Project Management MCQ

Question 1 : The project takes shape during the -------------------- phase

1. implementation
2. planning
3. initiation
4. closure

Question 2 : A project can only be successful when there is no conflict between the ………………… and the local populace.

1. sponsor
2. workers
3. manager
4. management

Question 3 : Senior members of the project team must be

1. politically sensitive
2. active
3. dynamic
4. decision makers

Question 4 : Members of the project team need a strong

1. boss
2. problem orientation
3. manager
4. leader

Question 5 : Team members need a strong

1. goal orientation
2. coordination
3. leader
4. task orientation

Question 6 : Project workers need high

1. intention
2. self-esteem
3. goal
4. attitude

Question 7 : Project Management Team must be

1. intellectual
2. prudent
3. dynamic
4. physically competent

Question 8 : It is important to maintain the momentum in

1. implementation phase
2. planninig phase
3. initiation phase
4. closure phase

Question 9 : The Project Management Institute (PMI) was founded in

1. 1889
2. 1990
3. 1989
4. 2001

Question 10 : A secondary effect of using multidisciplinary teams to deal with complex problems is

1. conflict
2. tie up
3. agreement
4. failure

Question 11 : Models that are easily altered to accommodate changes in the environment or managerial policy, are

1. Profitability models
2. Scoring models
3. Numeric models
4. Nonnumeric models

Question 12 : Pareto Chart helps you find:

1. Minor sources creating the majority of problems
2. Majority of causes creating the minority of problems
3. Cause of variation
4. Cause of deviation

Question 13 : Which is an example of Triple Constraint?

1. Scope, Human Resource, Time
2. Quality, Scope, Human Resource
3. Cost, Human Resource, Time
4. Scope, Cost, Time

Question 14 : When a firm chooses a project selection model, the following criteria, based on Souder(1973), are most important.

1. Realism, capability, flexibility
2. b scope, cost
3. c Quality,flexiblity
4. d cost

Question 15 : Follwing is Numeric models

1. The Sacred Cow
2. Profitability
3. Competitive necessity
4. Product line extension

Question 16 : The payback period for a project

1. is the initial fixed investment in the project divided by the estimated annual net cash inflows from the project.
2. is the discounted cash flow method determines the net present value of all cash flows by discounting them by the required rate of return
3. Also known as the benefit–cost ratio
4. the internal rate of return is the discount rate that equates the present values of the two sets of flows.

Question 17 : You have created the project charter but could not get it approved by senior management. Your manager and his boss have asked you to begin the project anyway. Which of the following actions is the best thing to do?

1. Focus on other projects that have a signed charter.
2. Start work on critical path tasks.
3. Update your Project Risk Log.
4. Show your manager the impact of proceeding without approval.

Question 18 : The project charter should be issued by whom?

1. One or more functional managers
2. The head of the performing organization
3. A manager external to the project
4. The CFO

Question 19 : Stakeholder identification should be performed at what point in a project?

1. Only during the planning phase
2. Only during project initiation
3. At the end of the project
4. Continuously throughout the project

Question 20 : Which of the following is not true about project charter?

1. Project charter is written by the Project Manager.
2. Project charter defines the purpose of the project
3. Identify and authorizes the Project Manager
4. Project charter is authorized by Executive Management

Question 21 : Develop project charter is part of which process group?

1. Initiation
2. Planning
3. Executing
4. Monitoring and Control

Question 22 : What is a statement of work?

1. A narrative description of the deliverables of a project
2. A final bill for a project
3. A project employee's timesheet
4. Proof that an employee can perform the duties required by a project

Question 23 : Models that are easily altered to accommodate changes in the environment or managerial policy, are

1. Profitability models
2. Scoring models
3. Numeric models
4. Nonnumeric models

Question 24 : The models designed to overcome some of the disadvantages of profitability model is known as

1. Scoring models
2. Factoring models
3. Evaluation models
4. Gradation models

Question 25 : The Delphi technique was developed by the Rand Corporation in

1. 1989
2. 1978
3. 1969
4. 1990

Question 26 : In profitability models, the variation falls into general category of

1. 2 types
2. 3 types
3. 4 types
4. 6 types

Question 27 : Why is payback method often considered inferior to discounted cash flow in capital investment appraisal.

1. It is more difficult to calculate
2. It does not calculate how long it will take recoup the money invested
3. It only takes into account the future income of a project.
4. it does not take account of the time value of money

Question 28 : The amount of time required to recover the initial investment that the sponsors inject in the project.

1. Payback period
2. Net present value
3. Internal Rate of Return
4. Return on Investment

Question 29 : A project would normally be undertaken if its Net Present Value (NPV) is

1. Exactly the same as the NPV of the existing project
2. negative
3. positive
4. Zero

Question 30 : Advantage of Profitability model is

1. Models that do not include discounting ignore the timing of the cash flows and the time–value of money.
2. Payback-type models ignore cash flows beyond the payback perio
3. All use readily available accounting data to determine the cash flows.
4. All are sensitive to errors in the input data for the early years of the project.