Test Bank - Chapters 1-7 (1) PDF

The authors identify three forces that combine to mandate the use of teams to solve problems. Identify the force that the authors did not name. a\) Explosion in the growth of certified project managers b\) Worldwide acceptance of the Project Management Institute c\) Interaction of supply and dema...

The authors identify three forces that combine to mandate the use of teams to solve problems. Identify the force that the authors did not name. a\) Explosion in the growth of certified project managers b\) Worldwide acceptance of the Project Management Institute c\) Interaction of supply and demand \*d) Evolution of worldwide competitive markets for the production and consumption of goods and services 2. The overwhelming majority of all projects are of what size? \*a) Small b\) Medium c\) Large d\) Very large 3. Identify the example that would not usually be considered a project. a\) Building a house b\) Developing a computer software application program c\) Hosting a wedding reception \*d) Assembly line manufacturing of automobiles 4. According to the authors, the prime objectives of project management are what? \*a) Scope, cost, time b\) Quality, scope, schedule c\) Customer satisfaction, budget, schedule d\) Cost, quality, customer satisfaction 5. The authors discuss four dimensions of project success. Which of the following is not one of those four dimensions? a\) Project efficiency \*b) Cost to the customer c\) Business impact on the organization d\) Opening new opportunities for the future 6. Which of the following is not one of the four dimensions of project success? a\) Opening new opportunities for the future \*b) Number of people working on the project c\) Impact on the customer d\) Business impact on the organization 7. There are three characteristics that all projects share. Which of the following is not one of those characteristics? a\) The project is unique b\) The project is a one-time occurrence \*c) The outcome of the project may change over time d\) The project has a finite duration 8. Which of the following is not a likely attribute of quasi-projects? a\) Lack of specificity in the project objective b\) A designated team working on the project c\) Undefined performance parameters \*d) Limited scope and budget 9. The production of weekly employment reports or the delivery of mail could be considered a what? a\) Project \*b) Non-project c\) Quasi-projects d\) Triple projects 10. Who, according to the authors, has played a significant role in the development of techniques for project management? a\) European navigators b\) Trader community c\) Brokerage firms \*d) The military 11. Shenhar has concluded that project success has four dimensions. Which of the following is not one of those dimensions? a\) The iron triangle b\) Impact on the customer \*c) Impact on the budget d\) Opening new opportunities for the future 12. Recent research focused on the direct objectives now suggest managers should use three measures. Which of the following is not one of those measures? a\) The iron triangle b\) Project ownership success c\) Project investment success \*d) Project time success 13. The organization that has the responsibility for maintaining and publishing The PMBOK Guidebook is called what? \*a) PMI b\) APM c\) PRINCE2 d\) IPMA 14. Which of the following is not a trend in project management? a\) Increase in virtual projects \*b) Decreasing importance of project managers c\) Importance given to strategic goals d\) Regular accomplishment of routine goals 15. A project that involves global teams with team members operating in different physical geographic locations and different time zones. a\) International project b\) Program c\) Online project \*d) Virtual project 16. Project management has emerged because the characteristics of our contemporary society demand the development of new methods of management. Of the many forces involved, which of the following are not paramount? \*a) Access to far more information via the Internet b\) The growing demand for a range of complex, customized goods and services c\) The evolution of worldwide competitive markets d\) The exponential expansion of human knowledge 17. The "stretched-S" pattern observed during the project life cycle, for the most part, is a result of which of the following? \*a) changing levels of resources used during successive stages of the project life cycle b\) changing attitudes of the people who work in the project. c\) difficulty in performing the individual activities of a project. d\) principle that work expands to fill the allotted time 18. The largest amount of effort applied to a project is during which of the following? a\) Conception \*b) Planning, scheduling, monitoring, and control c\) Selection d\) Evaluation and termination 19. Earned value is based on the concept that the percentage of project completion is closely correlated with which of the following? a\) The number of levels in the project b\) Relevance of the project \*c) Cost or the use of resources d\) Final assembly of the output 20. While there are a number of different Agile approaches, they all share the following general characteristics except which one? \*a) The project is divided into iterations most commonly called tasks b\) Based on its roots in lean management, there is an emphasis on simplicity c\) Project teams are self-m d\) Progress on the project is measured in terms of working product functionality 21. Associated with the scrum framework are three specific team roles. Which of the following is not one of those roles? a\) Product owner b\) Developers \*c) Scrum lord d\) Scrum master 22. Based on goal setting theory, Zwikael et al. found that there were three important dimensions that characterize the best and most attainable goals. Which of the following is not one of those characteristics? a\) The goals must be specific in terms of their target values and timing. b\) The goals must be attainable. \*c) The goal must be one that requires "stretching" to meet. d\) The goals must be comprehensive in reflecting the views of the key stakeholders. 23. Project success definitions by Meredith et al. (2019) and Zwikael et al. identifies three main measures that are generic and can apply to any project. Which of the following is not one of those measures? a\) Outputs achieves the iron triangle specifications \*b) The project was fully funded by the organization c\) The business case objectives are successful d\) The investment in the project is successful 24. A project selected using the sacred cow model is likely to be maintained until successfully completed or until when\> a\) The project exceeds its budget b\) The project falls behind schedule \*c) The boss recognizes the project as a failure and terminates it d\) The project manager is terminated 25. The Åstebro study (2004) of R&D projects found that all the characteristics below were excellent predictors of project commercial success, except for which one? a\) Technological opportunity \*b) Managerial support c\) Expected profitability d\) Development risk 26. A project selection criteria that focuses on how well new products would fit the firm's existing product line would be which of the following? a\) Sustainability b\) Comparative benefit model \*c) Production line extension d\) Operating necessity 27. If a system is being updated due to operating necessity, why was the project selected? a\) The system is worth saving at any cost \*b) The system is worth saving at the estimated cost of the project c\) The dimension of cost is not relevant to execution of the project d\) The cost overruns can be hidden in someone else\'s budget 28. A project selection criteria that focuses on environmental and social issues is what? \*a) Sustainability b\) Profitability c\) Production line extension d\) Operating necessity 29. The drawback of which model is that it fails to consider cash flows obtained once the initial investment has been recovered? \*a) Payback period b\) Average rate of return c\) Discounted cash flow d\) Profitability index 30. Which of the following is a type of numeric model? a\) The sacred cow b\) The operating necessity \*c) Payback period d\) The product line extension 31. A small project has a cost of \$12,000 to implement and is expected to have annual cash flows of \$3,000. What is its payback period? a\) One year b\) Two years c\) Three years \*d) Four years 32. Which of the following is the interest rate set by an organization as the minimum acceptable rate of return for a project? \*a) Hurdle rate b\) Acceptable rate c\) Internal rate of return d\) Net present value 33. If a company raises their hurdle rate, what happens to the net present value (NPV) of their projects? a\) Goes up b\) Unchanged \*c) Goes down d\) Positive NPV's go up, negative NPV's go down 34. If a company predicted rate of inflation goes down (deflation), what happens to the net present value (NPV) of their projects? \*a) Goes up b\) Unchanged c\) Goes down d\) Positive NPV's go up, negative NPV's go down 35. If the NPV for a project is less than zero, it indicates that the project will do what? a\) Report a profit loss b\) Report a profit gain \*c) Fail to cover its required rate of return d\) Fail to generate cash inflows 36. The underlying premise of the real options approach is which of the following? \*a) Delaying an investment may lead to greater returns or may lead to elimination of marginal projects b\) Rushing into an investment more quickly may lead to lower returns or may lead to elimination of marginal projects c\) Delaying an investment may lead to increased costs due to delays d\) Rushing into an investment more quickly may lead to less risk 37. Which of the following is not an advantage of the discounted cash flow approach to project selection? a\) Simple to use and understand b\) The accounting data is usually available \*c) The accounting data is possibly inaccurate d\) They can be adjusted to account for project risk 38. Which of the following is not a disadvantage of the discounted cash flow approach to project selection? \*a) It cannot account for project risk b\) It ignores all nonmonetary factors c\) It is strongly biased toward short-term solutions d\) It is highly sensitive to data errors in the early years of a project 39. Project Typhoon has a net present value of \$10,000 and a profitability index of 1.01. Project Cyclone has a net present value of \$10,000 and a profitability index of 1.10. Project Surf'sUp has a net present value of \$10,000 and a profitability index of 1.05. If only one project could be undertaken, the organization should select which project? a\) Project Typhoon \*b) Project Cyclone c\) Project Surf'sUp d\) Not enough information is provided 40. Occasionally, organizations will approve projects that are forecast to lose money when fully costed and sometimes even when only direct costed. Which of the following is not a good reason for doing this? a\) Acquire knowledge concerning a specific or new technology b\) Get the organization's "foot in the door" c\) Improve their competitive position \*d) They plan on cutting corners on work and material, or forcing subsequent contract changes to make up the cost 41. Scoring models that include both monetary and qualitative factors are generally known as what? a\) Weighted factor scoring models b\) Unweighted factor scoring models \*c) Cost--benefit analyses d\) Z-scoring models 42. Scoring models are most often used to overcome this disadvantage of profitability models. a\) The inability to account for the time value of money. b\) The inability to account for project results beyond the payback period. \*c) The inability to account for multiple decision criteria. d\) The inability to account for cash flow. 43. Real options seek to reduce which of the following risks in projects? a\) Political b\) Environmental \*c) Technological and commercial d\) Sociological 44. A project has four criteria, represented by A-D. There weights are 0.1, 0.2, 0.4, and 0.3. A particular project has scores of 4, 5, 8, and 9 respectively. What is its total score for the project? a\) 6.5 b\) 7.1 \*c) 7.3 d\) 26 45. Which of the following is not an advantage that favors the use of weighted scoring models? a\) Multiple objectives can be considered. \*b) Decision makers are compelled to stick with the decision once it has been made. c\) The models can be adapted to changes in managerial philosophy. d\) They can help avoid a short-term focus on profitability. 46. Which of the following is not a disadvantage that favors the use of weighted scoring models? a\) Scores are relative measures b\) Easy to include too many factors \*c) Can handle non-numeric criteria d\) Can only include profits in a non-numeric fashion 47. Which of the following demonstrates the quality of realism required of a project selection model? a\) It does not require special interpretation, data that are difficult to acquire, or excessive personnel. b\) It gives valid results within the range of conditions that the firm might experience. \*c) It reflects the multiple objectives of both the firm and its managers. d\) It deals with situations both internal and external to the project. 48. According to research by Sanchez and Robert (2010), which of the following is not a reason why strategic benefits may be difficult to appraise? a\) Not immediately realized b\) Difficult to quantify c\) May be confounded with other factors \*d) Easy to plan for when they occur 49. Which of the following should not be members of the project council? a\) Senior management \*b) Accounting department c\) Project owners or sponsors of major projects d\) Head of the project management office 50. Wheelwright identified four separate categories of projects. Which of the following are not one of those categories? \*a) Sacred cow projects b\) Platform projects c\) Breakthrough projects d\) R&D projects 51. Which of the following is not a common characteristic of highly successful strategic projects? a\) It creates a unique competitive advantage and/or exceptional value for its stakeholders. b\) It requires a long period of project definition dedicated to defining a powerful vision. \*c) It creates a satisfied project culture. d\) It needs a highly qualified PM who is unconditionally supported by top management. 52. Which of the following is not a common characteristic of highly successful strategic projects? \*a) It develops new knowledge and minimizes the use of existing knowledge. b\) It uses integrated development teams with fast problem-solving capability. c\) Its project team has a strong sense of partnership and pride. d\) It needs a highly qualified PM who is unconditionally supported by top management. 53. Which of the following is not a symptom of a misaligned project portfolio? a\) Many more projects than management expected. b\) Inconsistent determination of benefits, including double counting. c\) Competing projects; no cross-comparison of projects. \*d) Low NPV. 54. Which of the following is not a symptom of a misaligned project portfolio? a\) "Interesting" projects that do not contribute to the strategy. b\) Projects whose costs exceed their benefits. \*c) Every project is assigned to a client. d\) Lack of tracking against the plan, at least quarterly. 55. Which of the following is not a purpose of the PPM? \*a) To insure that every project has a positive NPV b\) To identify proposed projects that are not really projects c\) To prioritize the list of available projects d\) To intentionally limit the number of overall projects being managed 56. Which of the following is not a purpose of the PPM? a\) To identify the real options that each project offers b\) To identify projects that best fit the organization's goals and strategy \*c) To train the PM d\) To identify projects that support multiple organizational goals 57. Which of the following is not a purpose of the PPM? a\) To identify codependent projects b\) To eliminate projects that incur excessive risk and/or cost c\) To balance short-, medium-, and long-term returns \*d) To eliminate projects with a negative NPV 58. Identify the attribute that is not normally associated with the job of functional manager. \*a) The functional manager is usually a generalist in the area being managed. b\) The functional manager is responsible for deciding what resources will be devoted to accomplishing the task. c\) The functional manager is administratively responsible for deciding how something will be done. d\) The functional manager is responsible for deciding who will do the work. 59. According to the authors, the analytic method, when applied to systems, focuses on what? a\) Assembling the components of a system into an integrated package b\) Building an array of individually designed and manufactured components c\) Calculating the cost and schedule requirements \*d) Dividing the components of a system into smaller and smaller elements 60. The ideal project manager should be who? a\) A direct, technical supervisor knowledgeable in the technology of the process being used \*b) Both generalist/facilitator and have a high level of technical competence in the science of the project c\) A facilitator and specialist with technical credibility d\) A technical specialist competent in principles of robust design 61. According to the authors, three major questions face the project manager with respect to synthesizing the requirements of a project. Identify the item that is not listed as one of the three major questions. a\) What needs to be done? \*b) Who will actually do the work of the project? c\) When must it be done? d\) How will the required resources be obtained? 62. According to the authors the project manager should be more skilled at which of the following? a\) General management b\) Technology \*c) Synthesis d\) Analysis 63. Which of the following is when someone takes over the project manager's job by exercising extremely close supervision over every action the project manager takes, or will actually tell the project manager precisely what to do. \*a) Micromanagement b\) Over-management c\) Turnover d\) Supermanagement 64. When managing a project, the project manager is responsible for which of the following? a\) Auditing the project b\) Executing the project \*c) Budgeting the project d\) Designing the project 65. The project manager\'s responsibilities are broad and fall primarily into three separate areas. Responsibilities to which of the following is not one of these. a\) The parent organization b\) The project and the client c\) The members of the project team \*d) Special-interest groups 66. The Project Management Institute (PMI) offers a certification for project managers. PMI offers examination for certification as which of the following. \*a) Project Management Professionals b\) Project Management Experts c\) Project Management Associates d\) Project Management Intern 67. The Tuckman ladder suggest that teams progress through four development phases. Those phases are listed below. Which one matches the following description: Teams function as a cohesive unit focused on accomplishing the goals of the project. a\) Forming b\) Storming c\) Norming \*d) Performing 68. The Tuckman ladder suggest that teams progress through four development phases. Those phases are listed below. Which one matches the following description: Team members come together for the first time and begin learning about their roles and responsibilities. \*a) Forming b\) Storming c\) Norming d\) Performing 69. The Tuckman ladder suggest that teams progress through four development phases. Those phases are listed below. Which one matches the following description: In this phase, the team members begin to establish team norms and team cohesiveness develops. Individual team members reconcile their behaviors to support the overall team, and trust develops. a\) Forming b\) Storming \*c) Norming d\) Performing 70. The Tuckman ladder suggest that teams progress through four development phases. Those phases are listed below. Which one matches the following description: Work on the project begins, but initially the team members tend to work independently, which often leads to conflict. a\) Forming \*b) Storming c\) Norming d\) Performing 71. How are most of the workers on a project acquired? a\) Temporary agencies \*b) Borrowed from functional departments c\) Transferred from functional departments d\) Subcontractors 72. Which of the following is not typically recommended to be considered when hiring new team members? a\) High-quality technical skills b\) Political, and general, sensitivity c\) Strong goal orientation \*d) Low self-esteem 73. Which of the following is not an important characteristic for effective team members? a\) High-quality technical skills b\) Political, and general, sensitivity c\) High self-esteem \*d) Strong sense of self 74. What is scope creep? a\) A change in the budget for the project b\) A reduction in what is required for the project in order to reduce the budget \*c) A change in what is required for the project d\) A change in the time for the project 75. Which of the following is one of the most serious crises for the project manager? a\) Change in the budget for a project b\) A key worker leaving the project c\) A technical issue \*d) Change in required project scope 76. Which of the following is not a phase in the Tuckman ladder? a\) Forming b\) Defining c\) Norming \*d) Mourning 77. Three approaches are paramount for handling complex projects. Which of the following is not one of those approaches? a\) Communicating effectively with all stakeholder groups \*b) Skill with Microsoft Project or other similar software c\) Learn as much about the client as possible d\) Leadership 78. The project manager must make trade-offs between project progress and process. Conceptually, this involves trade-offs between which functions? \*a) Technical and managerial b\) Schedule and cost c\) Performance and schedule d\) Cost and performance 79. During the buildup phase, the project goals, in order of importance, are what? \*a) Schedule, scope, cost b\) Cost, schedule, scope c\) Schedule, cost, scope d\) Cost, scope, schedule 80. A project manager must make trade-off decisions between the project, the firm, and what? a\) Other projects \*b) Their own career goals c\) Demands of the functional managers d\) Completion time for the project 81. Most of the time spent by a project manager is spent how? a\) Attending technical workshops b\) Overseeing the workforce c\) Filing paperwork \*d) Communicating 82. In order to meet the demands of the job of project manager---acquiring adequate resources, acquiring and motivating personnel, dealing with obstacles, making project goal trade-offs, maintaining a balanced outlook, and establishing a broad network of communication---the project manager must be a what? \*a) Highly skilled negotiator b\) Hard worker c\) Effective budgeter d\) Cultural expert 83. According to the authors, of all the characteristics desirable in a project manager, which is the most important? a\) Availability b\) A strong technical background c\) Ability to keep the project team happy \*d) Drive to complete the task 84. Listed below are three aspects of leadership. Which one is associated with the following competency: Engaging communication, managing resources, empowering, developing, and achieving. a\) Intellectual quality \*b) Managerial quality c\) Emotional quality 85. Listed below are three aspects of leadership. Which one is associated with the following competency: Self-awareness, emotional resilience, motivation, sensitivity, influence, intuitiveness, and conscientiousness? a\) Intellectual quality b\) Managerial quality \*c) Emotional quality 86. Listed below are three aspects of leadership. Which one is associated with the following competency: Critical analysis and judgment, vision and imagination, and strategic perspective? \*a) Intellectual quality b\) Managerial quality c\) Emotional quality 87. Project managers must have this, which refers to possessing enough technical abilities to direct the project. \*a) Technical credibility b\) Managerial credibility c\) Negotiation skill d\) Drive to complete the task 88. The project manager needs what kind of credibility? a\) Technical and personal b\) Administrative and personal \*c) Technical and administrative d\) Technical and financial 89. The ability to sense conflict early, then confront and deal with it before the conflict escalates into interdepartmental and intradepartmental warfare is which of the following attributes? a\) Credibility \*b) Sensitivity c\) Competency d\) Ability to handle stress 90. Projects are conducted in four important environments. They are what? \*a) Economic, political, legal, and sociotechnical b\) Internal, external, transitional, and multicultural c\) Routine, unique, fast-paced, and complex d\) Profit, not for profit, government, and industry 91. A party to a conflict will usually be satisfied when the level of frustration has been what? a\) Increased by the domination of the other party \*b) Lowered to the point where no action against the other party is contemplated c\) Lowered because the party realizes the hopelessness of continuing the conflict d\) Eliminated because the party has surrendered to the other party 92. There are probably more opportunities for this in handling conflicts and negotiations than in any other aspect of project management. a\) Errors in judgment \*b) Ethical missteps c\) Project team strife d\) Project manager burnout 93. Eskerod notes that there are four important reasons to be aware of the roles stakeholders may play in a project. Which of the following is not one of those reasons? a\) The project may need contributions from the stakeholders b\) Their resistance may negatively affect the project during its front-end formulation \*c) Unhappy stakeholders may not approve the project once it is completed d\) Stakeholders may have their own criteria for evaluating the "success" of the project 94. Using the Power-Interest Grid, the following relationships with the project manager matches up with low power, low interest? \*a) Monitor b\) Keep informed c\) Closely manage d\) Keep satisfied 95. Using the Power-Interest Grid, the following relationships with the project manager matches up with high power, low interest? a\) Monitor b\) Keep informed c\) Closely manage \*d) Keep satisfied 96. Using the Power-Interest Grid, the following relationships with the project manager matches up with high interest, low power? a\) Monitor \*b) Keep informed c\) Closely manage d\) Keep satisfied 97. Using the Power-Interest Grid, the following relationships with the project manager matches up with high interest, high power? a\) Monitor \*b) Keep informed c\) Closely manage d\) Keep satisfied 98. After identifying the stakeholders, what should be created to maintain key information about them including contact information, their requirements and expectations, what stage in the project they have the most interest in, and so on? \*a) Stakeholder register b\) Stakeholder plan c\) Project plan d\) Request for proposal 99. A useful tool for accessing the level of commitment needed from stakeholders is the what? \*a) Commitment Assessment Matrix b\) Power-Interest Grid c\) Stakeholder Survey d\) Administrative Matrix 100. The most common method of identifying stakeholders is what? \*a) Expert judgment of the project manager and project team b\) Surveying all users c\) Sending out invitations d\) Using corporate guidelines 101. The Project Management Institute has found that the primary method project groups use to obtain stakeholder feedback is what? a\) Email b\) Customer satisfaction surveys c\) A wiki \*d) Face-to-face meetings 102. During project formation, the organizational structure selected will have a major impact on the ways in which conflicts are handled. Lack of clarity about the relative power/influence/authority of the PM and the functional managers is a major component of all conflicts involving what? a\) Contractual obligations b\) Property rights c\) Budgeting \*d) Resource allocation and scheduling 103. During project build-up, the project should move from a general concept to what? a\) Implementation of plans \*b) A highly detailed set of plans c\) A project charter d\) A project contract 104. During the early program phases of the project lifecycle, Thamhain says that conflict intensity is the greatest with respect to what? a\) Cost b\) Human resource management c\) Time \*d) Priorities 105. The need to manage interfaces and to correct incompatibilities is likely to create technical conflicts during what phase of the project lifecycle? a\) Project formation b\) Project buildup \*c) Main program d\) Project phase out 106. During project build-up, if the project is independent and standalone, the project manager seeks a commitment of what from the functional departments? a\) Work b\) Materials \*c) People d\) Budgets 107. During project build-up, if the project is functionally tied down, the project manager seeks a commitment of what from the functional departments? \*a) Work b\) Materials c\) People d\) Budgets 108. During the main program phases of the project lifecycle, the conflict intensity is the greatest with respect to what? a\) Cost \*b) Schedules c\) Scope d\) Quality 109. Toward the end of the project lifecycle, conflict intensity is the greatest with respect to what? a\) Cost \*b) Schedules c\) Scope d\) Quality 110. What type of problems are comparatively rare during project phase-out because most have been solved or bypassed earlier? a\) Resource b\) Schedule c\) Authority \*d) Technical 111. Personality conflicts during project phase-out are often caused by what? a\) The absence of deadlines b\) The influx of newer technology \*c) Pressure to complete the project and anxiety about leaving the project d\) Distribution of expenses charged to the project 112. In order to move from the initial stage of the project to the execution stage, three fundamental issues must be handled. Which of the following is not one of these three? a\) The technical objectives of the project must be specified in necessary detail \*b) The budget must be finalized c\) Commitment of resources must be forthcoming from senior management. d\) The priority of the project must be set and communicated 113. The project manager must manage three important areas of trade-offs. Which of the following is not one of these three? \*a) Conflict b\) Time c\) Cost d\) Scope 114. Which of the following are not strategies people use to deal with conflict identified by Thomas? a\) Competing b\) Avoiding c\) Collaborating \*d) Forcing 115. Most of the conflicts that involve the organization and outsiders have to do with what? a\) Interpersonal differences b\) Cultural differences and status differences c\) Technical differences \*d) Property rights and contractual obligations 116. Conflicts within the organization typically differ from conflicts with outsiders in one important way. As far as the organization is concerned, these conflicts are what? a\) Conflicts between opponents \*b) Conflicts between allies c\) Conflicts between microcultures d\) Conflicts between subcultures 117. There are several words that are synonyms for negotiate. Which of the following is not quoted by the authors? a\) Arbitrate \*b) Bicker c\) Conciliate d\) Haggle 118. Which one of the following choices was not identified by the authors as one of the reasons why organizations enter into partnership arrangements with each other? a\) Avoidance of litigation b\) Diversification of technical risk \*c) Reducing internal conflict d\) Avoidance of capital investment 119. The authors mention three situations where the highest level of negotiating skill is required by the project manager. Which of the following is not one of them? \*a) Getting personnel from the functional manager b\) Using subcontractors c\) Changing project deliverables in midstream d\) Using input from multiple functional units in developing the project mission 120. Which of the following is not included in the authors' four part agreement for partnering? a\) Continuous senior management support b\) A method for resolution of problems and disagreements c\) Joint evaluation of the project's progress \*d) A set of team building exercises 121. According to the authors; which of the entities below is not a party to the chartering process? a\) The project manager \*b) The customer c\) Senior management d\) Functional managers 122. Principled negotiation is defined by four points. The following description matches which of these points in the list below? Effort should be devoted to finding a wide variety of possible solutions---or elements thereof---that advance the mutual interests of the conflicting parties. a\) Separate the people from the problem b\) Focus on interests, not positions \*c) Before trying to reach agreement, invent options for mutual gain d\) Insist on using objective criteria 123. Principled negotiation is defined by four points. The following description matches which of these points in the list below? To minimize the likelihood that the conflict will become strictly interpersonal, the substantive problem should be carefully defined. Then everyone can work on it rather than each other. \*a) Separate the people from the problem b\) Focus on interests, not positions c\) Before trying to reach agreement, invent options for mutual gain d\) Insist on using objective criteria 124. Principled negotiation is defined by four points. The following description matches which of these points in the list below? Attention should be given to finding standards that can be used to determine the quality of an outcome. a\) Separate the people from the problem b\) Focus on interests, not positions c\) Before trying to reach agreement, invent options for mutual gain \*d) Insist on using objective criteria 125. Principled negotiation is defined by four points. The following description matches which of these points in the list below? Knowledge of the other party's interests allows a negotiator to suggest solutions that satisfy the other party's interests without agreeing with the other's position. a\) Separate the people from the problem \*b) Focus on interests, not positions c\) Before trying to reach agreement, invent options for mutual gain d\) Insist on using objective criteria 126. According to the authors, the nature of negotiation as it applies to project management is the realization that few of the conflicts arising in projects have to do with what? \*a) Whether or not the task will be done b\) The precise design of the deliverable c\) How the design will be achieved d\) Who will do the work, when, and at what cost. 127. When dealing with conflict between parties, it is recommended that one do what in order to avoid the conflict becoming interpersonal? a\) Avoid the situation \*b) Define the substantive problem c\) Leisurely discuss the issue d\) Focus on interests 128. Which of the following is not one of the four points of principled negotiation? a\) Insist on using objective criteria b\) Focus on interest not positions \*c) Invent options for mutual gain before trying to reach an agreement d\) Separate people from the problem 129. There are many reasons for the rapid growth of project‐oriented organizations, but most of them can be subsumed in four general areas. Which of the following is not one of those four general areas? \*a) Low prices and low incremental costs have become absolute requirements for successful competition. b\) The development of new products, processes, or services regularly requires inputs from diverse areas of specialized knowledge. c\) The rapid expansion of technological possibilities in almost every area of enterprise tends to destabilize the structure of organizations. d\) The rapid expansion of technological possibilities in almost every area of enterprise tends to destabilize the structure of organizations. 130. Identify the statement that is not a major advantage of placing a project within a functional element of the parent organization. a\) The flexible use of staff increases. b\) Expertise is easily shared across multiple projects. \*c) The functional division tends to be oriented towards activities particular to its function. d\) The functional division serves as a base of technological continuity. 131. Identify the statement that is not a major disadvantage of placing a project within a functional element of the parent organization. a\) There is a tendency to suboptimize the project. b\) The project's client is not the primary focus of activity in the function. c\) The motivation of people assigned to the project tends to be weak. \*d) The functional division contains the normal path of advancement for individuals whose expertise is in the functional area. 132. Identify the statement that is not a major advantage of placing a project within the pure project organization. \*a) The functional manager retains full line authority over project team members. b\) The lines of communication are shortened in regards to the project's resources. c\) Centralized authority tends to increase the speed of decision-making. d\) A holistic approach to performing the project is supported. 133. Identify the statement that is not a major disadvantage of placing a project within the pure project organization. \*a) The project manager has full line authority over the project. b\) Projects duplicate effort because resources are not shared across projects. c\) Projects attempt to stockpile resources. d\) Policies and procedures of the organization are inconsistently used and enforced. 134. Identify the statement that is not a major advantage of placing a project in the matrix approach. a\) A single individual, the project manager, takes responsibility for managing the project. b\) The project will have access to representatives from the administrative units of the parent firm. \*c) The division of authority between the project manager and the functional managers is complex. d\) There may be less anxiety among team members about what will happen to them when the project is completed. 135. Identify the statement that is not a major disadvantage of placing the project in the matrix approach. a\) The balance of power between stakeholders is delicate. b\) Balancing the demands of competing projects using shared resource pools is complicated. c\) The principle of unity of command is violated. \*d) The project manager takes responsibility for managing the project. 136. When a project requires the integration of inputs from several functional areas and involves reasonably sophisticated technology, but does not require all the technical specialists to work for the project on a full-time basis, which organizational form should be used? a\) Functional \*b) Matrix c\) Pure project d\) Mixed 137. In which organizational structure does the project manager have the highest level of authority? a\) Functional b\) Weak matrix c\) Strong matrix \*d) Projectized 138. Which organizational structure has the highest availability of resources? a\) Functional b\) Weak matrix c\) Strong matrix \*d) Projectized 139. In which organizational structure does the project manager have ownership of the project budget? a\) Functional b\) Weak matrix c\) Balanced matrix \*d) Projectized 140. In which organizational structure is the project manager part-time? \*a) Functional b\) Balanced matrix c\) Strong matrix d\) Projectized 141. In which organizational structure is the project administrative staff full-time? a\) Functional b\) Weak matrix c\) Balanced matrix \*d) Projectized 142. A characteristic of which type of projects is that the work on these projects can cross time, space, organizational, and cultural boundaries? a\) Matrix b\) Projectized c\) Standard \*d) Virtual 143. Virtual teams, when composed, should consist of "boundary spanners" who number about one in every how many team members? \*a) 6-7 b\) 8-12 c\) 10-20 d\) 25-30 144. Gratton also offers some rules for success when organizations find they must use geographically dispersed virtual teams for some of their projects. Which of the following is not one of those rules? a\) Only virtual teams use for projects that are challenging and interesting. \*b) Pick the highest performers and assign them to the virtual team. c\) Include a few members in the team who already know each other. d\) Encourage frequent communication, but not social gatherings. 145. If the project manager controls when and what people do while the functional managers control who will be assigned to the project and what technology will be used, which organizational form is probably being used? a\) Projectized b\) Pure project \*c) Matrix d\) Weak project 146. If both functional and projectized divisions coexist in a firm, this would result in which organizational structure? \*a) Composite b\) Objective c\) Encompassing d\) Free-form 147. In which form of organizational structure, pure functional and pure project organizations may coexist in the firm? a\) Strong b\) Weak c\) Functional \*d) Mixed 148. When the major focus of a project must be on the in-depth application of a technology rather than on minimizing cost, meeting a specific schedule or achieving speedy response to change, which organizational form is apt to be the form of choice? a\) Strong b\) Weak \*c) Functional d\) Mixed 149. When a firm engages in a large number of similar projects, which organizational form is apt to be preferred? \*a) Pure project b\) Partial matrix c\) Functional d\) Mixed matrix 150. The process of dealing with uncertainties in projects that may affect the project for better or for worse has come to be known as what? a\) Scope management \*b) Risk management c\) Quality management d\) Procurement management 151. An organization structure that is based on the Financial, Human Resources and Operational departments rather than by project is termed as a what? a\) Matrix organization b\) Parent organization \*c) Functional organization d\) Projectized organization 152. A common objective of an organization's PMO is often created by organizations to do what? \*a) Establish consistent project management standards and methods b\) Deal with technological obsolescence c\) Train process managers d\) Administer application software 153. A major purpose of the project management office should be to serve as what? a\) The central location for all clerical support b\) The critical disaster recovery support \*c) A link between strategic management and project management d\) Maintenance for the project management library 154. To achieve its goals, PMOs and EPMOs commonly perform many tasks. Which of the following is not one of those tasks? a\) Establish and enforce good project management processes b\) Assess and improve the organization's project management maturity \*c) Ensure that all of the budgetary procedures for the client are followed d\) Offer consulting services to the organization's project managers 155. To achieve its goals, PMOs and EPMOs commonly perform many tasks. Which of the following is not one of those tasks? a\) Help project managers with administrative details such as status reports b\) Conduct project reviews and audits c\) Establish a project resource database and manage the resource pool \*d) Serve as a home for the project managers and functional workers assigned to the project one the project is completed 156. This member of the project team is in charge of product design and development and is responsible for functional analysis, specifications, drawings, cost estimates, quality/reliability, engineering changes, and documentation. \*a) Systems architect b\) Manufacturing engineer c\) Project controller d\) Support services manager 157. This person's task is the efficient production of the product or process the project engineer has designed, including responsibility for manufacturing engineering, design and production of code, unit testing, production scheduling, and other production tasks. a\) Test engineer b\) Contract administrator \*c) Development engineer d\) Systems architect 158. This member of the project team is responsible for the efficient production of the product of the process, including the manufacturing engineering, design and production of tooling, production scheduling, and other production tasks. a\) Project engineer \*b) Development engineer c\) Contract administrator d\) Support services manager 159. This person is responsible for the installation, testing, and support of the product (process) once its engineering is complete. a\) Development engineer b\) Systems architect \*c) Test engineer d\) Project controller 160. The person is in charge of the basic product design and development and is responsible for functional analysis, specifications, drawings, cost estimates, and documentation. a\) Test engineer b\) Contract administrator c\) Development engineer \*d) Systems architect 161. There are three specific scrum team roles associated with the scrum methodology. Which of the following is not one of those? a\) Product owner \*b) Client/customer c\) Developers d\) Scrum master 162. In Agile, this person works with customers to gain a clear understanding of their needs. \*a) Product owner b\) Client/customer c\) Developers d\) Scrum master 163. In Agile, this person is responsible for translating these desires into product1 requirements and developing the overarching strategy for the project. \*a) Product owner b\) Client/customer c\) Developers d\) Scrum master 164. In Agile, this person is responsible for doing the work associated with creating the new product or improving an existing product. a\) Product owner b\) Client/customer \*c) Developers d\) Scrum master 165. In Agile, after completing a task, this person selects the next task to work on based on the task priorities. a\) Product owner b\) Client/customer \*c) Developers d\) Scrum master 166. In Agile, this person is responsible for updating the sprint backlog at the end of each day to reflect the work that was completed and to estimate the number of hours remaining for the task currently in-process. a\) Product owner b\) Client/customer \*c) Developers d\) Scrum master 167. This person has deep expertise on the scrum framework and Agile methodologies and techniques. a\) Product owner b\) Client/customer c\) Developers \*d) Scrum master 168. One of the main technical problems faced by the project manager is meeting what without compromising performance? a\) Supplier's targets \*b) Schedule and cost goals c\) Technical specifications d\) Cost and conflict goals 169. Project priorities are more of a concern in which stages of the project life cycle? \*a) Earlier b\) Later c\) Middle d\) Final 170. This behavior in a project manager would be highly correlated with unsuccessful project management. \*a) Conflict avoidance b\) Interdisciplinary problem solving c\) Win-win negotiation techniques d\) Risk mitigation 171. According to Dewhurst, a group of individuals working independently is what? a\) Disaster \*b) Name-only team c\) Functional team d\) Project team 172. Subletting tasks out to smaller contractors is known as what? a\) Contract management \*b) Subcontracting c\) Contract avoidance d\) Contract leasing 173. When the standard departments of the organization represent individual disciplines such as engineering, marketing, purchasing, and so on, the organization follows what? a\) Projectized management b\) Matrixed management \*c) Functional management d\) Mixed management 174. The firm or organization within which the project is being conducted is known as the what? \*a) Parent organization b\) Consulting firm c\) Project team d\) Stakeholder company 175. The project plan must be designed in such a way that the project outcome meets what? \*a) The objectives of the parent organization b\) Unauthorized requests for change in the project outcome c\) The requirements associated with scope creep d\) Only the expressed warranties identified in the contract 176. What is the tendency for the project objectives to be changed with little or no discussion with other parties actively engaged in the project? a\) Scope reference \*b) Scope creep c\) Effectiveness d\) Hierarchical planning 177. The success of the project launch meeting is dependent on the existence of what? a\) A project charter b\) The project\'s scope statement \*c) A well-defined set of objectives for the project d\) Project planning templates 178. Having key stakeholders involved early in the project tends to which of the following? a\) Increased communication errors b\) Increased project risk \*c) To create buy-in d\) To create more problems than it is worth 179. The sponsor and key stakeholders should participate in the project launch meeting for all of the following purposes except which of the following? a\) Agreeing on top deliverables b\) Discussing resourcing \*c) Finalizing contract details d\) Establishing scheduling tolerances 180. Planning a project should result in a number of outputs. Which of the following is not one of those outcomes? a\) Technical scope is established b\) Basic areas of performance responsibility are accepted by the participants \*c) Every possible risk is identified and a contingency plan is developed d\) Any tentative delivery dates or budgets and their tolerances set by the parent organization are clearly noted 181. When the project is to deliver a product/service to an outside client, the project's scope cannot be altered without whose permission? a\) Senior management b\) Project management c\) Project Engineer \*d) Client 182. A useful tool for facilitating the management of changes to a project's scope is the what? \*a) Requirements traceability matrix b\) WBS c\) Project charter d\) Mind map 183. This project plan element describes both the managerial and the technical approaches to the work. The technical discussion describes the relationship of the project to available technologies. \*a) Overview b\) Objectives c\) General approach d\) Contractual aspects 184. This project plan element should include profit and competitive goals as well as technical goals. a\) Overview \*b) Objectives c\) General approach d\) Contractual aspects 185. This project plan element lists all milestone events. It identifies the estimated time for each task and is used to construct the master project schedule. a\) Budget \*b) Schedule c\) Personnel plan d\) Evaluation methods 186. This element of the project plan lists all milestone events and/or phase-gates. \*a) Schedule b\) Resources c\) Personnel d\) Evaluation methods 187. This element of the project plan, at a high-level, this covers potential problems as well as potential lucky breaks that could affect the project. a\) Schedule b\) Resources \*c) Risk management plans d\) Evaluation methods 188. This element of the project plan contains a brief description of the procedure to be followed in monitoring, collecting, storing, and evaluating the history of the project. a\) Schedule b\) Resources c\) Personnel \*d) Evaluation methods 189. Once the project charter is completed and the project approved, a more detailed project plan can be developed. Which of the following issues is not addressed in the detailed project plan? a\) The process for managing change \*b) The salary for the project manager c\) A plan for communicating with and managing stakeholders d\) Establishing the cost baseline for the project 190. Once the project charter is completed and the project approved, a more detailed project plan can be developed. Which of the following issues is not addressed in the detailed project plan? a\) Developing a plan for managing the human resources assigned to the project b\) Developing a plan for continuously monitoring and improving project work processes c\) Developing the Work Breakdown Structure \*d) Developing a list of skilled workers to hire 191. Unfortunately, it is all too common for projects to go over budget and/or be completed late. What is the main reason? a\) An improperly constructed WBS b\) Too much scope creep c\) An unplanned for risk event \*d) Insufficient upfront planning 192. Which of the following is not another name for stage gates? a\) Phase gates b\) Quality gates \*c) Transition points d\) Toll gates 193. What is an approach that breaks the planning task down into the activities that must be done in each managerial level of the organization? Typically, the upper level sets the objectives for the next lower level. a\) Strategic planning b\) Organizational planning \*c) Hierarchical planning d\) Agile planning 194. During initial project planning, activities are identified and sorted. In completing this process, each level in the hierarchy should limit the number of activities to a range between what? a\) 5 to 10 activities b\) 0 to 5 activities \*c) 2 to 20 activities d\) 10 to 20 activities 195. When using a WBS, all of the work should roll up to the next level such that no extra work is required. This is referred to as the what? a\) Development rule b\) All-inclusive rule \*c) 100% rule d\) WBS rule 196. This is a specialized view of the action plan that focuses on who has what responsibility for each project task. a\) Resource histogram \*b) Linear responsibility chart c\) Project team directory d\) Scope management plan 197. A number of outcomes must be accomplished at a project planning meeting. Which of the following is not one of those outcomes? a\) Technical scope is established b\) Basic areas of performance responsibility are accepted by the participants c\) Any tentative delivery dates or budgets and their tolerances are clearly noted \*d) All potential risks are identified and a plan is developed to deal with those risks 198. There are 12 Agile Principles to guide the implementation of Agile Project Management (APM). Which of the following is not one of those 12 principles? a\) Our highest priority is to satisfy the customer through early and continuous delivery of valuable software. \*b) Define all of the requirements up-front so that changes are minimized later in the process. c\) Deliver working software frequently, from a couple of weeks to a couple of months. d\) Business people and developers must work together daily throughout the project. 199. There are 12 Agile Principles to guide the implementation of Agile Project Management (APM). Which of the following is not one of those 12 principles? \*a) Build projects around the most qualified individuals. b\) The most efficient and effective method of conveying information to and within a development team is face-to-face conversation. c\) Working software is the primary measure of progress. d\) Agile processes promote sustainable development. 200. There are 12 Agile Principles to guide the implementation of Agile Project Management (APM). Which of the following is not one of those 12 principles? a\) Continuous attention to technical excellence and good design enhances agility. \*b) Efficiency-the art of maximizing the amount of work that is accomplished in a given period of time-is essential. c\) The best architectures, requirements, and designs emerge from self-organizing teams. d\) At regular intervals, the team reflects on how to become more effective, then tunes and adjusts its behavior accordingly. 201. With regards to planning, the characteristic of "short-term plans that are adjusted as project progresses" applies to which approach? \*a) Agile project management b\) Traditional waterfall approach c\) Both approaches d\) Neither approach 202. With regards to planning, the characteristic of "attempts to stick to long-term plans made in advance" applies to which approach? a\) Agile project management \*b) Traditional waterfall approach c\) Both approaches d\) Neither approach 203. With regards to client involvement, the characteristic of "throughout the project" applies to which approach? \*a) Agile project management b\) Traditional waterfall approach c\) Both approaches d\) Neither approach 204. With regards to client involvement, the characteristic of "beginning and end of project" applies to which approach? a\) Agile project management \*b) Traditional waterfall approach c\) Both approaches d\) Neither approach 205. With regards to budgets, the characteristic of "budgets are secondary to performance" applies to which approach? a\) Agile project management b\) Traditional waterfall approach c\) Both approaches \*d) Neither approach 206. With regards to project execution, the characteristic of "broken down into incremental stages called iterations or sprints" applies to which approach? \*a) Agile project management b\) Traditional waterfall approach c\) Both approaches d\) Neither approach 207. With regards to project execution, the characteristic of "work completed based on comprehensive and highly structured plan" applies to which approach? a\) Agile project management \*b) Traditional waterfall approach c\) Both approaches d\) Neither approach 208. With regards to communications, the characteristic of "open, frequent (daily) communication among stakeholders encouraged" applies to which approach? \*a) Agile project management b\) Traditional waterfall approach c\) Both approaches d\) Neither approach 209. With regards to communications, the characteristic of "mainly for project control" applies to which approach? a\) Agile project management \*b) Traditional waterfall approach c\) Both approaches d\) Neither approach 210. With regards to communications, the characteristic of "communications is mainly via press releases" applies to which approach? a\) Agile project management b\) Traditional waterfall approach c\) Both approaches \*d) Neither approach 211. With regards to feedback on results, the characteristic of "at the end of each iteration" applies to which approach? \*a) Agile project management b\) Traditional waterfall approach c\) Both approaches d\) Neither approach 212. With regards to feedback on results, the characteristic of "at the end of the project" applies to which approach? a\) Agile project management \*b) Traditional waterfall approach c\) Both approaches d\) Neither approach 213. With regards to work structure, the characteristic of "integrated cross-functional team" applies to which approach? \*a) Agile project management b\) Traditional waterfall approach c\) Both approaches d\) Neither approach 214. With regards to work structure, the characteristic of "team members tend to work independently and rely on project manager to coordinate tasks" applies to which approach? a\) Agile project management \*b) Traditional waterfall approach c\) Both approaches d\) Neither approach 215. With regards to project leadership, the characteristic of "self-managed teams with project manager as facilitator of process" applies to which approach? \*a) Agile project management b\) Traditional waterfall approach c\) Both approaches d\) Neither approach 216. With regards to project leadership, the characteristic of "project manager allocates work to team members and controls process" applies to which approach? a\) Agile project management \*b) Traditional waterfall approach c\) Both approaches d\) Neither approach 217. With regards to team member feedback, the characteristic of "open communication encouraged by all team members" applies to which approach? \*a) Agile project management b\) Traditional waterfall approach c\) Both approaches d\) Neither approach 218. With regards to team member feedback, the characteristic of "feedback typically provided confidentially by project manager" applies to which approach? a\) Agile project management \*b) Traditional waterfall approach c\) Both approaches d\) Neither approach 219. With regards to process ownership, the characteristic of "the team owns" applies to which approach? \*a) Agile project management b\) Traditional waterfall approach c\) Both approaches d\) Neither approach 220. With regards to process ownership, the characteristic of "the project manager owns" applies to which approach? a\) Agile project management \*b) Traditional waterfall approach c\) Both approaches d\) Neither approach 221. With regards to process ownership, the characteristic of "the client owns" applies to which approach? a\) Agile project management b\) Traditional waterfall approach c\) Both approaches \*d) Neither approach 222. With regards to experimentation, the characteristic of "encouraged to identify ways to best meet customer requirements" applies to which approach? \*a) Agile project management b\) Traditional waterfall approach c\) Both approaches d\) Neither approach 223. With regards to experimentation, the characteristic of "discouraged so as to meet project deadline and stay on budget" applies to which approach? a\) Agile project management \*b) Traditional waterfall approach c\) Both approaches d\) Neither approach 224. With regards to scope, the characteristic of "flexible" applies to which approach? \*a) Agile project management b\) Traditional waterfall approach c\) Both approaches d\) Neither approach 225. With regards to scope, the characteristic of "rigid" applies to which approach? a\) Agile project management \*b) Traditional waterfall approach c\) Both approaches d\) Neither approach 226. With regards to change, the characteristic of "welcome and expected part of project" applies to which approach? \*a) Agile project management b\) Traditional waterfall approach c\) Both approaches d\) Neither approach 227. With regards to change, the characteristic of "resisted and often requires formal change order request" applies to which approach? a\) Agile project management \*b) Traditional waterfall approach c\) Both approaches d\) Neither approach 228. With regards to priorities, the characteristic of "customer is top priority followed by team and then scope" applies to which approach? \*a) Agile project management b\) Traditional waterfall approach c\) Both approaches d\) Neither approach 229. With regards to priorities, the characteristic of "schedule is top priority followed by scope and then team" applies to which approach? a\) Agile project management \*b) Traditional waterfall approach c\) Both approaches d\) Neither approach 230. With regards to measures of success, the characteristic of "value (extrinsic quality), quality (intrinsic quality), and constraints (cost, schedule, and scope)" applies to which approach? \*a) Agile project management b\) Traditional waterfall approach c\) Both approaches d\) Neither approach 231. With regards to measures of success, the characteristic of "cost, schedule, and scope" applies to which approach? a\) Agile project management \*b) Traditional waterfall approach c\) Both approaches d\) Neither approach 232. The process of coordinating the work and timing of the different groups working on multidisciplinary teams is called what? a\) Procurement management \*b) Integration management c\) Vertical management d\) Matrix management 233. Which of the following is a plan for allocating resources? \*a) A budget b\) Direct cost c\) A management plan d\) An allocation effort 234. If a project budget is over funded, it will often do what? a\) Produce waste b\) Encourage slack management c\) Improve morale \*d) Produce waste and encourage slack management 235. If a project budget is underfunded, it will often do what? a\) Stimulate increased performance b\) Improve utilization of resources \*c) Frustrate committed stakeholders d\) Reduce costs 236. Identify the statement that is not correct regarding a project budget. a\) The budget is included in a project plan. \*b) The budget is not an expression of organizational policy. c\) The budget serves as a control mechanism for the project. d\) The budget serves as a basis for comparison of planned and actual usage of resources. 237. The project's budget should do which of the following? \*a) Associate resource use with the achievement of organizational goals b\) Allow funds to be spent without linkage to achievement c\) Not reflect the timing of expenses associated with the use of resources d\) Never be changed during project execution 238. In order to develop a budget, the project manager must forecast what? a\) The resources required b\) When resources will be needed c\) The cost of resources \*d) All of the above 239. What form of estimating relies on well-known statistical correlations between various factors such as the total cost of a house relative to the square feet of living area? \*a) Parametric estimating b\) Statistical equivalence c\) Bottom-up estimating d\) Top-down estimating 240. The Pathfinder Mission was to go where? a\) The moon \*b) Mars c\) Saturn d\) Venus 241. Unless the project manager is familiar with the firm's what, it will be very difficult to exercise budget control? \*a) Accounting system b\) Budget plans c\) Marketing procedures d\) Cost accounting 242. This form of budgeting has the advantage of using individuals closer to the work to provide estimates of resource requirements. a\) Top-down budgeting b\) Work element costing \*c) Bottom-up budgeting d\) Iterative budgeting 243. These are where the defined responses to the risks are detailed, but their amounts are not yet precisely known. \*a) Known unknowns b\) Unknown knowns c\) Known knowns d\) Unknown unknowns 244. Unknown unknowns are not part of the baseline budget and are referred to as what? \*a) Management reserves b\) Contingency reserves c\) PMBOK reserves d\) Buffered reserves 245. A work element whose cost is fully developed would do which of the following? a\) Exclude the cost of labor and resources b\) Include only the profit and direct costs c\) Exclude the cost of special machinery and overheads \*d) Include direct costs plus overhead and G&A charges 246. Which cost should the project manager completely ignore in managing a project? a\) Labor b\) Material \*c) Overhead and G&A d\) Project manager should not ignore any costs 247. This type of budgeting allows income and expenditures to be aggregated across projects. a\) Category-oriented b\) Activity-oriented \*c) Project-oriented d\) Expense-oriented 248. The allowance for contingencies is usually in what range? a\) One to five percent \*b) Five to ten percent c\) Six to nine percent d\) Seven to eleven percent 249. Overhead costs are all of the following except which one? \*a) Generally within the project manager's control b\) Arbitrary c\) Source of annoyance and frustration d\) An amount that is unique to the firm 250. When a firm has professional cost estimators, what is their main responsibility? a\) Coordinate with the client to develop an acceptable cost estimate b\) Work with senior management to keep costs in line c\) Develop costs that maximize profits \*d) Reduce the level of uncertainty in cost estimates 251. Several issues face firms preparing bid proposals, particularly firms in the aerospace, construction, defense, and consulting industries. Which of the following is not one of those issues? a\) How should the proposal-preparation process be organized and staffed? b\) How much should be spent on preparing proposals for bids? c\) Is it ethical? \*d) How long will the project take? 252. This law states that adding manpower to a late software project makes it later. \*a) Brooks' Law b\) Murphy's Law c\) Smith's Law d\) The Rule of Thumb 253. Which of the following is not one of the risk management subprocesses? a\) Risk identification b\) Qualitative risk analysis \*c) Work breakdown schedule d\) Risk response planning 254. Which of the following is not a type of quantitative risk analysis? a\) FMEA b\) Decision tree analysis c\) Monte Carlo simulation \*d) Expert judgment 255. Deciding how to approach and plan the risk management activities for a project. \*a) Risk management planning b\) Risk identification c\) Qualitative risk analysis d\) Quantitative risk analysis 256. Determining which risks might affect the project and documenting their characteristics. a\) Risk management planning \*b) Risk identification c\) Qualitative risk analysis d\) Quantitative risk analysis 257. Performing a qualitative analysis of risks and conditions to prioritize their impacts on project objectives. a\) Risk management planning b\) Risk identification \*c) Qualitative risk analysis d\) Quantitative risk analysis 258. Estimating the probability and consequences of risks and hence the implications for project objectives. a\) Risk management planning b\) Risk identification c\) Qualitative risk analysis \*d) Quantitative risk analysis 259. Developing procedures and techniques to enhance opportunities and reduce threats to the project's objectives. a\) Quantitative risk analysis \*b) Risk response planning c\) Risk monitoring and control d\) Risk management register 260. Monitoring residual risks, identifying new risks, executing risk reduction plans, and evaluating their effectiveness throughout the project life cycle. a\) Quantitative risk analysis b\) Risk response planning \*c) Risk monitoring and control d\) Risk management register 261. Creating a permanent listing of identified risks, methods used to mitigate or resolve them, and the results of all risk management activities. a\) Quantitative risk analysis b\) Risk response planning c\) Risk monitoring and control \*d) Risk management register 262. Kaplan et al. (2012) have concluded that managing risks depends on which of three types of risks are being faced. Which of the following is not one of those risks? a\) Preventable risks b\) Risks the organization takes to conduct profitable or viable activities \*c) Unpreventable risks d\) External risks 263. The idea here is to eliminate the threat entirely. \*a) Avoid b\) Transfer c\) Mitigate d\) Accept 264. Although this approach does not eliminate the threat, it does remove the project contractor from the danger of the threat. a\) Avoid \*b) Transfer c\) Mitigate d\) Accept 265. The classic approach here for monetary risk is insurance, but other approaches are also available. a\) Avoid \*b) Transfer c\) Mitigate d\) Accept 266. This is a "softening" of the danger of the threat, either through reducing the likelihood it will occur, or through reducing its impact if it does occur. a\) Avoid b\) Transfer \*c) Mitigate d\) Accept 267. The risk is taken on, either because no other response is available or because the responses are deemed too costly relative to the risk threat. a\) Avoid b\) Transfer c\) Mitigate \*d) Accept 268. The goal here is to try to increase the probability the opportunity will occur. \*a) Exploit b\) Sharing c\) Enhance d\) Accept 269. This involves partnering with another party or parties who can better capture the value of the opportunity or at least reduce the cost of exploiting the opportunity. a\) Exploit \*b) Sharing c\) Enhance d\) Accept 270. This involves either increasing the probability that the opportunity risk will occur or increasing its impact if it does. a\) Exploit b\) Sharing \*c) Enhance d\) Accept 271. Here the project firm is prepared to capitalize on the opportunity should it occur, but is not willing to invest the resources to improve the probability or impact of the opportunity occurring. a\) Exploit b\) Sharing c\) Enhance \*d) Accept 272. An easy method of evaluating risk in certain situations by modifying project parameters and evaluating the corresponding changes is which of the following? \*a) Monte Carlo simulations b\) Risk mitigation c\) Project budgeting d\) Risk analysis