory Y B. Hygiene Theory C. Maslow’s hierarchy D. Achievement Theory Answer: A Theory Y conjectures that people will perform their best if they know what’s expected of them and they have proper motivations. 4. You are a new project manager and have given your project team a specific set of expectations and promised them new hardware and software as the motivation for completing the project on time. Unfortunately, the project team does not perform to your expectations and the project is completed behind schedule. You later discover that the hardware and software you promised as motivation was not important to them. In the past, they’ve been given time off as a reward for completing projects on time and were publicly recognized at the company’s quarterly meeting for achieving their goals. If you had studied reward and recognition systems in the team development process, you would know that all of the following are true regarding reward and recognition except which one? A. Recognition should be carried out in a public setting like a company or department meeting. B. Rewards should be in proportion to the achievement. C. Recognition and rewards should be linked to performance. D. Motivators and rewards should be realistic and desirable to the recipient. Answer: A Recognition does not have to be carried out in a public setting. Some team members would rather receive private recognition from the project manager in a personal setting as opposed to being publicly recognized. 5. Which of the following are conflict resolution techniques? A. Forming, smoothing, confrontation, performing B. Storming, withdrawal, compromise, smoothing, forcing C. Smoothing, compromise, confrontation, withdrawal D. Forcing, smoothing, compromise, confrontation, withdrawal Answer: D The conflict resolution techniques are forcing, smoothing, compromise, confrontation, and withdrawal. Project managers should use the confrontation, also called problem solving, technique most often because it is the best of the resolution techniques. 6. At your recent status meeting, a problem surfaced that the group discussed. Jessica approached you the day after the meeting to express her concern that the problem was not really resolved because after thinking about it, she felt her concerns were still valid and should be addressed. The conflict resolution technique practiced at the status meeting was which of the following? A. Smoothing B. Forcing C. Confrontation D. Withdrawal Answer: A Smoothing is a temporary way to resolve conflict; one or more parties attempt to make the conflict appear less important than it is and thereby get agreement to their solution. After thinking it through, the folks who gave in to the solution resurface their original issues and the conflict comes back to life. Although it’s not listed in this question, compromise is the other conflict resolution technique. 7. Your project team works in two different buildings across the city from each other. The team has been struggling to perform effectively and has a difficult time resolving problems. You’ve approached your management team with which of the following solutions to help resolve this issue? A. Training B. Co-location C. Reward and recognition D. Mediation Answer: B Co-location is physically locating your team members in the same place or holding all team meetings in a common room and requiring the team members to attend. 8. Status review meetings serve all the following purposes except which one? A. To formally exchange project information B. To provide updated status on project progress C. To alert the project manager to potential risk events D. To encompass demonstrations that show the product progress Answer: D Status review meetings are not for show-and-tell purposes. You should conduct separate meetings for the purpose of demonstrating product or project progress. 9. You are performing at the highest level of achievement just for the satisfaction it brings. Your other basic needs have been met and you’ve reached a state of independence. Which of the following is true? A. This is the highest level of achievement of the Achievement Theory. B. This is the self-actualization level of Maslow’s hierarchy. C. This is the highest level of achievement of the Expectancy Theory. D. This describes the highest level of satisfaction of Theory Y. Answer: B Self-actualization is a state of independence where you perform at your highest level of achievement. 10. You are a project manager and have just passed the PMP exam. Due to your extensive experience and your newly awarded certification, you’ve been asked to head up your company’s new project management office. The team members assigned to this department do not have as much project management experience as you do, and none of them have received their PMP certification. As a result, they follow your lead on decisions regarding the project management processes you want to put into place. What type of power is this? A. Referent B. Legitimate C. Punishment D. Expert Answer: D Expert power occurs when the person being influenced believes the person doing the influencing is knowledgeable on the subject or has special skills that make them an expert. Chapter 9 1. You are a project manager that needs to obtain some services for your project from a local vendor. You have published the RFP and have received bids and proposals. You are using a predefined set of performance criteria to screen unsuitable vendors. Which tool and technique within the proposal evaluation techniques in the Conduct Procurements process are you using? A. Bidder conferences B. Screening systems C. Weighting systems D. Seller rating systems Answer: B Screening systems use predefined performance criteria to screen out unsuitable vendors. 2. What are the four contract life cycle processes? A. Procurement, solicitation, source selection, award B. Requirement, solicitation, requisitions, procurement C. Procurement, requisition, solicitation, sward D. Requirement, requisition, solicitation, award Answer: D Requirement is where the project and contract needs are established. Requisition is the process of preparing requests for proposals. Solicitation is obtaining bids and proposals from vendors, and award is where vendors are chosen and contracts are awarded. 3. In the midst of contract negotiations, your vendor reminds you that the issue you’ve just brought up for discussion was already decided at the last meeting and there is no need to discuss it again as a decision was already reached. This is an example of ___________________ . A. smoothing B. compromise C. withdrawal D. fait accompli Answer: D Fait accompli occurs when one party convinces the other that the issue under discussion is no longer relevant or cannot be changed. 4. All of the following are true regarding the Conduct Procurements process except which one? A. This process monitors vendor performance for adherence to requirements of the contract. B. Payment systems are used to process seller invoices. C. Contested changes must be resolved using arbitration. D. Terminating contracts for nonperformance requires a contract change request be submitted through the contract change control system. Answer: C Contested changes may result in disputes, claims, or appeals, which can be resolved between the parties themselves, through the court system, or using arbitration. 5. The Perform Quality Assurance process is concerned with all of the following except which one? A. Assures the project satisfies the quality standards set out in the quality management plan. B. Monitors results to assure they comply with quality standards. C. Is concerned with the correctness of the work. D. The project manager has the greatest impact on quality during this process. Answer: B Perform Quality Control is the process that monitors results to assure they comply with quality standards. 6. Quality improvements come about as a result of which of the following? A. Change requests B. Verification of work results C. Corrective actions D. Quality audits Answer: D Quality audits identify corrective actions that need to be implemented, and they assure the quality plan is adhered to, that applicable laws and standards are followed, and that the product of the project is fit for use. Their primary purpose is to identify quality improvements. 7. You are managing communications on your project. You know that all of the following are true regarding information exchange except which one? A. The sender is responsible for making sure the information is understood correctly. B. Putting the information in a format the listener will understand is known as encoding. C. The sender must present the information in a clear and concise format. D. Listeners filter the information they receive through their own knowledge of the subject and cultural influences. Answer: A Receivers are responsible for making sure they understand the information that’s been presented and for making sure they have all the information they need. If the receiver is unclear, they should ask clarifying questions or ask the sender to rephrase the information. 8. All of the following are methods the information management system might use to distribute information except ___________________. A. email B. electronic databases C. voicemail D. websites Answer: B Methods of distributing information might include email, hard copy, voicemail, videoconferencing, websites, and collaboration software. Electronic databases are a means to store information. 9. The tools and techniques of Manage Stakeholder Engagement include all of the following except which one? A. Communication methods B. Interpersonal skills C. Issue log D. Management skills Answer: C The tools and techniques for Manage Stakeholder Engagement are communication methods, interpersonal skills, and management skills. Chapter 10 1. All of the following are true regarding the Monitor and Control Project Work process except for which one? A. This process reports on and compares actual project results. B. This process monitors and controls project work from Initiating through the Monitor and Control process group. C. This process monitors and approves change requests. D. This process analyzes performance data and recommends preventive or corrective actions. Answer: B This process monitors and controls project work from Initiating through Closing 2. Which of the following processes must be integrated and coordinated during the Control Procurements process? A. Control Communications, Control Procurements, Control Quality, Perform Integrated Change Control, and Control Risks B. Direct and Manage Project Work, Control Communications, and Perform Integrated Change Control C. Plan Procurements, Control Communications, Control Quality, and Perform Integrated Change Control D. Direct and Manage Project Work, Control Quality, Perform Integrated Change Control, and Control Risks Answer: D The processes that must be integrated and coordinated during the Control Procurements process are Direct and Manage Project Work, Control Quality, Perform Integrated Change Control, and Control Risks. 3. Control Communications involves collecting, distributing, storing, archiving, and organizing project information. Work performance information is one of the primary outputs of this process. All of the following are true regarding work performance information except for which one? A. This information is used to analyze information such as the status of deliverables. B. Forecasts of ETC might be reported in this output. C. This might take the form of status reports, memos, or updates. D. The status of change requests might be reported in this output. Answer: C Status reports, memos, and updates are types of work performance reports. Work performance information is included in these reports. 4. Corrective action is from of a change request. Change requests (including approved change requests) are outputs of which process group and inputs to which process group. respectively? A. Outputs of Planning, Executing, and Monitoring and Controlling, and inputs to Executing and to Monitoring and Controlling B. Outputs of Executing and Monitoring and Controlling, and inputs to Monitoring and Controlling C. Outputs of Executing and Monitoring and Controlling, and inputs to Executing and Monitoring and Controlling D. Outputs of Planning and Executing, and inputs to Executing and Monitoring and Controlling Answer: A Change requests are an output of the Plan Procurement Management process (a Planning process) and are outputs of several Executing and Monitoring and Controlling process. Approved change requests are an input to the Direct and Manage Project Work process (an Executing process) and change requests are an input to the Perform Integrated Change Control process (a Monitoring and Controlling process). Change requests are also outputs of several Monitoring and Controlling processes. 5. Which of the following groups is responsible for approving or denying change requests after reviewing? A. CRB B. CCB C. CRC D. CCC Answer: B The change control board is responsible for reviewing and approving or denying change requests. 6. Change control systems serve all of the following purposes except which one? A. Tracks the status of change requests B. Defines the level of authority needed to approve changes C. Describes the impact of the change to the product description D. Documents the procedures that describe how to submit and manage change requests Answer: C Change control systems describe the management impacts of the changes as they pertain to project performance. 7. The configuration management system accomplishes all of the following except which one? A. Identifies the physical characteristics of the product of the project B. Controls changes to the physical characteristics of the product of the project C. Documents changes to verify that requirements are met D. Tracks the status of change requests and reports on them Answer: D Change control systems track the status of change requests and report on them. 8. Which of the following option isn’t a forecasting method? A. Judgmental methods and communication methods B. Methods such as simulation techniques, probabilistic forecasting, and ensemble forecasting C. Causal/econometric methods, including regression analysis, autoregressive moving average, and econometrics D. Time series methods Answer: A Forecasting methods include time series methods, causal/econometric methods, judgmental methods, and other methods (such as simulation, probabilistic forecasting, and ensemble forecasting). 9. Approved changes are an output of the Perform Integrated Change Control process. All of the following are true regarding this process except which one? A. Baseline changes should be documented in the change control system or the configuration management system. B. Baseline changes are implemented during the Perform Integrated Change Control process. C. You should document all the actions taken during this process in the project document updates output. D. Changes should be reflected from the current point in time forward. Answer: B All approved changes are implemented in the Direct and Manage Project Work process, not the Perform Integrated Change Control process. 10. The Control Stakeholder Engagement process concerns which of the following? A. Documenting important information about stakeholder interests in the stakeholder management plan B. Monitoring the communication needs of the project stakeholders so they receive what they need when they need it C. Documenting contact information and basic information in the stakeholder register D. Monitoring your stakeholder relationships and making certain the stakeholders continue to stay engaged on the project Answer: D Control Stakeholder Engagement involves monitoring your stakeholder relationships and making certain stakeholders stay engaged on the process. Chapter 11 1. Variance and trend analysis is a tool and technique of the Control Risks process. Variance analysis is used to gather and evaluate project performance information. Which of the following best describes variance analysis? A. It determines if project performance is improving or worsening over time by analyzing project results for variances. B. It is the most often used performance measurement tool. C. It compares the expected project plan results with the actual results to determine if variances exist. D. It examines schedule, cost, and scope project measurements together to determine if variances exist. Answer: C Variance analysis compares the expected project plan results with the actual results to determine if variances exist. 2. Risk responses and contingency plans are examples of which of the following? A. Corrective action B. Work authorization action C. Organizational action D. Preventive action Answer: D Risk responses and contingency plans, which are examples of preventive actions, reduce the potential impacts of the risk event if it occurs. 3. The tools and techniques of Control Risk are used throughout the life of the project to monitor risks. Which of the following lists the tools and techniques of this process? A. Risk reassessment, risk audits, variance and trend analysis, technical performance measurements, reserve analysis, and status meetings B. Risk audits, risk reviews, reserve analysis, and earned value analysis C. Risk reassessment, risk audits, additional risk identification and analysis, technical performance measurements, risk audits, risk reviews, and status meetings D. Trend analysis, earned value analysis, risk audits, reserve analysis, additional risk identification and analysis Answer: A The tools and techniques of Control Risk include risk reassessment, risk audits, variance and trend analysis, technical performance measurement, reserve analysis, and status meetings. 4. You are in the Control Costs process. You’ve recently received an approved change as a result of one of the cost performance measurements. This is considered a budget update. This revised cost estimate, or budget update, will require that all appropriate parties agree to a change to which of the following? A. Project costs B. Project schedule C. Cost baseline D. Cost estimates Answer: C Budget updates, which are a type of revised cost estimate, require changes to the cost baseline to reflect the new cost estimates. 5. This performance measurement is the direct and indirect costs of work to date. A. AC B. PV C. EV D. CV Answer: A Actual cost (AC) is the actual cost of the work to date, including direct and indirect costs. 6. You have gathered the following cost measurements for your project: EV = 120, AC = 115, PV = 135. Which of the following statements is true? A. The project is ahead of schedule and costs are lower than planned. B. The project is behind schedule and costs are lower than planned. C. The project is behind schedule and costs are higher than planned. D. The project is ahead of schedule and costs are higher than planned. Answer: B SV for this project is (120 – 135) = –15, so this project is behind schedule. The CV for this project is (120 – 115) = 5, which means the costs are lower than what was planned for the project at this point in time. 7. You have gathered the following cost measurements for your project: EV = 120, AC = 115, PV = 135, ETC = 100. What is the CPI and SPI? A. CPI = .89 and SPI = 1.04 B. CPI = .96 and SPI = 1.13 C. CPI = 1.13 and SPI = .96 D. CPI = 1.04 and SPI = .89 Answer: D CPI for this project is (120 / 115) = 1.04, and SPI for this project is (120 / 135) = .89. 8. You have gathered the following cost measurements for your project: EV = 200, AC = 190, PV = 135, BAC = 210. You expect the project to continue as it has in the past and that ETC uses the budgeted rate. Which of the following is the correct EAC given the circumstances (rounded up)? A. 179 B. 130 C. 200 D. 218 Answer: C The formula for EAC given these circumstances is as follows: EAC = AC + BAC – EV. Therefore, our calculation looks like this: 190 + 210 – 200 = 200. 9. You have gathered the following cost measurements for your project: EV = 132, AC = 115, PV = 135, BAC = 140. You expect future performance and variances to behave like past performance and variances. Which of the following is the correct EAC given the circumstances (rounded up)? A. 122 B. 147 C. 113 D. 8 Answer: A The formula for EAC when future performance is expected to be the same as past performance is EAC = BAC/ CPI. CPI is 132/115 = 1.15. EAC is 140/1.15 = 122. 10. You have gathered the following cost measurements for your project: AC = 200, PV = 215, EV = 200, BAC = 225. What is the ETC if cost variances are not excepted to be typical to what you’ve seen to date? A. 20 B. 25 C. 15 D. 10 Answer: B ETC is calculated this way: ETC = BAC – EV so our formula for this project looks like this: 225 – 200 = 25. 11. The Control Schedule process manages changes to the schedule. All of the following are true regarding Control Schedule except which one? A. Scope changes will impact the project schedule and will require schedule changes and revisions. B. Control Schedule defines how changes to the schedule will be managed. C. The work performance data output of this process includes schedule updates. D. Changes to approved baseline schedule start and end dates are called revisions. Answer: C Work performance data is an input of this process and work performance information is the output. 12. During the Control Quality process, this tool and technique included in the Seven Basic Quality Tools is used to monitor repetitive activities and plot sample variance measurements to determine if the product is in control (which is defined by being within plus or minus three standard deviations of the mean). Which tool and technique does this describe? A. Scatter diagrams B. Statistical sampling C. Pareto chart D. Control charts Answer: D Control charts measure the results of processes over time and display the results in graph form. The mean is shown in the middle of the chart, with the upper control limit and lower control limits shown as three plus or minus standard deviations from the mean. Processes are said to be out of control when they exceed the upper or lower control limits. 13. This tool and technique included in the Seven Basic Quality Tools of the Control Quality process displays work results in histogram form that rank-orders the most important factors by their frequency over time. Which tool and technique is it? A. Run chart B. Flow chart C. Pareto diagram D. Scatter diagram Answer: C Pareto diagrams are histograms that rank-order the most important factors (such as delays, costs, and defects) by their frequency over time. Pareto’s theory says you’ll get the most benefit from spending the majority of your time fixing the most important problems. 14. Which of the following is true regarding common causes of variances? A. They result from random variances, known or predictable variances, or variances that are always present in the process and are depicted in scatter diagrams. B. They result from random variances or variances that are always present in the process and are depicted in Pareto diagrams. C. They result from random variances, known or predictable variances, or variances that are always present in the process and are depicted in control charts. D. They result from random variances or variances that are always present in the process and are depicted in flow charts. Answer: C Common causes of variances are a result of random variances, known or predictable variances, or variances that are always present in the process. Control charts depict common causes of variances. 15. Which of the following are the tools and techniques of the Validate Scope process? A. Inspection and group decision-making techniques B. Variance and trend analysis and inspection C. Performance reviews and group decision-making techniques D. Variance and trend analysis Answer: A Inspection and group decision-making techniques are the tools and techniques of the Validate Scope process. 16. All of the following are true regarding scope changes except which one? A. Scope changes will likely require adjustments to some of the Planning processes. B. Scope changes will likely bring about quality improvements. C. Changes to project scope should also be accounted for in the product scope. D. Changes to the agreed-upon WBS constitute a scope change. Answer: B Quality improvements are realized as a result of quality audits, not scope changes. Chapter 12 1. Product verification determines if all of the work of the project was completed correctly and satisfactorily according to stakeholder expectations during which process? A. Validate Scope B. Close Procurements C. Close Project or Phase D. Perform Quality Assurance Answer: B Close Procurements determines if the work described in the contract was completed accurately and satisfactorily. This process is called product verification. Product documentation is verified and accepted during the Validate Scope process. 2. Your project was recently accepted by the stakeholders. The goals were achieved and the project was closed out. What type of project ending is this? A. Starvation B. Addition C. Integration D. Extinction Answer: D Extinction means the project has been completed and accepted by the stakeholders. It no longer exists, the goals have been achieved, and the project’s been closed out. 3. Which one of the following is the key activity performed during the Closing process group? A. Creating project archives for future reference B. Performing post-implementation audits C. Disseminating information to formalize project closure D. Identifying and documenting lessons learned Answer: C Disseminating information to formalize project closure is the key activity in the Closing process group. 4. Close Project or Phase is part of which Project Management Knowledge Area? A. Procurement Management B. Quality Management C. Integration Management D. Communications Management Answer: C Close Project or Phase belongs to the Project Integration Management knowledge area. 5. All of the following are true regarding procurement audits except which one? A. They’re performed during Plan Procurement Management through Close Project or Phase. B. They’re reviews of the process to determine if the process is meeting the right need. C. They identify lessons learned during the procurement process. D. They identify flawed processes or procedures and allow you to make corrections. Answer: A Procurement audits are performed during Plan Procurement Management and proceed through Close Procurements. 6. Your project has been completed, accepted, and closed out. You want to evaluate project goals and compare them to the product of the project, review successes and failures, and document possible improvements for future projects. You can accomplish this by performing which of the following? A. Procurement audit B. Project and product verification C. Post-implementation audit D. Identifying and documenting lessons learned Answer: C Post-implementation audits are not an official output of the Closing processes but are sometimes required by organizations to evaluate project goals, review successes and failures, and document possible improvements for future projects. 7. Attaining customer satisfaction is an important factor that project managers should be concerned about. The one key thing you can do as the project manager to ensure customer satisfaction? A. Monitor quality and take corrective action as necessary to keep the process in control B. Define the requirements and obtain sign-off from the stakeholders, ensuring that they agree to the requirements C. Provide accurate performance measurements throughout the project via the information distribution system D. Make certain all important project information is delivered during status meetings Answer: B The key thing that you can do to assure customer satisfaction is to document requirements and obtain sign-off on the requirements of the project. This ensures that stakeholders are aware of and agree to the requirements and they know what the project is expected to deliver. 8. As a certified project manager, you are responsible for ensuring integrity on your project. All of the following are helpful in ensuring integrity in the project management profession except which one? A. Following the PMI® Code of Ethics and Professional Conduct B. Following company guidelines regarding conflicts of interest and ensuring that your personal interests are not compromised C. Practicing honesty in reporting when required by your manager D. Practicing and applying established project management processes to your project Answer: C You should always practice honesty in reporting, whether your manager requires you to or not. 9. You have been appointed to head up a project management office for your organization. While working in this capacity, you develop project management templates and training materials that will be used to train others in your organization on project management techniques. The materials you’ve developed are very impressive, and you’re thinking about publishing and selling them for your own profit. Which of the following is the appropriate response? A. You decide to pursue publishing opportunities since you developed the materials and they belong to you. B. You decide to pursue publishing opportunities after you delete all the references to your company data. You know that most company data is confidential and you shouldn’t publish it. C. The materials you’ve developed were produced with the help of other team members and some vendor information you received at a recent conference. You decide not to pursue publication because you didn’t really write everything personally. D. Materials developed while on the job belong to your organization and as such are intellectual property. You decide to drop the idea altogether. Answer: D Intellectual property includes intangible items like software, patents, and business processes that are developed by an organization and have commercial value. Since you developed these materials for your company, the materials belong to the organization and you should not try to personally profit from them. 10. In the midst of your project, you discover that the byproduct of one of your newly developed manufacturing processes causes environmental damage. However, the damage is minimal and almost unnoticeable. Most inspectors will not likely examine this area for damage. What is the most appropriate response? A. Inform the project sponsors that there is no problem except for one small, isolated area that no one will ever ask about. Tell them you’ve corrected the problem so that it won’t occur again. B. Inform the project sponsors that you are investigating the production process to determine the extent of the problem and will take whatever corrective action is necessary. C. Do nothing since the damage is minimal and no one will really notice it anyway. D. Inform the project sponsors you’ve already taken corrective action even though nothing has been done to correct the problem. Since it’s unnoticeable, they won’t know if the problem has been fixed or not. Answer: B The most appropriate response is to inform the project sponsors that you are investigating the process to determine the extent of the problem and will take corrective action. This action ensures your integrity and adheres to honest reporting standards as required in the PMI® Code of Ethics and Professional Conduct. 11. You are working on a very prestigious, important project. Your project sponsor has promised a generous bonus if you can complete the project ahead of schedule. You know if you complete this project early, you’ll receive media attention and write-ups in some of the important journals for your industry. You’ve examined the schedule and found that the project is actually behind schedule at this point in time. You’re not worried and decide to do which of the following? A. Inform the project sponsor you are right on schedule and hope to complete the project early while taking no action to get the project realigned with the schedule. B. Delete activities from the project schedule to decrease the amount of time it takes to complete all project activities. C. Inform the project sponsor that you’re behind schedule and are not sure the project will be completed early. You tell the project sponsor that you’ll examine ways to get the project back on schedule but can’t promise an early delivery. D. Inform the project sponsor that some of the requirements on the project are really a separate project and shouldn’t be counted as part of the deliverables on this project Answer: C Honesty in reporting project status ensures your integrity as a project manager and is one of the standards outlined in the PMI® Code of Ethics and Professional Conduct. 12. You are a project manager for a company that has just merged with another company from a foreign country. Your new team is made up of members from your original organization and the merged company. Each company had its own unique culture that is very different from the other. Each country also has a different set of cultural standards. Everyone on the team is struggling with these cultural differences. You decide to do which of the following? A. Note those team members who are causing the most turmoil over the cultural issues so that it can be reflected in their upcoming performance appraisals. B. Inform management that they must come out with a new code of conduct for the newly formed organization soon. C. Require all team members to attend diversity training to help them become more aware of cultural differences. This will help them function more efficiently as a team. D. Inform the team of your role as project manager and require them to treat each other fairly and with respect. This establishes your authority right away and will show the team that you’re in control. Answer: C Recognizing and dealing with cultural differences is best accomplished with diversity training.
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