CAMPUS Assesment Exam#25 - Answers

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Question: 1 ( Incorrect - Skipped )

Which of the following skills would be considered "hard" skills?
A. Negotiation skills
B. Soc ial skills
C. Technical skills
D. People skills
Executing - Human Resources Management
The correc t answer is C, tec hnical skills are considered "hard skills". People skills and social skills are referred
to as "soft skills".

When negotiating with functional managers for resources, you should consider personal charac teristics,
competency levels, and availability of the potential team members. Which of the following proc esses describes
negotiations ac curately?
A. A tool and technique of Acquire project Team
B. A tool and technique of Develop Human Resource Plan
C. A tool and technique of Develop Project Team
D. A tool and technique of Management Project Team
Negotiations are a tool and technique of the Acquire Project Team proc ess.

On 28'th of May, George, the executive of Jet Airlines called me and said, "Joe, I can finally give you Singapore-
Hyderabad air ticket in USD 1354/- and Hyderabad-Singapore, via Chennai would be in USD 1500/-". What kind of
contrac t this case resembles?
A. Time and Material
B. Fixed Price
C. Cost Reimbursable
D. Cost Plus Incentive
Planning - Procurement Management
In this type of contract, one price is agreed upon for all the work i.e. travel from Singapore to Hyderabad
within USD 1354/-. Similarly travel from Hyderabad to Singapore, via Chennai within USD 1500/-
The two closing process are :
A. Close proc urement and Verify sc ope
B. Close Procurement and Close Project
C. Project closure and T eam release
D. Release team and lessons learned
Closing - Proc urement Management
Proc urement close and Project Closer process are two closer processes; before you c lose your project make
sure that all proc urements are closed.

This output of the Define Ac tivities process should contain all the sc heduling activities that will be performed for
the project, with a sc ope of work description of each activity and an identifier.
A. Milestone List
B. Activity List
C. Precedence Diagram
D. Resource Calendar
Planning - Time Management
The Activity List which is an output of the Define Activities proc ess and extension of the WBS contains all the
ac tivities of the project and a desc ription of eac h activity. The Milestone List is an output of Define Activities
however, records major ac complishments and documents whether the milestone is mandatory or optional. The
remaining c hoices are not outputs of the Define Activities proc ess.

Getting project team members assigned when there is no one in-house with the nec essary skill sets is known as
________.
A. Acquisition
B. Proc urement Management
C. Management details
D. Pre-assignmentt
Acquisition is the ac t of ac quiring from outside the organization those skills needed to complete a project.

You have four projects and c an only choose one. Project A is being done over a six year period and has a net
present value (NPV) of $70,000. Projec t B is being done over a three year period and has a NPV of $30,000.
Project C is being done over a ten year period and has an NPV of $40,000. Projec t D is being down over a one
year period and has a NPV of negative $160,000. Which project should you c hoose?
A. Project A
B. Project B
C. Project C
D. Project D
Initiating - Integration Management
You should always pick the project with the highest Net Present Value (NPV), which in this case is Projec t A.
Since the NPV formula already takes into consideration the time value of money, you c an completely ignore
the number of years. Also remember if NPV is negative, like Project D, you always reject it.

Which of the following BEST describes the records management system?
A. A system is used by project manager to manage contract and procurement documentation and
records
B. A library that stores the lessons learned for past projec ts
C. A fling system to store paid invoices and Bills
D. A system to store human resource records, salary information and work performance history
A records management system consists of a specific set of processes, related c ontrol functions, and
automation tools that are consolidated and combined as part of the project management information systems.
The records management system is one of the tools that you use in the Contrac t Closure process.

Jac kie is a Project Manager working with a team of more than 30 people. One of her subordinates tells her that
the team members at the lowest level are lazy, and that they need to be supervised more closely. Jac kie responds
that the workers are as committed to the project as she is, that they are ambitious and self-disc iplined and do
not need to be watched every minute of the day; instead, Jac kie proposes that each worker should be given more
responsibility. Which type of manager is Jac kie?
A. Maslow’s hierarchy of needs theory
B. Theory Z manager
C. Theory Y manager
D. Theory X manager
According to Mc Gregor’s Theory of X and Y , Jac kie is a Theory Y manager. She trusts her employees to be self
motivated and believes that they do not need to be watched every minute.
Theory X managers feel the way the subordinate does in this questions, they feel that workers are lazy and
need to be watched constantly.
Theory Z is a management theory where giving workers jobs for life motivates them to perform their best.
Maslow’s hierarchy of needs theory says that individuals must meet the most basic needs before they can
reach peek performance.

You and your friend Jenny are both PMPs. Jenny is advertising herself loc ally as an expert in planning resources.
She is listing projec ts you know she has never worked on. What should you do?
A. Nothing. Unless Jenny ac tually gets a job in the field, no violation has occurred.
B. Confront Jenny and tell her you feel she is engaging in false advertising. Ask her to pull the ad, or
you will have to report her to PMI.
C. Gather the data you need, including c opies of the ad, and report Jenny to PMI.
D. The doctrine of caveat emptor applies here. Let the buyer beware. You do not have any obligation to do
anything.
Professional & Social Responsibility - Framework
Although it is tempting to believe Answers A and D, as a PMI member or candidate, you have a responsibility
to report possible violations of the code of professional conduct. Answer C is incorrect because you need to
first disc uss the situation with Jenny, exercising the "reasonable and c lear fac tual basis" rule.

As you develop your project closeout documents, you begin to review the projec t deliverables and develop your
checklist of projec t requirements. You can typically find the requirements for formal close procurement in the
A. Project Close management plan
B. Contract terms and conditions
C. Work breakdown structure
D. Project Charter
Answer B is correct. If there are such formal proc edures required during close procurement, they can typically
be found in the contrac t terms and c onditions

Which of the following is the last ac tivity while closing a project?
A. Creating lessons learned
B. Releasing resources assigned to the project
C. Creating archives
D. Updating skills inventory
Closing - Integration Management
Choice A is incorrect bec ause creating lessons learned is part of the project ac tivity, though it is carried
during c losure, this is one of the ac tivities which is performed early during closure stage.
Choice B is correc t. The projec t team creates the lessons learned, project archives and the project manager
updates HR rec ords for the new skills ac quired by individuals while working on the project. Releasing the
resources for new assignments would be the last step in closure.
Choice C is incorrect. Creating archives is carried out by the project team members and this is not the last
ac tivity bec ause releasing resources would be the last activity of closure of the project.
Choice D is incorrect. Resources are released only after updating the skills inventory with the concerned
department.

Which one of the following methods of estimating will provide the most accurate estimate?
A. Top-down estimating
B. Top-down budgeting
C. Bottom-up estimating
D. Parametric estimating
Bottom-up estimating takes the longest to complete of all the estimating approac hes, but it is the most
ac curate estimating method.

Which of the following would fac ilitate a larger participation of sellers against an invitation to bid?
A. Bidders' conference
B. Advertising
C. Letter of intent
D. Single source order
Executing - Proc urement Management
A) Bidders' c onference is to ensure a common and c orrec t understanding of the scope of work being procured
B) The purchaser may insert advertisements in newspapers, magazines, or in any other media meant for public
distribution to secure a larger response to the inquiry for proc urement
C) Letter of intent is an intimation of intent to hire and it is not a tool for solicitation
D) Single source order implies a preferred supplier of the goods or services and restricts competition

You are through with creating an RFP and are now required to sec ure quotations. There are several sellers for the
spec ific sc ope but the project has limited time and resources. What should he do next, for securing quotations
against the RFP?
A. Choose the prospec tive sellers recommended by another colleague
B. Consult the senior management and leave it to them to prepare the list
C. Refer to the qualified seller list and source selection criteria to make a decision
D. Put an advertisement in a local newspaper
A) Choice A is incorrect bec ause making a dec ision based on recommendations from a colleague is not a
systematic approac h.
B) Choice B is incorrect. The project manager's responsibilities include delivering all aspects of the project and
hence solicitation work should not be taken up to senior management.
C) Limited time and resources imply constraints in inviting and evaluating several quotations / bids. A systemic
approach would be to pre-sc reen vendors, by following the organization's approved vendor list for such
proc urement. The qualified sellers list along with the source selection criteria will allow you to make a dec ision
quickly and objec tively.
D) Choice D is incorrect as advertising is used for enhancing prospective seller list and in the stated
circumstances of limited resources and time, this may not be appropriate.

Company culture, organizational structure, infrastructure and marketplace conditions are all examples of?
A. Enterprise Environment Factors
B. Organizational Proc ess Assets
C. Project Management Body of Knowledge
D. Project Knowledge Areas
Initiating - Framework
These are examples of Enterprise Environment Fac tors.
The team is working on c reating a project team directory. Which proc ess is the team most likely engaged into?
A. Resource planning
B. Organizational planning
C. Staff acquisition
D. Information distribution
A) Resource planning c oncludes type and quantity of resources at the lowest level of WBS. Choice A is wrong
B) Choice B is incorrect. Organizational planning involves setting up the project organization with roles and
responsibilities defined
C) A projec t team directory lists all the project team members and other stakeholders. This means that the
project has either completed or nearing c ompletion of staff ac quisition
D) Information distribution is the application of communication management plan to make needed information
available to various stakeholders of the projec t. Thus choice D is incorrect

After a study of the work proc esses on the project, a quality audit team reports to the project manager that
irrelevant quality standards were being used for one of the WBS components in the projec t, which might lead to
rework. What was the objective of the project manager in initiating this study?
A. Quality control
B. Quality planning
C. Checking adherence to proc esses
D. Quality assurance
Executing - Quality Management
A) Compliance of work results to required specifications is a Quality Control activity.
B) Determining quality standards is a Quality Planning ac tivity.
C) Checking adherence to processes is a quality audit activity to ensure that standard operating proc edures
or job instruction documents are being followed for producing the deliverables of the proc ess.
D) Determining validity of quality standards, followed by the project is a Quality Assurance ac tivity.

If you would like to find out who will be approving changes in your project deliverables and documentation, you
can refer to the:
A. Change Control System
B. Project Plan
C. Organization Chart
D. Resource Assignment Matrix
Monitoring & Controlling - Integration Management
The correc t answer is A. Change control system is a collection of formal doc umented procedures that define
how project deliverables and documentation will be controlled, changed, and approved.

What is your SPI if EV = 8 and PV = 6?
A. 1.33
B. .66
C. 1.0
D. .75
Monitoring & Controlling - Cost Management
EV = 8 and PV = 6, and the formula reads SPI= EV/PV = 8/6, which is 1.33.

Your company has elected to use ISO 9000 standards. What is an attribute of ISO 9000?
A. It ensures your company follows its own quality procedures
B. It ensures that your company follows the set phases in each project from initiation to closure
C. It ensures that your company maps its processes to a proven process within the program
D. It ensures that QA and QC are integrated into the product or service your organization offers
Planning - Quality Management
A) ISO 9000 is not a quality management system, but a system to ensure an organization follows its own
quality procedures
B) Choice B is incorrect bec ause the given definition does not describe ISO proc ess
C) Choice C is incorrect as mapping process to a proven process / success proc ess is not ISO is all about
D) IS O does not intend to integrate QA and QC proc ess and this is not a complete information about ISO and
the choice D is incorrect

Which of the following is not a characteristic of a project risk event?
A. It has a cause.
B. The event, if oc curs, has a consequence.
C. It impacts the project objectives.
D. Probability of occurrence is zero.
Monitoring & Controlling - Risk Management
Project risk is an event or condition, which has a cause and if it oc curs, a consequence. We are concerned
with those risk events that have consequences on the project objectives, whether positive or negative. The
origin of risk is in the uncertainty element of projec ts and therefore the probability that the risk event would
oc cur is always more than zero.

Anything done to bring expec ted future sc hedule performance in line with the project plan is known as ________.
A. Reduction in Scope
B. Schedule arrangement
C. Corrective actions
D. Rebaselining
Monitoring & Controlling - Time Management
The PMBOK definition of corrective ac tions is any ac tion taken to bring anticipated (expected) future project
performance in line with the projec t management plan.

Inputs to Develop Project Team include
A. Human resource plan, enterprises environmental factors, organizational proc ess assets
B. Project staff assignment, project management plan, resource calendars
C. Team performance assessment, enterprises environmental fac tors, organizational process assets
D. Project staff assignments, enterprises environmental fac tors, organizational process assets
The inputs to the Develop Project Team process are projec t staff assignment, project management plan, and
resource calendars.

Your project has a budget of $130,000 and is expect to last ten months, with the work and budget spread evenly
ac ross all months. The project is now in month three, the work is on schedule, but you have spent $65,000 of the
project budget. What is your variance?
A. $65,000
B. $39,000
C. $26,000
D. $64,999
$26,000 is the variance. This is calculated by subtracting the actual costs of $65,000 from the earned value
of $39,000. EV is calculated by taking the 30 percent completion of the project against the BAC. The project
is considered to be 30 percent complete because it’s slated for ten months, is currently in month three, and is
on schedule. A, B, and D are all incorrec t calculations for the problem.

Which of the following is typically not used to help determine the Communications Requirements for a project?
A. Logistics of how many persons will be involved with the project and at which locations
B. Internal and external information needs
C. Organizational charts
D. WBS
Planning - Communications Management
Choice D, the WBS, is not used to determine the Communications Requirements for a project. The rest of the
answer choices include things that are used. Other things that are used to determine the Communications
Requirements for a project include: 1) project organization and stakeholder responsibility relationships; 2)
disc iplines, departments, and spec ialties involved in the project; 3) stakeholder information from the
stakeholder register and the stakeholder management strategy.

Your team must regularly hire a group of British engineers to test the product. You are not sure how many times
you will need to use the engineers, but you do know that the engineers are all located in the UK, charge a regular
rate, and need to be paid in British Pounds. What kind of cost is this?
A. Variable
B. Direct
C. Fixed
D. Indirect
Executing - Cost Management
This is a variable cost. By definition variable costs will vary based on the number of times you need to use the
resource.

You’re comparing the cost of purchasing a software product to the cost of your company programmers writing a
custom software program. You are engaged in which of the following?
A. Proc urement planning
B. Using expert judgment
C. Creating the proc urement management plan
D. Make-or-buy analysis
Make-or-buy analysis is determining whether it’s more cost effective to purchase the goods or services
needed for the projec t or more cost effec tive for the organization to produce them internally.

Which of the following statements best describes project objectives?
A. Business case for the projec t
B. Purpose of the project
C. Deliverables of the project
D. Quantifiable criteria to determine project success
Planning - Integration Management
Project objectives are quantifiable criteria to measure project performance. These should include cost,
sc hedule, and quality aspec ts.

One of your team leaders is preparing the network diagram for technical projec t. The projec t has several modules
that are identical to those of a previous project you have dealt with. What should the team do to expedite the
completion of the network diagram?
A. Use fragments from the previous project's network.
B. Use the previous project's WBS.
C. Use the previous project's network diagram.
D. Use the previous project's ac tivity list.
Fragments or sub nets are portions of a network diagram. The identical portions of the previous project's
network diagram could be useful in completing the network diagram of the current project.
Tim wants to get a contrac t badly. When he hears that Smart Consulting is his competition, he says to the hiring
manager, "I heard that Smart Consulting has a poor Quality Rec ord", even though he really does not know their
Quality Rec ord. Has Tim crossed the line?
A. Yes. Tim has violated the member standard of knowingly engaging in an activity intended to
cause harm.
B. No. Tim is merely suggesting there is a problem, and he is trying to get the business for himself. The
company has a responsibility to look into the financials anyway.
C. Yes. Tim has violated the confidentiality of Smart Consulting.
D. Both A and C.
By implying Smart Consulting is having quality difficulties, Tim has crossed the line and violated PMI member
ethics. Legally this is called slander, where you speak negative untruths about someone else and c ause harm.
Answer B is not true based on the fac ts in the question. Answers C and D are incorrect because Smart
Consulting’s confidentiality has not been violated.

Your project team has completed identifying risks, ranking them, and planning responses to critical risks and
secondary risks. What is the next step to be performed by the project manager?
A. Completing the risk management plan
B. Create responses to residual risks
C. Create Risk Breakdown structure
D. Determining contingency reserves
Planning - Risk Management
Choice A is incorrect, bec asue the risk management plan has already been created at this point.
Choice B is incorrec t, bec ause you do not create responses for residual risks.
Choice C is incorrect, bec ause the risk breakdown structure is defined previously in the risk management plan.
The correc t answer is D, you would next determine contingency reserves.

You are a project manager for Sc arem-Up-Stiff production c ompany. Your company develops and produces horror
movies for the big screen. Your latest project has been cancelled due to budget cuts for that genre of film. Which
of the following statements are true?
A. The project ended due to extinction because the funds were cut off.
B. The project ended due to integration because the funds were cutt off.
C. The project ended due to starvation because the resources were allocated to another film divison.
D. The project ended due to starvation because the funding was cut off.
Starvation occurs bec ause the project no longer receives the resources needed to continue. Resources would
include money (funding) such as presented in this question.

Resource leveling is:
A. Reduce the time needed to do the project.
B. Increase the total time nec essary to do all the tasks.
C. Schedule decision that are driven by resource constrains
D. Reduce resources to the lowest skill that is possible.
Resource leveling is form of schedule network analysis in which schedule decisions are driven by resource
constrains like, limited resources availability or difficult to manage changes in resources availability levels.

You are doc umenting the effectiveness of risk responses on your project. What tool and tec hnique are you
currently using?
A. Lessons learned
B. Documentation reviews
C. Risk audits
D. SWOT analysis
You are performing the Monitor and Control Risks process. Risk audits examine and doc ument the effectiveness
of risk responses in dealing with identified risks and their root causes, as well as the effectiveness of the risk
management process. Risk audits may be included during routine projec t review meetings, or separately in risk
audit meetings.
Doc umentation reviews and SWOT analysis are tools and tec hniques used to identify risks. You may document
lessons learned as a result of this proc ess as an output, but the questions was asking what tools and
techniques you are using.

Disciplinary ac tions should be done in accordance with ________ policy.
A. Project team
B. Sponsor
C. Government
D. Organizational
The organization should set policies concerning disc iplinary ac tions. You should contac t the HR department to
make sure you are in compliance with the organizational policy.

PV = 1900; EV = 1900; AC = 1900, what is the status of projec t?
A. we cannot determine the status of project with these details.
B. Project is ideal situation, project is doing as per planned
C. Project EAC is not provided
D. Project is not doing well since EV is 1900
Since all values provided are same, meaning project is doing as per plan and we are able to get work done for
eac h dollar spent. Hence project is ideal one.

Your project will require use of a high pressure punch press for five months. You c an rent the press for $10,000
payable at the end of eac h month. You may also choose to make a lump sum payment on the day the press is
delivered. Using a disc ount rate of 1% per month, the maximum lump sum payment you should choose to make is:
A. $50,000
B. $51,500
C. $48,500
D. $45,250
As you are paying at the month end the calculation will go like this 10,000/1.01 + 10,000/1.01^2 +
10,000/1.01^3 + 10,000/1.01^4 + 10,000/1.01^5, which equals $48,534. Thus choice C is the correct
answer.

The implementation of approved change requests, corrective actions, preventive ac tions, and defect repairs are
confirmed using this tool and technique of Perform Quality Assurance.
A. Plan Quality tools and techniques
B. Proc ess analysis
C. Inspec tion
D. Quality audits
Quality audits can confirm the implementation of approved change requests including corrective ac tions,
defect repairs, and preventive ac tions.

You are a project manager and your team is executing the work pac kages to produce a medical rec ords archive
and retrieval system. Two of the project's customers have just asked for changes that each says should be the
number one priority. What would be the BEST thing to do?
A. Have the project team meet with the customers to decide which would easiest and prioritize that one first.
B. Assign someone from the team to prioritize that one first.
C. Prioritize the changes without involving the team.
D. Deny both changes since you are in project execution.
Executing - Integration Management
Prioritizing the changes is the job of the project manager. Choice A is wrong because you do not want to
distrac t the team at this point - they should be doing the work. Choice B is wrong because it is the projec t
manager's responsibility to help prioritize competing demands. Choice D is incorrect, bec ause changes cannot
automatically be denied simply bec ause you are in exec ution.

You work for CTV, a privately held TV company that is planning to purchase a privately held T V parts supplier.
You know Stewart, who works at the supplier, and tell him a purchase is being considered. Your boss finds out
you've told Stewart. Are you in trouble?
A. Yes, you have violated the confidentiality of the company you work for.
B. No, the purchase plans are public.
C. No, neither company is publicly held, so this is not insider trading.
D. It depends on how seriously your boss feels you have violated the company's confidentiality.
Answer A is correct from a PMI perspective. Answer B is incorrect because the question does not state
whether the information is public. Answer C is incorrect because confidentiality does not depend upon the
public or private status of a company. Answer D is not the best answer.

The BCR for a project is evaluated as 1.8. What does this imply?
A. Profits from the project is 1.8 times the cost.
B. Cost of the project is 1.8 times the profit
C. Revenue from the project is 1.8 times the cost
D. Cost of the project is 1.8 times the paybac k on the project
BCR is benefit cost ratio and it measures the benefits (revenue) against cost of implementing the project.

What kind of a relationship is implied when completion of a successor is dependent on initiation of its predec essor?
A. Finish to Start
B. Finish to Finish
C. Start to Start
D. Start to Finish
A) A finish-to-start(FS) relationship between two activities implies that the initiation of successor is
dependent on the completion of predec essor. This answer is wrong
B) Choice B is incorrect bec ause a finish-to-finish relationship between two ac tivities implies that the
completion of successor is dependent on the completion of predecessor
C) A start-to-start (SS) relationship implies that the initiation of successor is dependent on the initiation of
predec essor and this answer is wrong
D) A start-to-finish (SF) relationship between two ac tivities implies that the completion of successor is
dependent on the initiation of its predec essor

Which of the following is not a purpose of the projec t charter?
A. Providing authority to the project manager
B. Providing a high-level desc ription of the project
C. Indicating business need
D. Defining scope statement
Choice D is the correct answer.
A sc ope statement is defined at the planning stage.
The project charter only defines high-level deliverables. It assigns a project manager with the defined
authority level to spend organizational resources, and it also desc ribes the business need of the project.

What is the objec tive of the Verify sc ope proc ess?
A. Obtaining formal acceptance of the project scope
B. Ensuring c orrectness of work results
C. Obtaining approval to proceed with project execution
D. All of the above
Monitoring & Controlling - Sc ope Management
A Verify Sc ope is the proc ess of securing formal acceptance of the project sc ope
B Ensuring correc tness of work results is a quality control process. Thus, choice B is incorrec t
C Project exec ution is managed by the project management team and verification of work results is not always
a nec essary requisite for proceeding with project execution. Thus, choice C is incorrect
D Choice D is incorrect bec ause only Choice A which is ac ceptance of the project scope is correct and others
are not incorrect

You are a project manager working on a one-year internal project. When should you c heck the results of the
Organizational Planning proc ess?
A. At the beginning of the project
B. During the early stages of the project
C. Throughout the project
D. At the end of the project
The correc t choice is C. The results of the Organizational Planning proc ess should be chec ked throughout the
project to ensure constant applicability.

You are a project manager in an Information T echnology (software) company, but you recently got an offer as a
project manager in a construction c ompany with a 45% salary hike. You have excellent technical knowledge in the
software field, but do not have much exposure to the Construction Industry. In this context,
A. You should attend training c lasses related to the construction industry to get more technical expertise in
the field
B. You should not take up the assignment because you will lose out on the experience and skills gained in the
information technology field
C. You should take up the assignment because similar project management skills will be required in
the construction company, as were required in the software company
D. You should try to get more information about project management in the construction industry and then
make an informed dec ision about whether to take up the new opportunity
According to PMI, project management skills span across industries and the knowledge gained in one industry
can be used in other industries. A project manager need not be technically qualified in the industry to
succeed. You are already an expert in project management, and managing construction work might be new,
however, this can be easily managed. You should be sure to inform your sponsor of your lac k of subject
matter knowledge.

The manager of an online retailer has a repetitive type of project; he creates a new product line every 3 to 4
months. The manager assumes he is involved in Operations rather than Project Management. Is he correct?
A. Yes, the manager is involved in operations as it's repetitive
B. No, the manager is involved in project management as each of the project has a start & end date
and a unique output
C. Yes, bec ause all projects are repetitive by nature
D. Yes, project duration that are less than 4 months are not considered as projec ts
These are definitely projec ts. You know this, bec ause the 3 c riteria for a project are that it must be
temporary, unique, and have a result.

You have identified a risk of a truckers' strike, which c ould result in the delay of materials delivery. As the project
manager what can you do to mitigate the negative effects of delay in procuring materials?
A. Get the approval from relevant Stakeholders to use the contingency reserves
B. Since the delay is confirmed, use the contingency reserves to buy materials from a local vendor
C. Put the project on hold until the truckers come bac k to work
D. Perform research to determine how best to mitigate this risk
Choice A is incorrect. The project manager has the authority to use the contingency reserves and does not
require an approval from stakeholders.
Choice B is correc t. The projec t manager should use the contingency reserves. This will mitigate the risk and
allow the project to continue without delay.
Choice C is incorrect. It is not a good idea to put the project on hold until truckers returns from strike. Such a
delay will hit the projec t sc hedule very badly including delaying the completion of the project.
Choice D is incorrect. The project manager should already have a mitigation plan for this risk.

Ronny is currently working on a major technology project involving Nano-technology and has been invited by a
think-tank to speak in their convention. He will be provided with expenses and an honorarium. Ronny eagerly
ac cepts. You are a PMP working on his project. How would you advise him?
A. Indicate that you think ac cepting an honorarium is a conflict of interest, and that he should not ac cept
the request.
B. Congratulate him. It is an honor to be asked to speak at a convention.
C. Tell him he may speak at the convention as long as he takes no fee or expense reimbursement.
D. Gather the information you need to report him as a violator of the PMI Code of Ethics.
Ronny has no c onflict of interest as long as he is not speaking for a specific supplier. Honorariums and
expenses are a common incentive for speakers. Answer A is incorrect bec ause there is no conflict of interest.
Answer C is also incorrec t bec ause ac cepting an honorarium and expenses is neither illegal nor unethical.
Answer D is incorrect for the same reasons.

What is the difference between projec t reports and performance reports?
A. Both mean the same thing.
B. Project reports are meant for customers while performance reports are meant for review within the team.
C. Project reports describe the status and issues while performance reports assess variances from
project objectives.
D. Project reports are on a weekly frequency and performance reports are event driven.
Monitoring & Controlling - Communications Management
Project reports reflect project status and issues while making no assessment on the project performance
objectives. Performance reports include variance or trend analysis and predict future project performance with
reference to the planned objec tives.

As a Projec t Manager you are currently foc using on trac king team member performance, providing feedback,
resolving issues, and c oordinating changes to enhance project performance. Which of the following proc esses are
you doing?
A. Human Resources Planning
B. Acquire Project Team
C. Develop Project Team
D. Manage Project Team
A) Ac quire Projec t Team involves obtaining the human resources needed to complete the project.
B) Human Resources Planning involves identifying and doc umenting project roles and responsibilities, reporting
relationships, and c reating the staffing management plan.
C) Develop Project Team involves improving the competencies and interac tion among team members to
enhance project performance.
D) Manage Project team involves trac king team member performance, providing feedbac k, resolving issues, and
coordinating changes to enhance projec t performance.

After a status meeting, one of your team members, Tony, pulls you aside and tells you that he was insulted by a
rac ist comment from another team member. You meet with the team member who made the comment, Meredith,
but she says that the other team member’s performance has been very poor. She has never made a comment like
this before at the company. You review the records, and see that she is correct Tony has consistently delivered
lower quality work than any other team member. What is the BEST way to handle this situation?
A. At the next team meeting, reprimand T ony for his poor performance and Meredith for the rac ist comment
B. Get Tony additional help for his poor performance
C. Reprimand Meredith in private for her racist comments, and follow the company policies for
reporting racism among employees
D. Meredith has never had this problem before, so she should be given another chance
Project managers must have a “zero tolerance” policy on racist remarks, or any other cultural insensitivity. If
there is an incident involving rac ism, sexism or any other kind of disc rimination, your top priority is to correct
that. Every company has a policy that guides how you handle this kind of situation, so a question involving
rac ism will usually involve the company’s policy or Human Resource department.

A single-source seller means what?
A. There is only one qualified seller
B. There is only one seller the company wants to do business with
C. There is a seller that can provide all aspects of the projec t procurement needs
D. There is only one seller in the market
A) Choice A is incorrect as it describes a “sole source” seller
B) A single-source seller means there is only one seller the company wants to do business with
C) Choice C is incorrect. There may be multiple sellers that can satisfy the projec t needs
D) Choice D is incorrect. Just bec ause there is only one seller in the market does not mean the seller can
adequately and fully fill the project needs

Inputs to Estimate Activity Resources are:
A. Project sc ope statement, Activity List, Ac tivity attributes, Milestone List, OPA
B. Enterprise Environmental Factors, Organizational Process Assets, Activity List, Activity
Attributes, Resource Calendars
C. Enterprise Environmental Fac tors, Organizational Proc ess Assets, Scope baseline
D. Dec omposition, Templates, Rolling Wave Planning, Expert Judgment
The inputs to the Estimate Ac tivity Resources process are Enterprise Environmental Fac tors, Organizational
Proc ess Assets, Activity List, Activity Attributes, Resource Calendars

While you are in the proc ess of ac quiring your project team members, the province administration council tells you
that they wants this project to be assigned to a specific consultant bec ause the consultant has already worked
on a previous project. You also find the same already mentioned in the projec t charter. Under which spec ific
"Ac quire Projec t Team" tool and tec hnique does this situation fall?
A. Pre-assignment
B. Negotiation
C. Acquisition
D. Virtual Teams
A) This is the case where the specific consultant is pre-assigned to the project. This case normally happens
as a part of competitive proposal when the project depends upon the expertise of a specific person, or the
person is selected as a part of the project charter
B) Negotiation technique is used to negotiate with various people like functional managers and other project
team members for getting them into the project
C) Ac quisition is a technique used to ac quire project team when the performing organization lacks the in-
house staff needed to complete the project
D) Virtual team is the one in case of which a group of people share the goal with little or no time spent in
meeting fac e-to-fac e. In such a case, communication effec tiveness plays a key role in the success of the
project

The projec t plan helps to fac ilitate:
A. Camaraderie
B. Good will
C. Communication
D. Strict disc ipline
Planning - Integration Management
A Choice A is incorrect bec ause project plan helps in managing the project effectively and does not create
any bond to anything
B Choice B is not right bec ause goodwill is not created because of a projec t plan, however, it is created
bec ause of success of the project
C Because the project plan shows what should be done to execute the project, various team members can
communicate about their progress on the project by referring to the projec t plan
D Choice D is not correct bec ause the core purpose of projec t plan is not to fac ilitate project discipline. This is
managed in project human resource management

You are on a time and materials contrac t. You have finished your work product an hour earlier than expec ted and
want to go home. However, you were expec ting a full eight hours of billable time to make your personal income
goals. What should you do?
A. Bill eight hours. Just bec ause you were especially efficient does not mean you shouldn't get a full day's
pay.
B. Stay an extra hour and surf the Web or chat with other co-workers to make up the time.
C. Find an additional one-hour task that you c an do and legitimately bill the client, even though they did not
ask for it.
D. Bill the seven hours you worked and go home.
Although this can happen, meeting your financial goals should be considered in your rate and c ontrac t type
negotiations. Answers A and B are incorrect because they are not ac curately reporting the time worked.
Answer C is incorrect bec ause you were not contracted to provide additional work you should not do it, nor
should you bill for it. Answers A, B, and C are violations of Member Standards of Conduct.

The Organizational Breakdown Structure (OBS)
A. cannot be used when you have a WBS
B. should be determined by the HR department
C. mymics the corporate organizational chart
D. should be determined by the finance department
The project's OBS is structured around the firm’s departments or functional areas, which also appear on the
corporate organizational chart. According to the PMBOK, the OBS is structured around an organizations
departments, untis, or teams with the project ac tivities or work packages listed under eac h department.

Which of the following is an output of verify sc ope?
A. WBS template
B. Rework
C. Accepted deliverables
D. SOW ac ceptance
A Choice A is incorrect bec ause WBS templates come from past projec ts or the PMO
B Choice B is incorrect bec ause rework does not come from verification
C Verify Sc ope results in one thing: ac cepted deliverable apart from change request and project document
update
D Choice D is incorrect bec ause SOW (statement of work) acceptance is not the best choice as it is already
considered while ac cepting the project

You projec t has the following EVM metrics: BAC =200; AC =120 ; EV =80 ; CPI =0.666. Assuming that current
variances are atypical, and that similar variances will not oc cur in the future, the estimate at completion (EAC) is:
A. 120
B. 160
C. 200
D. 240
EAC using remaining budget...This approach is most often used when current variances are seen as atypical
and the projec t management team's expec tations are that similar variances will not occur in the future. EAC
for atypical is AC + (BAC-EV) = 120 + (200-80) = 240

Which statement related to administrative closure and c ontrac t closure is correct?
A. Contrac t closure does not include administrative closure
B. Both contract closure and administrative closure require verification that all the work has been
completed correctly and satisfactorily
C. Early termination of a contrac t bec ause of budget overrun cannot be included as part of contrac t closure
proc edure
D. Administrative closure ac tivities are for the entire project and not for spec ific projec t phases
A Choice A is incorrect: Contrac t closure involves both product verification and administrative closure
B Product verification (all work is completed c orrectly and satisfactorily) is done as part of both administrative
closure and c ontrac t closure
C Choice C is incorrect. Early termination of a contrac t is a special case of contract closure
D Choice D is incorrect, two procedures (administrative closure and c ontrac t closure) are developed to
establish interac tions necessary to perform the closure activities across the entire project or for a project
phase

As you make approved c hanges to the original sc ope, you should:
A. Amend the SOW
B. Do a completely new WBS
C. Save the old versions
D. Issue change requests
The correc t answer is C. You should always save older versions of project document and make sure that eac h
version undergoes version c ontrol. The configuration management plan would define how you would handle
version control on the project. Choice B is wrong, you do not have to do a completely new WBS unless the
approved change ac tually changes the entire projec t. Choice D is also wrong, since the change request was
already approved, you wouldn't need to issue a change request either.

Your project has CPI of 0.81 and T CPI = 1.25. You know that your project is
A. Overbudget and ahead of sc hedule
B. Underbudget
C. Overbudget and behind sc hedule
D. Overbudget and TCPI is a projection of cost performance that must be achieved on the remaining
work
CPI 0.8 says every one dollar spent we are getting only 81 cents of completed work. To complete performance
index (TCPI) is a projection of cost performance that must be ac hieved on the remaining work to meet a
specified management goal such as the BAC or the EAC.

You are the project manager in a product manufacturing organization. As the project moves towards completion,
different material composition is considered for the deliverable. This is an example of which of the following?
A. Change request
B. Alternatives identification
C. Quality assurance
D. Verify Scope
Planning - Sc ope Management
Identifying alternatives is a technique used to generate different approac hes to execute and perform the work
of the projec t. The following techniques can be used such as brainstorming, lateral thinking, and pair wise
comparisons.

In a cost plus fixed fee contrac t, how can the fee change?
A. It cannot change.
B. It can change on project scope change
C. It can only be increased by 10% if there is an unexpected cost overrun.
D. It can be dec reased under certain circumstances.
Cost Plus Fixed Fee Contrac ts, the seller is reimbursed for all allowable cost for performing the contrac t work,
and receives a fixed fee payment calculated on initial estimated projec t costs. Fee amount do not change
unless the project Sc ope Changes.

You are currently developing a model that would help your organization in determining its level of maturity in
project management. Which of the following terms would be most appropriate to your ac tivity?
A. Work Breakdown Structure (WBS)
B. Project Management Information System (PMIS)
C. OPM3
D. Project Management Research
PMI has something c alled OPM3 (Organizational Project Management Maturity Model), which helps
organizations determine their level of maturity in project management. According to wikipedia, OPM3 is a
globally rec ognized best-prac tice standard for assessing and developing capabilities in Portfolio Management,
Program Management, and Project Management.

While you are quantifying risk for your project. Several of your experts are offsite, but wish to be included. How
can this be done?
A. Use Monte Carlo analysis
B. Apply the critical path method
C. Determine options for recommended c orrective ac tion
D. Apply the Delphi technique
A) Choice A is incorrect. Monte Carlo analysis is a simulation technique used through software. This will not
allow off site meetings
B) Choice B is incorrect. Critical path method is used to find minimum time required to complete the projec t
C) Choice C is incorrect. Determining options is alternative analysis to find corrective actions for deviation in
project
D) Since the Delphi technique means you are having private one-on-one meetings with the various experts
this is the correct answer. The Delphi technique is most commonly used to obtain expert opinions on technical
issues, the necessary project or product sc ope, or the risks.
Which of the following may specify proc edures for close contrac t?
A. Proc urement planning doc uments
B. Solicitation planning doc uments
C. Contract terms and conditions
D. Source selection methods
A) Choice A is incorrect. Proc urement planning deals with c oncluding a make or buy dec isions
B) Choice B is incorrect. Solicitation planning deals with creating a statement of work for the project.
C) Contrac t terms and c onditions may presc ribe contrac t close out procedures
D) Choice D is incorrect. Source selection methods are tools for evaluating proposals from different sellers

You are the project manager for a seller who has been selected to construct an industrial kitchen for a large food
service company. Before the contrac t negotiations, the buyer confides in you that design is not finalized, and
they want you to begin work with incomplete specifications. What type of contrac t should you ask for in
negotiations?
A. Fixed price
B. Cost plus incentive fee
C. Time and materials
D. Cost plus fixed fee
The correc t answer is choice C. The major clue here is that the scope of work is not completely defined and
they want you to begin work anyway. In that case, the project is at a higher risk, and a time and materials
contrac t shifts much of that risk back to the buyer.

Which input is not used to Identify Risks?
A. Project charter
B. Scope baseline
C. Project management plan
D. Project Doc uments
The project charter is not an input to Identify Risks. Risk management plan, ac tivity cost estimates, ac tivity
duration estimates, sc ope baseline, stakeholder register, cost management plan, sc hedule management plan,
quality management plan, project doc uments, enterprises environmental fac tors, organizational process assets
are inputs of the Identify Risks process.

A CRM software projec t has entered the closure phase on c ustomer ac ceptance of the software. On reviewing
project performance and deliverables, the project manager determines that the software delivered exceeds the
performance criteria as well as provides for functional features over and above the ones specified in the
requirements specifications approved by the customer. Which of the following is a true assessment of the project
performance?
A. The project has been very successful, as the customer has expressed delight.
B. The project has been unsuccessful, as it has provided for more than what was called for.
C. The project is unsuccessful as it could have been more productive than ac tual expenditure incurred.
D. The project is successful as specifications have been exceeded without any impact to cost and schedule
baselines.
The project is unsuccessful bec ause it has been gold plated.The situation desc ribed does not talk about cost
and schedule baseline performance.Customer delight is a goal but what should be ac hieved without gold
plating to the project.

Management has deemed the project’s completion should not cost more than $42 million. Because of the global
concerns, the final budget must be in U.S. dollars. This is an example of which of the following?
A. Internationalization
B. Budget constraint
C. Management constraint
D. Hard logic
This is an example of a budget constraint. The budget must not exceed $42 million.

You are the project manager for the Computer Hardware Inventory Project. You have a piece of equipment that
was purchased recently for $10,000 and is expec ted to last five years in production. At the end of the five years
the expec ted worth of the equipment is $1,000. Using straight-line deprecation, what is the amount that can be
written off eac h year?
A. Zero
B. $1,000
C. $1,800
D. $2,000
Planning - Cost Management
The straight-line depreciation takes the purchase value of the item, minus the salvage price of the item,
divided by the number of time periods. In this instance, it’d be $10,000 minus $1,000, or $9,000. The $9,000 is
divided by five years and equates to $1,800 per year. A, C, and D are all incorrect, as they do not reflect the
correct calculation.

Activity A is worth $200, is 100% complete, and actually cost $200. Activity B is worth $75, is 90% complete, and
ac tually cost $120 so far. Ac tivity C is worth $200, is 75% complete, and has cost $175 so far. The total budget
is $1000. What is the sc hedule variance for the ac tivities listed?
A. -$77.50
B. -$57.50
C. 0.84
D. 0.88
To calculate this, the earned value (EV) and planned value (PV) need to be calculated first. To do this,
multiply the percent complete of eac h ac tivity by its planned value (PV); that will provide the EV for eac h
ac tivity. Sum the earned value of eac h activity to determine the total earned value. Sum the planned value of
eac h ac tivity (to date) to determine the total planned value. The planned value of $475.00 is then subtrac ted
from the earned value of $417.50. This provides a SV of -$57.50. This means that the project is $57.50 behind
sc hedule.

Inputs to the Close Procurements proc ess include
A. Contrac ts
B. Contrac t updates
C. Proc urement audits
D. Procurement management plan
Proc urement management plan and procurement documentation are the two inputs to the Close Proc urements
proc ess.

When negotiating with functional managers for resources, you should consider personal charac teristics,
competency levels, and availability of the potential team members. Which of the following proc esses describes
negotiations ac curately?
A. A tool and technique of Acquire project Team
B. A tool and technique of Develop Human Resource Planning
C. A tool and technique of Develop Project Team
D. A tool and technique of Management Project Team
Negotiations are a tool and technique of the Acquire Project Team proc ess. The staffing management plan will
help you with the negotiations, bec ause you should c onsider things such as competency levels, availability,
and personal charac teristics when negotiating with functional managers for resources.

What are three tools used in the Perform Quality Control proc ess:
A. Benchmarking, Cost of Quality (COQ) and Cause and Effec t Diagram
B. Cost of Quality (COQ), Cause and Effect Diagram and Control Charts
C. Control Charts, Flowcharting and Process Analysis
D. Pareto Chart, Control Charts and Cause and Effect Diagram
Monitoring & Controlling - Quality Management
The tools and techniques of the Perform Quality Control process are cause and effect diagram, control charts,
flowcharting, histogram, Pareto chart, run chart, sc atter diagram, statistical sampling, inspec tion, and
approved change requests review.

Kimberly is creating an ac tivity cost estimate. Which of the following should not be included?
A. Information about the types of resources used in the ac tivities
B. Details on the assumptions used in the estimate
C. The order in which activities will be completed
D. Descriptions of resources used in the activities
The order in which the ac tivities are completed is not relevant to the Estimate Costs proc ess. All other answer
choices are relevant.

The inputs of the Report Performance process include all of the following except for which one?
A. Project management plan
B. Work performance information
C. Budget forecasts
D. Performance reports
Project management plan, work performance information, work performance measurements, budget forecasts,
and organizational process assets are the input to the Report Performance proc ess. Performance reports are
output of the Report Performance proc ess.

You are concerned about the performance of an individual on your team. You have noticed a rec ent increase in
defects from ac tivities this team member is responsible for. This is the first time that you have had any problems
with this particular team member. Which one of the following methods should you c hoose to give your feedbac k?
A. Informal verbal
B. Formal verbal
C. Informal written
D. Formal written
Executing - Communications Management
For the first notice, the best communication type to use is informal verbal. In this case you would meet with
the team member, fac e to fac e if possible, to disc uss the problem and try to find a solution. If the team
member continues to perform poorly, the second notice should be formal written.

Your project selection c ommittee is meeting later this week and is considering initiating one of two projec ts.
They’ve asked you to rec ommend the projec t that will benefit the organization the most. The information you’ve
gathered shows the initial investment for Project A is $295,000. Monthly cash inflows for the first year are
$17,000, and expec ted c ash inflows beginning in year 2 are $36,000 per quarter. Project B has an initial
investment of $332,000. Expec ted quarterly inflows for the first year are $44,000. Beginning in the second year,
inflows are expec ted to be $12,000 monthly. Which project should you recommend to the committee and why?
A. Project A, because it has a payback period of 20 months, which is shorter than Project B’s
payback period.
B. Project A, bec ause it has a payback period of 16 months, which is shorter than Project B’s payback period.
C. Project A, bec ause it has a lower initial investment than Project B.
D. Project A, bec ause it has a payback period of 16 months, while Projec t B has a payback period of 21
months.
The correc t answer is A. Project A’s payback period is 20 months. Year 1 inflows are $204,000. Year 2 inflows
for the first 8 months are $96,000, making the payback period 20 months. Project B’s paybac k period is 25
months. Year 1 inflows are $176,000. Year 2 inflows are 144,000, and an additional month at $12,000 makes
the payback period 25 months.
Choices B and D are wrong, bec ause payback period for A and B are 16 and 25 months respec tively. Choice C
is wrong, bec ause the question is asking about payback period and initial investment is not relevant when
using this type of dec ision making criteria.

Which of the following proc esses is involved in making needed information available to project stakeholders in a
timely manner?
A. Performance reporting
B. Manage stakeholder expec tations
C. Distribute Information
D. Communications planning
The correc t answer is C. Making needed information available to project stakeholders in a timely manner is
done in the Distribute Information proc ess.

The stakeholders on your project are having many disagreements over the technical approac h to complete the
project. Disputes are common in project planning and must always be expected. Which of the following doc uments
is concerned with trac king things that are preventing the project team members from meeting project goals?
A. Dispute register
B. Project plan
C. Risk register
D. Issues log
The correc t answer is choice D. An issue is any point or matter in question, in dispute, or over which there are
disagreements. The issues log documents concerns that keep the project team members from meeting project
goals.

Your project’s primary constraint is time. One of your key stakeholders,who is a major contributor on this project
is demanding the schedule be lengthened. He held his department picnic last weekend, and three of her staff
members came down with H1N1 virus. The team members he’s assigned to your project (who didn’t contrac t the
virus) must now do double duty and help support the department functions until their co-workers get well. Your
customer will not agree to a sc hedule change. Which of the following statements is false given the fac ts in this
question?
A. The project manager has the weakest amount of power and authority in this type of organization.
B. The project manager should try to resolve the problem such that it doesn’t affect the project sc hedule.
C. This company’s organizational structure is functional, since the department manager is responsible for
assigning resources to the project.
D. The project manager should work with the stakeholder to resolve the problem and negotiate with
the customer to change the schedule.
When problems arise on a project, they should be resolved in favor of the customer whenever possible. This
organization is a functional organization, as the department manager is responsible for assigning resources,
which means the project manager has little authority or power.

You have received new information about future resource costs that might cause you to exceed your control
ac count budget. Your first ac tion is to
A. Report this in a variance analysis
B. Provide a revised EAC in the next sc heduled EAC report
C. Try not to exceed the control ac count BAC
D. Analyze the new information and the remaining work
Remember that analysis is always done before taking any further action.

What is the objec tive of a procurement audit?
A. Review for compliance to proc urement norms of the organization
B. Formal ac ceptance of product
C. Review for compliance to statutory laws
D. Identify lessons learned, to be shared on other projects/ procurement items
Monitoring & Controlling - Procurement Management
The objective of a proc urement audit is to identify what worked and what didn't, to serve as experience on
other projects or other proc urement items in the same project.

Which of the following is true for a WBS?
A. Each descending level represents an increase in detail of work
B. Each ascending level represents an increase in detail of work
C. Level of detail does not change with position of work on the WBS
D. Each desc ending level represents a decrease in detail of work
The WBS is organized with increasing detail of work with each descending level in the structure. All other
statements do not hold true for WBS.

If you think that the costs you have incurred up to now are an indicator of what will happen for the rest of the
project your formula for finding the EAC is:
A. EAC = BAC / CPI
B. EAC = AC + Bottom-up ETC
C. EAC = AC + BAC - EV
D. EAC = (BAC - EV) / (BAC - AC)
If past results are expec ted to continue the correc t EAC formula is EAC = BAC / CPI.

Leading, communicating, and problem solving are examples of ________ management skills.
A. Project
B. General
C. Senior
D. HR
These are general skills that managers of any type will need to use in order to perform successfully for the
organization.

Sarah feels that buying lunch for her team every week is a great way to keep them motivated. What type of cost
is this?
A. Direct
B. Fixed
C. Variable
D. Indirect
Executing - Cost Management
This is an indirect cost. Indirec t cost are costs that are not directly related to the project or projec t
deliverables, but can provide tangible benefits to the projec t. In this case Sarah’s team is more motivated and
does better work.

The WBS element 1.7.A is at what level in the WBS
A. two
B. three
C. Four
D. can not be determined
Level 1: 1
Level 2: 7
Level 3 : A

Which of the following is not an input of team development?
A. Reward and recognition systems
B. Staffing Management Plan
C. Performance Reports
D. External feedback
Reward and recognition systems is a tools and technique of the Develop Project Team process.

Assume the rest of the job will be done as per budget. Which formula will give the most correc t estimate of the
Estimate at Completion ( EAC)?
A. BAC/CPI
B. (BAC-EV) + AC
C. ETC/ (CPI * SPI) + AC
D. (BAC-EV)/CPI
The question says rest of work to be done as per budget, all we need to do is add the remaining work (BAC-
EV) and add funds spent i.e AC.

Online, classroom, computer-based, and on-the-job are all examples of types of ________
A. Ideas
B. Training
C. Tac tics
D. Communication
Choice B is the correct answer. Online, classroom, computer-based, and on-the-job are types of training.

A project manager in Detroit is having difficulty getting the engineers in his company's Detroit office to complete
design documents for his project. He has sent numerous requests to the VP of Engineering (also in Detroit) for
assistance in getting the design documents, but so far his efforts have been unsuccessful. What kind of
organization does this projec t manager work in?
A. Strong Matrix
B. Hierarchal
C. Functional
D. Projectized
The clue to this question is the project manager's low authority, which implies a functional organization. The
PM must appeal to the head of the engineering department rather than making his request directly to the team
members. In both a strong matrix and projectized organization the project manager would have sufficient
authority to directly manage the engineers.

Proc urement documentation is an input to the Proc urement Closure process. Procurement documentation might
include all of the following except for which one?
A. The buyer’s invitation for bid (IFB)
B. Invitation for negotiations
C. Financial documents
D. Procurement audit documents
Proc urement audits are a tool and tec hnique of the Close Procurements process and are not an input.
Proc urement documentation might include all of the other options shown and include the buyer’s invitation for
bid (IFB), invitation for negotiations, request for information (RFI), request for quotation (RFQ), request for
proposal (RFP), and seller’s responses.

Who is responsible for organizing training of the new staff on project?
A. Human resources department
B. Project manager
C. Training department
D. Functional manager
The project manager is responsible for arranging any project specific training required to address the project
needs.

Which of the following forms the basis for making required information available to projec t stakeholders?
A. Communications management plan
B. Work results
C. Risk management plan
D. Scope management plan
A) The communications management plan forms the basis for methods, source, content, structure, timing and
distribution list for dissemination of necessary information
B) Choice B is incorrect bec ause work results are part of the reports sent to the customer and this will not
form as the base for communication
C) Choice C is incorrect bec ause risk management plan does not describe the essentials that needs to be
submitted to the customer, it only desc ribes various risks involved in a project including mitigation
D) Choice D is incorrect. Scope management plan desc ribes the work to be performed.
Question: 100 ( Incorrec t - Skipped )

What is "Independent estimate" applied as a criterion for evaluating proposals?
A. Check proposed pricing by procuring organization
B. Project budget for the project statement of work
C. Range of estimates as derived by rough order magnitude techniques
D. Average of prices received from prospective sellers.
Independent estimates derived by the buyer are often referred to as "should c ost" estimate for the
proc urement. This is done to ensure correct pricing levels on the proc urement.

Your project has the following EVM metrics: BAC =200; AC =120; EV =80; CPI =0.666. Assuming that current
variances are typical of future variances, the estimate at completion (EAC) is:
A. 240
B. 260
C. 300
D. 320
The approac h used when c urrent variances are seen as typical of future variances is to use the fomula
BAC/CPI. In other words, the past performance (CPI) will continue for the remained of the project.
EAC = BAC/CPI = 200/0.666 = 300

Control charts are used for the:
A. monitoring and subsequent evaluation of process variations
B. determination of the mean and acceptable range of the variance
C. controlling project cost
D. controlling project delays
Control charts are used for the monitoring and controlling and subsequent evaluation of proc ess variations

A Time Phased Budget means
A. Dividing the projec t budget by the project duration
B. Reporting c osts week by week, or month by month
C. Averaging the budget over a fixed time
D. Determining the budget over time based on the resources needed to complete the work on
schedule
Determining the budget over time based on the resources needed to complete the work on schedule is the
definition of a time phased budget.

Which of the following is relevant for project plan development?
A. Stakeholder skills and knowledge
B. Change control system
C. Configuration management
D. Project selection methods
Choice A is the correct answer.
Project plan development is the creation of the final project plan for approval by the management of the
performing organization. This is based on outputs from core planning processes.
An understanding of the stakeholder knowledge and skills is essential for appropriate application in creating the
project plan.
Change control system and c onfiguration management are methods used for integrated change control.
Project selec tion methods are applied in selecting a project and hence are tools used for project initiation.

Costs that are expec ted to occur but the time when they will oc cur is not known are called?
A. Indirect
B. Tac tical
C. Direct
D. Known unknowns
You expec t that there is a high probability that a cost will oc cur but you are not sure when it will happen.

Company A hires Company B to work on a project. Company B then subcontrac ts part of the projec t to Company
C. One day the projec t manager from Company A sees someone from Company C doing work he/she feels is
wrong. If the projec t manager from Company A tells the person from Company C to stop that work, what is the
person from Company C required by law to do?
A. Stop work immediately
B. Ask him to sign a change order requesting the stop
C. Proc ess the earned value
D. Continue work and ignore the person
Continue work and ignore the person. Since that work is given by company B to Company C. Answer A, B and
C is not best choice.

The projec t team is executing the work pac kages of your project when a serious disagreement regarding the
interpretation of the sc ope is brought to your attention by your most trusted team member. Your project sponsor
also has a different opinion. How should this dispute be resolved?
A. The dispute should be resolved in favor of the project sponsor.
B. The project team should have a meeting to dec ide on the proper resolution.
C. The dispute should be resolved in favor of the customer.
D. The project manager should consult the projec t plan for guidance.
Executing - Scope Management
According to the PMBOK, disagreements should always be resolved in favor of the customer.

Your company just won a major new project. It will begin in three months and is valued at $72,600,000. You are
the project manager for an existing project. What is the FIRST thing you should do once you hear of the new
project?
A. Ask management how the new project will use resources
B. Resource level your project
C. Crash your project
D. Ask management how the new project will affect your project
As you work on a project you need to constantly reevaluate the project objectives and how the projec t
relates to other concurrent projects. Is your project still in line with corporate objec tives? If the other project
will impac t yours, you need to be proactive and work on options now.

You are finalizing the monthly project status report due now to your manager when you disc over that several
project team members are not reporting ac tual hours spent on project tasks. Consequently, this results in skewed
project management plan statistics. What is the MOST appropriate action to be taken?
A. Disc uss the impacts of these ac tions with team member(s)
B. Report team member ac tions to functional manager
C. Continue reporting information as presented to you
D. Provide accurate and truthful representations in all project reports
Provide ac curate and truthful representations in all project reports. Answer A, B and C are not correct.

Project performance appraisals focus on:
A. how an individual team member is performing on the project
B. an evaluation of the project team‘s effectiveness
C. a team building effort
D. reducing the staff turnover rate
Answer B, C and D list aspec ts of team performance assessments. Only choice A is correct. Project
performance appraisals deal with how eac h team member is performing work, rather than how well the team is
working together.
You are in the executing phase of a large software implementation and one of your lead analysts has noticed that
the product could be vastly improved by making a small change to a couple of the configuration items. The
analyst thinks that this would have a minimal impact to the time-line but would improve the client's experience of
this product and would also improve configuration efficiency for the remainder of the project. She is about to tell
her junior analyst to make the change but has approached you to confirm that this is ok. What should you do in
this situation?
A. Since it is a simple change that would result in greater client satisfac tion and efficiencies for your project
you should allow her to make the change.
B. You should first perform a detailed impact analysis and then submit a Change Order to the Change
Control Board for authorization to make the change.
C. This is beyond the sc ope of the projec t and would be considered Gold Plating. This change should not be
made.
D. This is beyond the sc ope of the projec t and would be considered Scope Creep. This change should not be
made.
Any change that is not in requirements should have an impac t analysis performed first, even if the change is
small it could have an impact to other proc esses. Since the change is not in sc ope then it should be
authorized by the change control board who will consider the impac t to cost and time. C and D are incorrect
since you c an make the change if the the Change Control Board approves it.

You have been working on a 1-year project for nine months. The project is ahead of sc hedule when one of the
functional managers tells you the resources committed to the project are no longer available. After chec king
further, you discover the company has another project that just started and is using the resources committed to
your projec t. You believe the new project is not critical, but the project manager is the daughter of a board
member. What is the BEST course of ac tion in this situation?
A. Determine when resources will bec ome available
B. Ask upper management to formally prioritize the projects
C. Use the reserve to hire contrac tors to complete the work
D. Negotiate a new schedule with the other project manager
Negotiate a new schedule with the other projec t manager. According to the PBMOK guide you should always
try to resolve conflicts internally and should use negotiating skills to try to come to a mutually beneficial
agreement.

On your project, the lessons learned document is created by which of the following?
A. The customers
B. The project sponsor
C. The project team
D. The stakeholders
Choice A is incorrect bec ause a customer might be involved in the process of documenting the lessons
learned, however he does not create it.
Choice B is incorrec t. The project sponsor is an active member in completing the lessons learned doc ument. It
is the duty of the project team to create the document.
The project team contributes to the lessons learned document. The project manager also contributes, if not
leads, the creation, but this is not a choice in the question. The lessons learned team includes the project
manager, stakeholders, customers, projec t sponsor, project team, etc.
Choice D is incorrect as not all stakeholders will help to create the lessons learned doc ument.

Which of the following must be present to have a contrac t?
A. Detailed scope of work
B. Acceptance
C. Address of the seller
D. Company signatures
Contrac t having all details should be ac cepted by seller and buyer parties.

Which knowledge area includes the creation of the projec t charter?
A. Project Scope Management
B. Project Cost Management
C. Project Integration Management
D. Project Communications Management
Project Integration Management, which focuses on the coordination of all components of project management,
includes the development of the projec t charter.

Which one of the following must exist in order to complete a definitive cost estimate?
A. Proc urement audits
B. Scope baseline
C. Project team
D. Expert judgment
The sc ope baseline is needed in order to create a definitive cost estimate. The sc ope baseline includes the
Scope statement, WBS and WBS dictionary. Choices A, C, and D are all incorrect, as these items are not
required to complete a definitive estimate.

You are the project manager and found that a system engineer on your project is over alloc ated. Which of the
following statements is true?
A. You should use resource requirements updates to determine availability and smooth out resource
overalloc ation.
B. You should use crashing to resource-level the critical path tasks.
C. You should use resource leveling to smooth out resource assignments.
D. You should use fast trac king to resource-level the critical path tasks.
Resource leveling attempts to smooth out resource assignments by splitting tasks, assigning under allocated
team members to more tasks, or delaying the start of tasks to match team members’ availability.

You are looking at ways of reducing costs on your project before they begin to spiral out of control. Which costs
will you have the most control over when analyzing how to reduce your costs?
A. Costs incurred to bring the projec t to its current state
B. Leasing c osts for equipment essential for this projec t.
C. Rental cost of the office building.
D. Consulting costs to bring in external consultants to develop the product.
This is a variable cost to the project and the project manager can decide to bring in less Consultants or
reduce the hours they work. Costs incurred to bring the project to its current state is a sunk cost and leasing
cost is a fixed c ost. Neither should be considered.

Which of the following is not required to be done for closing a project?
A. Making final payments
B. Updating project archives
C. Updating staffing management plan
D. Obtaining c ustomer sign-off
Contrac t close out ac tivities include product verification, financial closure (making final payments and updating
cost records), conducting lessons learned, final project performance reporting, and archiving projec t records
for future reference.
Staffing management plan deals with stakeholder identification and management with respec t to the available
skills, roles, and responsibilities. Staffing management plan and updates to the same are parts of project
execution, and not relevant for projec t closure.

A friend of yours, a fellow PMP, has ac cepted a position with another company. He has told you he is going to
make electronic copies of the project management templates your organization has developed because it will make
him more efficient. Which of the following should you do?
A. You and your friend disc uss the situation and he convinces you that since he helped design and create the
templates, there should be no problem with him taking copies to his new company.
B. You know this is an ethics violation according to the PMI Code of Ethics and Professional Conduct . You
report your friend so that a formal investigation c an take plac e.
C. You tell your friend he should c heck with his manager before making the copies of the templates. If
approval is given by his manager, then it should be ac cepable since his manager has granted official
approval of the ac t.
D. You tell your friend you're concerned because the templates belong to the organization and not
him personally. You ask him not to make copies and explain that you'll have to report this as an
ethics violation to PMI and to his director if he should do so.
Choice D is correct. The best answer in this sc enario is to tell your friend the templates are intellec tual
property that belong to the organization, not to him personally, and to warn him that if he copies the
templates, she will have committed an ethics violation and you'll be obligated to report him.
Choice C may seem correct, but you were not told that his manager has the authority to release the
documents, nor were you told what the company policy is in such situations. Thus choice D is the better
answer.

Your company has a large client that has requested a spec ial component be created for one of their test engines.
Your organization agrees, creates a standard contrac t with the customer, and your manager assigns you to
manage this project. The project was launched because of which one of the following?
A. A customer request
B. A change in the technology your customer is creating
C. A legal requirement (contrac tual)
D. An organizational need
This project was launched bec ause the customer requested the new component.
B is incorrect bec ause the projec t is not a response to a change in technology, but a customer request. C, a
legal requirement, is not correct bec ause this ac tually refers to a law or mandated regulation that has been
created. D, an organizational need, typically refers to a project to behoove the performance of the
organization.

In order to compute the probability of completing a project on time, the standard deviations(SD) of eac h ac tivity
must be known. These can be calculated using the following expression:
A. SD = (p - o)/6
B. SD = p - o /3
C. SD = (o + p) /6
D. SD = (p - o)/12
SD = (Pessimistic - Optimistic)/6

Who should c ontribute to the development of the project Management plan?
A. Project manager
B. Entire project team including project manager
C. Senior management
D. Just the planning department
Project management plan is done by project team and Project manager.

Abdul Suleiman is working in a Middle Eastern country for an U.S company and knows that bribes are a legitimate
custom in doing business. He also knows that U.S. law prohibits bribery. He is attempting to win a contrac t to
construct a sewage treatment fac ility and is expected to pay a $15,000 "finder's fee" to the local utility official.
What should Iman do?
A. Provide the fee. PMI approves of obeying loc al customs.
B. Provide the finder's fee. Because it is a fee, there is no issue.
C. Do not provide the fee and risk losing the business. It is illegal in the U.S., and Suleiman works for
a U.S. firm.
D. Provide the fee outside of his business capac ity.
Answer A is incorrect bec ause, although PMI approves of obeying loc al customs, it does not approve of
breaking the law. Because Suleiman works for a U.S. company, he is subject to U.S. laws. Answers B and D
are incorrec t bec ause they are trying to use other ways to justify the bribe.

Project managers are not responsible for which one of the following in most organizations?
A. Identifying the project requirements
B. Selecting the projects to be initiated
C. Balancing demands for time, cost, scope, and quality
D. Establishing c lear and ac hievable projec t objec tives
Project managers typically do not select which projects are to be initiated. The projec t selection committee,
customers, or projec t sponsors are typically responsible for this.
A, C, and D are all incorrect choices bec ause the project manager is responsible for these activities.

You have been asked for assistance with a contract negotiation. One of the stakeholders has overheard the
phrase “Fait Ac compli” and does not understand what that means. What do you tell them?
A. This means that the person negotiating the contrac t has limited authority
B. This means that the contract is non-negotiable.
C. This is a term that refers to an Act of God
D. This is a term that defines who owns any intellectual property
Fait Accompli means non-negotiable. It means that part of the contract cannot be changed.

You are working on a project that was proc eeding well untill now. A major defect occurs and requires a correc tive
ac tion. The corrective ac tion is canceled, and you c ontinue to produce the product with the defect. As the
project manager, you know that a change has oc curred to the project sc ope. Which of the following statements
is true?
A. Project sc ope changes do not require change control board approval.
B. Performance measurement baselines may be affected by scope changes.
C. Project sc ope change uses sampling to determine if change has occurred.
D. Project sc ope change uses workarounds to correc t unexpected problems with sc ope change.
A project sc ope change affects the performance measurement baselines, which may include sc hedule
baselines and c ost baselines.

A project manager is constantly plagued by frustrations in her projects. What is the best project team
environment to work in?
A. A team in the same room that reports directly and only to the project manager
B. A team that meets frequently fac e to fac e, but has other functional duties
C. A loosely connected group of functional experts who help direct the project
D. A team that resides offsite
Co-location and a projectized environment is the best situation for a project team.

Of the following, which would NOT be an output of Perform Quality Control?
A. Change requests
B. Project document update
C. Quality management plan
D. Validated changes and validated deliverables
The output of the Perform Quality Control process are quality control measurements, validated c hanges,
validated deliverables, organizational proc ess assets updates, change requests, project management plan
updates, and projec t doc ument updates. The quality management plan is an output of the Plan Quality
proc ess.

Which term means continuous improvement?
A. Ishikawa
B. Sigma
C. Pareto
D. Kaizen
Kaizen is the Japanese word for continuous improvement.

What amongst the following would be the appropriate stage for establishing resource requirements on the projec t?
A. After schedule development is completed
B. After creating project network diagram
C. After scope statement
D. Before ac tivity definition
Resource requirements are required to be established while estimating ac tivity duration, hence after creating
the projec t network diagram. Sc hedule development can be completed only after establishing resource
requirements. Resource requirements do not have any impact on scope statement and activity definition.

You are in the proc ess of contrac t closure. Now, your foc us is to chec k if all the work is completed c orrectly and
as per the needs of the customer. Which of the following ac tivities are you performing?
A. Financial Closure
B. Lessons Learned
C. Product Verification
D. Stakeholder Management
Choice A is incorrect. Financial Closure involves making final payment and c ompleting the cost records.
Choice B and D are incorrec t. Lessons learned and Stakeholder Management is not part of the contrac t closure
proc ess.
Choice C is correct. Product verification is an ac tivity for checking if all of the work is completed c orrectly as
per the needs of the customer.

You recently uncovered a fellow projec t manager, who is PMP certified and a close friend, is not disc losing all of
the costs involved with an upcoming project. Instead, this person is constructing a WBS that does not include all
the ac tivities nec essary to get the projec t done. You should:
A. Ignore it bec ause this PMP is a friend of yours
B. Report the project manager to the PMI for unethical behavior
C. Report this ac tivity to the stakeholders
D. Talk to this PMP about the WBS to see if you can rework it to reflect actual costs on the project
Professional & Social Responsibility - Scope Management
The first thing you should always do is try to resolve issues like this among yourselves. By working with this
PMP, you may be able to avoid a serious conflict. If he or she refuses to change the WBS, you have a
responsibility to go to stakeholders and voice your concerns. Based on the fac ts in the questions, you cannot
be sure it is a breac h of PMI ethics.

The outputs from Control Sc hedule include all of the following except:
A. Project management plan updates
B. Schedule revisions
C. Change requests
D. Work performance measurements
The outputs from the Control Schedule process are work performance measurements, organizational proc ess
assets updates, change requests, project management plan updates, and project document updates.
Scehdule revisions are not an output from the Control Schedule proc ess.

Which of the following will show the number of resources used eac h month?
A. Bar Chart
B. Resource Histogram
C. Responsibility Matrix
D. Pareto Chart
Resource Histogram is a bar chart that depicts the resource usage. This would provide the number of
resources used eac h month.

An output that arises as a result of using a tool which appears after completing plan risk response:
A. Residual risks
B. Risks identified
C. Prioritized list of risks
D. Impacts identified
A) Answer A is correc t, on risk response plan we will find for residual risk in project
B) Answer B is incorrect Risks are identified during risk identification and risk monitoring and c ontrol
C) Answer C is incorrec t. Prioritized risks are doc umented during qualitative and quantitative risk analysis
D) Answer D is incorrec t as Impac ts are generally determined during quantitative risk analysis

Which of the following are outputs of Control Schedule?
A. Change requests, work performance measurements, project documents updates
B. Change requests, work performance information, project doc uments updates
C. Project management plan, change requests, work performance measurements, project documents
D. Change requests, schedule compression, and project documents updates
The outputs of the Control Sc hedule proc ess are work performance measurements, organizational process
asset updates, change requests, project management plan updates, and project document updates.
Which one of the following is an example of a project communication constraint?
A. Ad-hoc conversations
B. Demands for formal reports
C. Stakeholder management
D. Team members in different geographical locales
A) Choice A is incorrect bec ause Ad-hoc conversations are not a constraint to project communication. This
can be a part of the informal communication.
B) Choice A is incorrect bec ause formal reports are essential for a project manager to submit reports.
C) Choice C is incorrect bec ause stakeholder management is not a constraint, rather it is the most important
ac tion of a project manager in project communication management.
D) Team members that are not loc ated physically close together can be a communications constraint since it
is tougher to communicate when distance between team members exist. Remember a constraint is anything
that limits the project team's options on a project.

Contrac ts are administered by the ________.
A. Buyer
B. Seller
C. Sponsor
D. Buyer and seller
A) Choice A is incorrect as buyer alone cannot administer the project without the participation from the seller
B) Choice B is incorrect as seller may not administrate the contrac t without the involvement of buyer’s
presence.
C) Choice C is incorrect as Sponsor will not involve in micro managing projects and does not administer
contrac ts.
D) Both the buyer and seller should administer the contrac t to make certain that the obligations in the
contrac t are being met

Which of the following is not a part of administrative closure?
A. Collec ting project records
B. Final performance report
C. Lessons learned
D. Verify Scope
Verify Scope is a part of project scope control and is carried out throughout the controlling phase of the
project management life cycle. Product verification is carried out during project closure. Publishing the final
performance report, collecting project rec ords, and c oncluding lessons learned are all required to be done at
administrative closure.

You are a project manager and are currently assessing the probability and c onsequences of identified risks to the
project objectives, assigning a risk sc ore to eac h risk, and c reating a list of prioritized risks. Which proc ess are
you performing?
A. Quantitative Risk Analysis
B. Qualitative Risk Analysis
C. Identification of Risks
D. Plan Risk Management
The purpose of Perform Qualitative Risk Analysis is to determine what impac t the identified risk events will
have on the projec t and the probability they’ll oc cur. It also puts risks in priority order ac cording to their
effects on the project objectives and assigns a risk sc ore for the project.

Which of the following is not an evaluation system technique?
A. Independent estimates
B. Screening system
C. Weighing system
D. Bidders' conferences
A) Choice A is incorrect bec ause independent estimates technique is a source selection technique and this is
meant for selecting the sellers
B) Choice B is incorrect as sc reening system is a method of proposal evaluation technique
C) Choice C is incorrect bec ause weighing system is part of proposal evaluation technique and source
selection method
D) Bidders' c onferences are meetings with prospective sellers before the completion of proposals for a clear
and c ommon understanding of the procurement requirements

Jon is the project manager of an office relocation project and is fed up with the several conflicts on his projec t.
He tells the team: “Shut-up! I'm the boss. We are doing things my way from now on. If you don't like it, there's
the door!" Which type of conflict resolution tec hnique is he using?
A. Forcing
B. Problem-solving
C. Withdrawing
D. Compromising
Forcing is a win-lose situation in which one person forces thier decision on another.

Which of the following is not involved in quality control?
A. Quality audit
B. Statistical sampling
C. Trend analysis
D. Inspec tion
A) 'Quality audit' is a structured review of proc esses, to identify lessons learnt that could improve project
performance of the current project or of other projec ts, within the performing organization
B) Choice B is incorrect bec ause 'Statistical sampling' is performed on work results and therefore, is a part of
project quality control.
C) Trend analysis is a tool used in quality control proc ess and
D) inspection'

What does the center line on a control chart depict?
A. Upper Control Limit
B. Lower Control Limit
C. Mean of the process
D. Standard deviation of the proc ess
A) The Upper Control Limit is the upper limit line. Thus, choice B is incorrect.
B) The Lower Control Limit is the lower limit line. Thus, choice B is incorrect.
C) The center line depicts the average (also called mean) of the process measurement.
D) The standard deviation is not depicted on the control chart. Thus, choice D is incorrect.

A project manager is working in Costa Rica where it is customary to pay the police for private protection services.
The projec t manager knows that in his home country this would be considered a bribe. What is the BEST way for
the project manager to proc eed?
A. Do not pay the police for private protection services, because that would be a bribe
B. Pay the police for private protection services, because it is customary in the country they are
operating in
C. Consult the Cost Management Plan about payment
D. Ask the supervisor for guidance
Some questions on the exam might ask you about how to operate in another country. In this case, the
question is about whether or not something is a bribe. Clearly, if it’s a bribe, you c an’t pay it. But is it? If a
payment to a government official (or anyone else) is customary, then it’s not a bribe. You should go ahead
and pay the police - as long as it’s ac ceptable and legal in that country.
To contrast a clear c ase of a bribe would be if you paid the police to look the other way while you did
something illegal. However, that is not the case in this example.
Also remember that as a project manager you should not go ask your supervisor for permission for every little
thing, thus choice D is incorrect.

Inputs to Plan Quality include
A. Quality policy, historical information, sc ope statement, product description standards and regulations
B. Scope baseline, stakeholder register, cost performance baseline, schedule baseline, risk register,
enterprise environmental factor, organizational process assets
C. Quality policy, quality management plan, operational definitions, product description standards and
regulations
D. Quality policy, checklists, quality management plan, product description standards and regulations
The input to the Plan Quality proc ess are sc ope baseline, stakeholder register, cost performance baseline,
sc hedule baseline, risk register, enterprise environmental fac tor, and organizational proc ess assets.

In your projec t, you have identified disaster situations (e.g. floods, earthquakes etc) as potential risks. When
disc ussing with your projec t sponsor, she mentioned that at the project level, no steps can be taken to deal with
such risk and suggested c reating a contingency reserve (5% of the projec t budget) which could be used in c ase
of disaster situations. This is an example of:
A. Risk Mitigation
B. Risk Acceptance
C. Risk Avoidance
D. Bad policy dec ision
Acceptance: A strategy that is adopted because it is seldom possible to eliminate all risk from a projec t. This
strategy indicates that the project team has dec ided not to change the project management plan to deal with
a risk, or is unable to identify any other suitable response strategy... The most common active ac ceptance
strategy is to establish a contingency reserve, including amounts of time, money, or resources to handle
known-or even sometimes potential, unknown-threats or opportunities.

You are managing a large software project when the need for a new series of database tables is disc overed. The
need was previously unplanned, and your organization's staff is 100% utilized, so you decide to go outside the
company to proc ure this piece of work. When you meet with prospective sellers, you realize that the sc ope of
work is not completely defined, but everyone agrees that the projec t is relatively small, and your need is urgent.
Which type of contrac t makes the MOST sense?
A. Fixed price
B. Time and materials
C. Open ended
D. Cost plus incentive fee
The correc t answer is choice B, Time and Materials are typically used in this circumstance.
Choice 'A' is incorrec t bec ause the sc ope is not defined enough to establish a fair fixed price. Choice 'C' is a
made- up type of contrac t. Choice 'D' would not make sense in this case since the seller's costs are not
abundantly clear, and this type of contract would c reate too much risk.

You have been c hosen as the project manager for a new satelite program in development by Ground Control Inc.
You have just started planning for the project. Which of the following should you NOT take into consideration
during planning?
A. The rumor about the company going bankrupt
B. Past project information
C. Company resources
D. Company policies
Executing - Framework
Past projec t information, company resources, and c ompany policies should be taken into consideration. Rumors
about the company should not be considered. As a project manager you should make decisions based on
fac ts, not rumors.

Which of the following is the project manager responsible for?
A. Setting c ompany policies and procedures
B. Predicting the product life cycle
C. An analysis of available resources
D. Setting the marketing budget
Executing - Framework
The correc t answer is C. The project manager is responsible for determining the available and required
resources for the project.

Which of the following is a tool and technique of the Close Procurements proc ess?
A. Procurement audits
B. Proc urement management plan
C. Proc urement statement of work
D. Proc urement documentation
Proc urement audits, negotiated settlements and record management system are the three tools and
techniques of the Close Procurements proc ess. Procurement statement of work is an output of the Plan
Proc urement proc ess. Proc urement management plan and procurement documentation are inputs to the Close
Proc urements proc ess, not tools and tec hniques.

One of your projects has signed a fixed price plus incentive contrac t. The Fixed price plus incentive fee FPI
contrac t has a target cost of $130,000, a target profit of $15,000, a target price of $145,000, a ceiling price of
$159,000 and a share ratio of 80/20. The ac tual cost of the project was $150,000
Based on the scenario, how much profit does the seller make?
A. $5,000
B. $15,000
C. $0
D. $9,000
The planned amount to be paid to the contrac tor is targeted cost plus targeted profit. Which means $130,000
plus $15,000 = $145,000
However, ac tual cost incurred was $150,000 instead of planned cost of $130,000.
Hence in this case, Actual amount to be paid = Actual Cost plus targeted profit minus 20% share of cost
increase.
= $150,000 + $15,000 - 20% of $20,000 = $161,000.
Since maximum amount to be paid c annot exceed $159,000 hence $159,000 to be paid.
Hence profit made by contrac tor = Amount paid minus cost incurred = $159,000 - $150,000 = $9000

During every projec t team meeting, the project manager assigns new activities to team members. The length of
the meeting has increased because there are many different activities to assign. This could be happening for all
the following reasons. EXCEPT?
A. Lack of WBS
B. Lack of a responsibility assignment matrix
C. Lack of resource leveling
D. Lack of team involvement in project planning
Answer choices A, B, and D all include elements that signify poor planning and can be the cause of the
problem desc ribes in this questions. Resource leveling refers to smoothing out resources to optimize resource
utilization on a project, which is different from the assignment proc ess that is described in this questions.

A technological advance, legal requirement or social need refer to:
A. Issues that need to be managed in the project plan
B. Environmental fac tors that usually have detrimental effect on the project
C. Risks that have to be managed by the projec t manager
D. Stimuli that arouses the need for a new project which may be authorized by an organization
A Answer A is incorrect as issues to manage a projec t plan will not be a reason for project creation
B Answer B is not the best answers as Environmental Fac tors will not be a stimuli for a project, it can affect
the projec t positively or negatively.
C Answer C states about risk, and risk will not be a stimuli for a project on all the cases
D Projects are usually chartered and authorized as a result of one or more of the following: a market demand,
a business need, a customer request, a technological advance, a legal requirement, or a social need.

Amongst the conflict resolution tec hniques (Confrontation, Compromise, Withdrawal, Forcing and Smoothing),
which conflict resolution technique is Most Preferred or Least Preferred by projec t managers, respec tively?
A. Compromise, Withdrawal
B. Confrontation, Withdrawal
C. Confrontation, Forcing
D. Smoothing, Withdrawal
The most preferred Conflict Resolution T echniques by project managers (in desc ending order of importance)
are as follows:
1. Confrontation
2. Compromise
3. Smoothing
4. Forcing
5. Withdrawal

You are in the proc ess of identifying new risks analyzing existing risks to ensure they are being trac ked and
appropriate risk responses are being executed. Under which management proc ess does this task fall under?
A. Plan Risk Responses
B. Identify Risks
C. Perform Quantitative Risk Analysis
D. Monitor and Control Risks
Monitor and Control Risks

During which processes is a make or buy dec ision made by the project management team?
A. Collec t requirement
B. Scope definition
C. Identify Risk
D. Creation of projec t charter
A Choice A is incorrect bec ause collect requirement is proc ess where details about project is captured from
stakeholders
B The project team must dec ide which project needs can be best met by procuring products or services from
outside the performing organization during the sc ope definition effort., i.e. alternative identification
C Choice C is incorrect, risk identification process where will doc ument know risks, i.e Risk register
D Choice D is incorrect, Charter is created at very beginning of project.

The initial cost of your project is $25,000, which will save the company $6,000 per year for the next 4 years.
Using the above data, if your company wants a 12% ROI, what is the NPV of the project?
A. -$1,000
B. -$6,777
C. +$1,758
D. +$6,722
The formula for NPV in this case is NPV = -Investment + Inflows/(1+r)^n. So in our case it is -25,000 +
6,000/1.12 + 6,000/(1.12)^2 + 6,000/(1.12)^3 + 6,000/(1.12)^4 = -$6,777.

A Seller’s Invoice arrived four months after his product was delivered and put to use on the project. This results in
A. An unavoidable cost Variance
B. Project cash flow that changes the time phased budget
C. Little concern since estimated actuals can be used until the invoice is paid
D. An unavoidable sc hedule variance
Estimated ac tuals can be used until the invoice, payment, and accounting catches up and the true costs are
reported to the projec t.

You are performing structured independant reviews to ensure compliance with the project's quality policies and
proc edures. Which of the following is true about the proc ess this describes?
A. It is the proc ess of monitoring and recording results of exec uting the quality activities to assess
performance.
B. It identifies causes of poor proc ess or product quality and recommends ac tion to eliminate them.
C. It is performed throughout the project.
D. It ensures appropriate quality standards and operational definitions are used.
This question is describing quality audits, which is a tool and technique of the Perform Quality Assurance
proc ess. Answer choices A, B, and C are all wrong because they all describe features of the Perform Quality
Control Proc ess. Choice D describes the Quality Assurance process.

What is the process of evaluating the overall project performance on a regular basis to provide confidence that
the project will satisfy the relevant quality standards called?
A. Quality Assurance
B. Quality Control
C. Quality Planning
D. Quality Review
A) Quality Assurance process deals with implementing the planned and systemic activities within the quality
system to assure the project team and the external stakeholders that the projec t would meet the quality
standards
B) Quality control involves monitoring specific project results to determine compliance to relevant quality
standards. Thus, choice B is incorrect
C) Quality planning involves the identification of quality standards relevant to the project. Thus, choice C is
incorrect
D) Quality Review is a form of quality audit and is a method of chec king adherence to proc esses and deriving
proc ess improvement ac tions. Thus, choice D is incorrect
In order to speed up a project, you made a decision to fast-track a phase currently performed with five team
members and another one which was planned to begin in four weeks time with another five team members. Which
of the following ac tivities should you do first?
A. Make sure that all exit criteria of the consecutive phase have been met to ensure the flow of
communications in a team situation which is more complex by a fac tor of 2.
B. Make sure that all entry criteria of the previous phase have been met by planning and performing a phase
gate meeting to assess technical aptness.
C. Make sure that all exit criteria of the previous phase have been met by planning and performing a phase
gate meeting to assess technical performance.
D. Restructure your team and delegate tasks in order to ensure the flow of communications in a
team situation which is more complex by a factor of 4.5.
Current Team Number: 5 Comm Channels: 10 New Team count: 10 Comm Channels: 10 * (10-1)/2 = 45 The
communications has gone up by fac tor of 4.5

You have been asked to submit a proposal for a project that has been put out for bid. First, you attend the bidder
conference to ask questions of the buyers and then clarify questions some of the other bidders asked. Which of
the following statements is true?
A. Bidder conferences are a tool and technique of the Plan procurement proc ess.
B. Bidder conferences are an input of the Conduct procurement process.
C. Bidder conferences are an output of the Conduct procurement process.
D. Bidder conferences are a tool and technique of the Conduct procurement process.
Bidder conferences are a tool and technique of the Conduct procurement process. They are used to ensure
that all prospec tive sellers have a clear and common understanding of the proc urement (both technical and
contrac tual requirements), and that no bidders receive preferential treatment

When is the right time to store or archive customer feedback, project records, and project deliverables for use in
future projec ts.
A. During closure
B. Throughout the execution of the project
C. During the planning phase
D. During c reation of lessons learned
Reusable or reference documents for creating historical records, which c ould be used in future projec ts, or
data to be maintained as per the contrac t stipulations are to be collec ted throughout the project but are
archived only during closure.

Qualitative Risk Analysis involves using which of the following?
A. A risk rating matrix
B. Expec ted monetary value (EMV)
C. Workarounds
D. Risk triggers
A) Qualitative Risk Analysis uses a risk rating matrix to rank risks and c reate an overall risk rating for the
project
B) Expec ted monetary value (EMV) is used in Quantitative Risk Analysis
C) Workarounds are done when unplanned risk events oc cur
D) Risk triggers are indicators that a risk event could happen

What is the best reason to create a work breakdown structure?
A. It provides authority for the Project Manager
B. It allows the project budget to be determined
C. It helps attain buy-in from the team doing the work
D. It allows the project completion date to be determined
The WBS helps get buy-in from the people doing the work. If they aren't involved in the creation of the WBS,
then it's not as easy to get the buy-in and the planning likely won't be as ac curate as it could be when the
people doing the work are involved.

As a projec t manager, you are in the proc ess of creating a list of all the project team members, their roles and
communication information. This information should reside in the:
A. Project Plan
B. Project Team Directory
C. Performance Reports
D. Responsibility Assignment Matrix
Project team directory: A documented list of project team members, their project roles and c ommunication
information

During which risk management process would you transfer a known risk?
A. Identify Risk
B. Perform Quantitative risk analysis
C. Plan Risk Response
D. Monitoring and control Risk
Risk response plan is used to handle risks on a project. For negative risks you c an avoid, transfer, mitigate, or
ac cept them. For positive risks you c an exploit, share, enhance, or accept them. The project team plan for
these risks during planning, but will implement the risk response plans during monitoring and c ontrolling.

All of the following are true about dec omposition except:
A. It's an output of the Define Scope process.
B. It's a tool and technique of the Create WBS Proc ess.
C. It is used to create a WBS.
D. It subdivides the major deliverables into smaller components.
Decomposition subdivides the major deliverables into smaller components. It is a tool and technique of Create
WBS. Out of Define sc ope is Scope statement.

While closing out projec t contrac ts, which of the following doc uments do you not need to review?
A. The contrac t itself
B. Procurement audit
C. Invoice records
D. Payment rec ords
Proc urement audits are not documents that need to be reviewed while closing out project contrac ts.
However, you should review the contrac t itself, and invoice and payment rec ords

You are working on a project under contrac t and are currently doing the Close Procurements process, which of
the following should you document?
A. Close proc urements proc edure
B. Verify sc ope
C. Formal acceptance
D. Administrative closure proc edures
The correc t answer is C, during the Close Procurements process you should document formal ac ceptance of
the work done under contrac t. Choice B, verify sc ope, is done during the Control Scope process. Choices A
and D, are things you would do, but are not things you would document.

Which of the following describes the cost of quality associated with inspec ting defective product at the
customer's site?
A. Internal failure costs
B. Appraisal Costs
C. Costs of doing business
D. External failure costs
External failure costs oc cur when the product has reached the customer who determines that the established
criteria and or requirements have not been met.

A project has three work packages. The project has a budget of $567. Ac tual cost of $326. The work pac kages
are 69%, 32% 21% completed respectively. Find out Earned value for the project?
A. $153
B. $148
C. Can not be calculated
D. $132
The EV for the project can only be calculated by multiplying the Work package cost by percentage of
completion of eac h work package. Find Average percent complete for the work package is incorrect method.

In a kick-off meeting for your project, you provided information to your team members about the different proc ess
groups which will be followed during project implementation. According to the PMI, what are the project
management process groups?
A. Conceptualizing, Initiating, Executing, Monitoring and Controlling, Closing
B. Initiating, Planning, Executing, Monitoring and Controlling, Closing
C. Initiating, Verifying, Exec uting, Monitoring and Controlling, Closing
D. Initiating, Planning, Executing, Controlling, Administrative Closure
The five proc ess groups are:
Initiating Process Group
Planning Process Group
Executing Proc ess Group
Monitoring and Controlling Process Group
Closing Proc ess Group

What is one of the most important skills a project manager can have?
A. Negotiation skills
B. Influencing skills
C. Communication skills
D. Problem-solving skills
Negotiation, influencing, and problem-solving skills are all important for a project manager to possess;
however, good communication skills are the most important skills a projec t manager can have.

Nina is a PMP and likes to have a whisky at lunch. Bec ause she is self-employed she does so at her leisure. Nina is
working as a contrac tor for a company that prohibits drinking during working hours. Nina is aware of this policy,
but still has her whisky at lunch. How would you c haracterize Nina's behavior?
A. Nina has a drinking problem.
B. As a self-employed individual, Nina may drink at lunch if she wishes.
C. Nina is violating the Member Standards of Conduct because she is not abiding by the rules of the
community in which she is working.
D. Nina is violating the Member Standards of Conduct, protecting the public from harm.
The correc t answer is C. Since Nina is not following the rules of the community, she is violating the PMI Code
of Ethical Conduct. Answer A it is incorrect, it may or may not be true. Answer B is incorrect because the
organization prohibits it. Answer D is incorrec t because we do not know the nature of Nina's job or whether
she is putting the public in jeopardy.

The proc ess of ensuring that the seller’s performance meets contrac tual requirements is done as part of:
A. Solicitation
B. Conduct Procurement
C. Administrate Procurement
D. Project Closeout
Proc urement administration, managing the contrac t and relationship between the buyer and seller, reviewing
and documenting how a seller is performing or has performed to establish required correc tive actions

Measuring quality of a product against a standard is called:
A. Benchmarking
B. Root cause analysis
C. Inspec tion
D. Pareto Analysis
Benchmarks give a guide for the project manager. Benchmarking involves comparing ac tual or planned project
prac tices to those of comparable projects to identify best prac tices, generate ideas for improvement and
provide a basis for measuring performance. They come from previous projec ts and c an be used as a basis to
construct plans for a new project.

In which of the following objectives are the techniques "Brainstorming and lateral thinking" used in the sc ope
definition proc ess?
A. Product analysis
B. Alternatives identification
C. Expert judgment
D. Stakeholder analysis
Brainstorming and lateral thinking are methods of Alternatives Identification.

Whose needs are required to be addressed by information distribution?
A. Senior management
B. Project team
C. Stakeholders
D. Project sponsor
A) Choice A is incorrect as senior management gets periodical updates on the project, however, the
information distribution proc ess does not restrict only till senior management
B) Choice B is incorrect as the primary focus of information distribution proc ess if for customers and followed
by all relevant people involved in the project
C) Information distribution involves making needed information available to all project stakeholders
D) Choice D is incorrect as information distribution proc ess is designed to address the communication needs of
all stakeholders and projec t sponsor is only a part of stakeholder

You are trying to dec ide whether to lease or buy an item for your project. The daily lease cost is US $150. To
purchase the item, the investment cost is US $2,000 and the daily cost is US $50. In how many days will the
lease cost be the same as the purchase cost?
A. 10
B. 15
C. 20
D. 25
150*X = 2000 + 50*X => 100 X = 2000 => X = 2000/100 = 20 Days

You are the project manager of the Bigger Britches Project. Your projec t will cost your organization $250,000 to
complete over the next eight months. Once the project is completed, the deliverables will begin earning the
company $3,500 per month. Which of the following represents the time to recover the costs of the project?
A. Not enough information to know
B. 32 months
C. 72 months
D. Five years
The time to recover money from the project is 72 months. This is calculated by dividing the ROI of $3,500 per
month into the projec t cost.

Which of the following believed that quality was a managment problem?
A. Juran
B. Deming
C. Crosby
D. Ishikowa
W. Edward Deming said that quality is a management problem 85% of the time.
Joseph Juran believed in the fitness for use principal and promoted conformance and quality by design.
Crosby believed in c onformance to requirements and zero defec ts.
Ishikowa is a type of chart.

Parkinson’s Law is best defined by
A. Work will reduce as team grows
B. Work will fill all available time
C. Project will expand as it goes along
D. Team performance will increase as project move on
Executing - Time Management
Parkinson's Law in regards to time in which ‘The amount of time in which one has to perform a task is the
amount of time it will take to complete that said task.’

You know that BAC = 500, PV = 325, AC = 275, and EV = 250 and that you are experiencing typical variances.
What is ETC?
A. 227.3
B. 250
C. 274.7
D. 525
You must first calculate CPI in order to calculate ETC. CPI is EV / AC. We have 250 / 275 = .91. ETC with
typical variances is (BAC – EV) / CPI. numbers are (500 – 250) / .91 = 274.7.

Your organization is holding a bidder conference to disc uss the project with prospec tive sellers, and a trusted
seller you have worked with many times in the past has asked if they can meet with the project manager the day
before the conference to cover some sensitive questions they do not wish to ask in front of others sellers. Should
your organization meet with the seller?
A. Yes, the more that prospec tive sellers know about the projec t, the better.
B. Yes, they are your primary seller, and past history should be fac tored in.
C. No, prospective supplies should be kept on equal footing.
D. No, that would represent an illegal ac tivity.
If you are involved in formal proc urement, you should make every effort to keep sellers on equal footing. If one
seller is provided with an advantage, it negates much of the value of the procurement process.

What is the benefit of using a collocated team?
A. The project team is dispersed so the team is self-led
B. The project team is dispersed so communication increases
C. The project team is in the same physical location so their ability to work as a team is enhanced
D. The project team is in the same physical loc ation so project costs are greatly reduced
A) Choice A is incorrect bec ause collocated teams are not dispersed for effec tive utilization of resources
B) Choice B is incorrect communication process had to be simple and this can be achieved when the team is
collocated and not dispersed
C) When a project team is colloc ated, all of the project team members are in the same physical loc ation in
order to increase their ability to work as a team
D) Choice D is incorrect bec ause a colloc ated team does not ensure that costs are reduced. In some
situations, costs may be increased due to travel in order to bring all the team members together to complete
the projec t

Different or conflicting objectives among project stakeholders:
A. Should be encouraged
B. Should be ignored
C. Can make it difficult for project managers to manage stakeholder expectations
D. Generally makes it easy for project managers to manage stakeholder expectations
A) Choice A is incorrect bec ause encouraging the difference will lead to complex in managing project for a
project manager
B) Choice B is incorrect bec ause a project manager shall not ignore the conflicts among the stakeholders.
Ignoring will lead to non-ac ceptance of the project work and will be difficult for the projec t manager to
complete the work due to different instructions
C) Projec t managers must manage stakeholder expec tations, which c an be difficult because stakeholders often
have very different or conflicting objectives
D) Choice D is incorrect bec ause difference and c onflicts among the stakeholders will lead to multiple
instructions over the same task and getting ac ceptance from them will affec t the project performance

What are the top 3 c auses of conflict on a project team?
A. Schedule, Priorities & Resources
B. Schedule, Cost & Resources
C. Priorities, Cost & Resources
D. Resources, Cost and Personality
According to the PMBOK, the major causes of conflict in order of intensity are: Schedule, Project Priorities,
Resources, Technical Opinion, Administrative Proc ess, Cost, and Personality.

A planning tool, which provides details of the work to accomplish, but also provide some preliminary description of
the work to be done in later phases is called:
A. Progressive detailing
B. Rolling wave planning
C. Strategic
D. Operational
This technique of rolling wave planning will be done when; Dec omposition may not be possible for a deliverable
or subproject that will be ac complished far into the future. The project management team usually waits until
the deliverable or subprojec t is clarified so the details of the WBS can be developed.

What are inputs to Define Ac tivities?
A. Project sc ope statement, Activity List, Ac tivity attributes, Milestone List, Organisational proc ess assets
B. Enterprise Environmental Fac tors, Organizational Proc ess Assets, Activity List, Activity attributes,
Resource Availability, Project Management Plan
C. Scope Baseline, Enterprise Environmental Factors, Organizational Process Assets
D. Dec omposition, Templates, Rolling Wave Planning, Expert Judgment
The inputs to Define Ac tivities are Scope Baseline, Enterprise Environmental Fac tors, and Organizational
Proc ess Assets.

You are in the proc ess of identifying stakeholders and doc umenting all relevant information. You have a list of
names, positions, locations and potential influences to the project. You are also trying to figure out which
stakeholders can significantly impact the project and c reating strategies for gaining support. Which document are
you most likely updating?
A. Stakeholder Register
B. Stakeholder Analysis Matrix
C. Stakeholder Charter
D. Project Charter
Initiating - Communications Management
The Stakeholder Analysis Matrix identifies strategies for gaining stakeholder support. It is used to represent
information in the stakeholder management strategy. The Stakeholder Register mainly shows identification
information, assessment Information and Classification (PMBOK ver 4 page 250)

Tabitha is in charge of a project in a functional organization structure. What do you know about Tabitha's role as
a project manager?
A. Resource availability will be limited and her role is full-time
B. Resource availability will not be limited and her role is full-time
C. Resource availability will not be limited and her role is part-time
D. Resource availability will be limited and her role is part-time
Tabitha is in a Functional organizational structure, thus she will have a part-time role and resource availability
will be limited.

You are creating network diagram and you realize that a path has negative float. What does that mean?
A. You are behind schedule
B. You are ahead of sc hedule
C. You are on schedule
D. There is a cushion of a few days before the start of the next ac tivity.
Negative float means you are behind schedule or the deadline has been moved forward.

One of your teams currently has some production flaws. Which analysis tool will allow you to determine the cause-
and-effect of the production faults?
A. A flowchart
B. An Ishikawa diagram
C. A Pareto diagram
D. A control chart
A) Choice A is incorrect. A flowchart will show how a process moves through the system, but not the cause-
and-effect of the problems involved
B) The key words “cause-and-effec t” equate to the Ishikawa diagram
C) Choice C is incorrect as well. A Pareto chart maps out the causes and frequency of problems
D) Option D, a control chart, plots out the results of sampling, but it doesn’t show the cause-and-effec t of
problems

The Work Breakdown Structure (WBS) is an output of which proc ess
A. Develop Project Charter
B. Define Sc ope
C. Create WBS
D. Verify Scope
The Work Breakdown Structure (WBS) is an output of the Create WSB process, which is the process where
the scope statement is dec omposed into smaller and more manageable deliverables and is displayed as a
hierarchical representation of all deliverables.

Why is it nec essary to archive project records?
A. It is a good prac tice
B. It is recommended by the project office
C. To support future projects
D. To document project performance
Project archives are required to support future projects in the performing organization. Even though the other
choices are also true, the best response is choice C.

Which of the following can best help a project manager during projec t execution?
A. Stakeholder analysis
B. Change Control Board
C. PMIS
D. Scope verification
Choice A is incorrect, as stakeholder analysis should have been c ompleted during the project planning
proc esses.
Choice B also incorrect. CCBs can assist the projec t manager, but not as much as the control and assistance
offered through a PMIS.
Choice C is correct. A PMIS can assist the project manager the most during projec t execution. It does not
replac e the role of the projec t manager. This is a tool and technique of direct and manage projec t execution.
The other tool and technique being expert judgment.
Choice D is incorrect. Sc ope verification is proof of the project work, not an assistant to the project manager.

As a contrac t project manager, you have just finished a major product development project for a bike
manufac turer, Super bikes. Speed-Bike, a competitor to Super-Bike, has approached you to develop a similar
product for it. What should you do?
A. Take the job. Leverage the knowledge of Superbikes to create an even better product for Speed-Bike.
B. Dec line the engagement due to confidentiality issues.
C. Determine whether the new engagement will cause you to breach any confidentiality issues with
Superbikes.
D. This situation represents your ability to leverage your industry knowledge. Take the engagement.
Although opportunities arise often in which we have industry information without causing confidentiality
problems, this is a case in which a competitor wants a similar product. The likelihood that confidentiality will be
breac hed is very high. Answers A and D are tempting bec ause we are often asked as PMs to do projects
within the same industry. Answer B is possible, but not likely.
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