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ENT403 List of Questions

Latex formatted questions may not properly render

Q1 Fixed price contracts are also known as which of the following

cost plus
lump sum
purchase order
time and materials

Q2 The software development project is going through planning. In evaluating the

Triple Constraint, which of the following is the highest priority
scope
time
cost
they are all equal unless otherwise stated in the charter

Q3 Which of the following is used to control cost-related items on a project?

cost control
budget management plan
cost management plan
work breakdown structure

Q4 What does a Responsibility Assignment Matrix do for the project manager?

shows who is in the project
shows who is to perform the work and how long it will take
shows what order the activities come in
shows who is to perform work in certain areas of the project

Q5 Which of the following roles controls resources and manages a business unit?
functional management
senior management
sponsor
project management

Q6 All the following are names used for a seller except __________
contractor
service provider
supplier
acquiring organisation

Q7 In evaluating projects, financial analysis and economic analysis use __________

and _____________ techniques to arrive at their answers
discounting and compounding

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discounting and simplifying

evaluating and compounding
none of the above

Q8 Two superior investment criteria which fully recognise the timing of cash flows
are ________ and _________.
accounting rate of return method and net present value method
internal rate of return method and accounting rate of return method
net present value method and internal rate of return method
none of the above

Q9 Which of the following is not current asset

account recieveables
inventory
prepaid expenses
none of the above

Q10 A ___________ is a statement which shows the forecasts of actual receipts of

cash (inflows) and the disbursement of cash (outflows
cash flow statement
balance sheet
revenue statement
projected cash flow statement

Q11 _________ is the outlay incurred to acquire some asset

expenses
cost
revenue
none of the above

Q12 Items that have more probability of failure in the initial years of their life and
with the increase in the life of an item the chances of failure become less experience
what __________kind of failure.
retrogressive failure
sudden failure
random failure
gradual failure

Q13 Programme Evaluation and Review Technique (PERT) and Critical Path
Method (CPM) are two techniques that are widely used in _________ and _________
the large projects
monitoring and evaluating
monitoring and coordinating
planning and scheduling
all of the above
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Q14 __________ is a process for identifying and developing internal people with the
potential to fill key business leadership positions in the company.
strategic planning
tactical planning
succession planning
none of the above

Q15 _________ is the listing or display that emerges when major project activities
have been estimated, subjected to their logical sequences and timed
project list
project file
project schedule
project plan

Q16 The second stage in the project cycle is ____________

project selection stage
project identification stage
project evaluation stage
project idea stage

Q17 The greater the level of complexity and uncertainty about the project objectives
the greater the need for __________
information
motivation
monitoring
coordinating

Q18 __________ is a process used to ascertain what has happened during a given
activity, whether a programme or activity is working, and whether the initial
commitment has been carried out and achieved
evaluation
monitoring
coordinating
communication

Q19 __________ is equal to time recorded on a job multiplied by the standard hourly
rate.
standard labour cost
Direct labour cost
indirect overhead cost
none of the above

Q20 ___________ assists in passing information on policies and provides feedback

mechanism through which staffs respond to communication.
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horizontal communication
circular communication
Vertical communication
linear communication

Q21 Calculate the net present value of a project which cost N500,000. But generates
cash inflows of N150,000, N300,000 and N400,000 over a three year period. The
required rate of return is 10%.
N84,550
N384,550
N184,550
N284,550

Q22 Cash outflows include the following except ____

Interest charges
�?� Selling expenses
�?� Taxation
rent

Q23 ____ is an activity, which simply shows the logical relationship and does not
consume any resource.
circular
sequencial
Dummy activity
logical activity

Q24 The following are list of all the activities that can be involved in a project of
building construction except_____
Arrangement of Finance,
Purchase of materials
site selection
all these

Q25 When all activities and events in a project are connected logically and
sequentially, they form a ____
cycle
network
straight line
non of these

Q26 The following are standard four phase project life cycle except .
close out
initiation
lanning
monitoring
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Q27 A bank lends N200, 000 to Dr. Ogbeide and at the end of the day earns interest
of N18, 000. What is the before- tax cost of debt?
0.82
0.9
1.5
0.2

Q28 ______is commonly associated with firms operating in a number of different

businesses and markets.
decision analysis
operating analaysis
startegic analysis
Portfolio analysis

Q29 A sum of N1,000 is placed in a savings account that promises 10% interest
annually. What will be the compound value at the end of 2 years?
N84,550
N1,510
N1,800
N1,210

Q30 A project requires a cash outlay of N1,000 and yields an annual cash inflow of
N200 for a period of 4 years and 400 for the fifth. Calculate the payback period.
4
4.5
5
5.5

Q31 ___ activities are probabilistic in nature in the sense that the time required to
complete it cannot be specified correctly.
Programme Evaluation and Review Technique
Pay Back Periods
NETWORK activities
all of these

Q32 ____ is a very flexible document; it can hold anything and everything required
to achieve the organization�??s goals.
the tactical plan
the mission statement
a strategic plan
a contingency plan

Q33 Projects vary in duration, scope, and ________

complexity
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time
similarity
variance

Q34 A bank lends N200, 000 to Dr Bako and at the end of the day earns interest of
N18, 000. What is the before- tax cost of debt?
0.03
0.05
0.15
0.09

Q35 A bakery project costs N2,000, 000 to set up and generates year end cash inflows
of N800,000, N900,000, N1,000,000 and N800,000 over a four year period. The
required rate of return is 10%. Calculate the Net present value of the bakery project.
N768,000
N980,000
N1O0,000
N800,000

Q36 _____ is a working document that results from matching the organisations
available resources to the project plan
a project schedule
work breakdown structure
working structure
none of these

Q37 ____tries to describe the various stages that are involved from the conception of
a project idea to when the project is executed
the project stages
the project cycle
project idea stage
project execution stage

Q38 Generally, the method of recovering overheads as a levy on direct labour costs is
called ____
overhead cost
indirect labour cost
absorption costing
recovering cost

Q39 ____is an examle of lines of communication in a project team.

vertical communication
external communication
internal communication
horizontal communication
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Q40 The following are examples of projects except ___

construction of a 50-bed hospital at Ikeja by the Lagos State government
sinking of 10 water boreholes at Ikorodu town by the local government council
dualisation of the Lekki-Epe, Lagos highway by the Lagos Ministry of Works
all of these

Q41 Which of the following is an ouput of initiating?

work results
an assigned contract
corrective action
assignment of the project manager

Q42 Consider a case where a university is newly located in an environment. Many

investments will begin to spring up. New housing developments will begin to spring
up; canteens will begin to spring up; hair dressing salons, etc. will begin to spring up
to cater for the needs of the new university community. Such constitute the_____
backward linkage effects of a project.
linkage effects of a project.
forward linkage effects of a project.
none of these

Q43 A barbers�?? shop costs N32,400 to establish and is expected to generate cash
inflows of N16,000,N14,000 and N12,000 over its life of three years. The internal rate
of return lies between ____
10% and 12%
14% and 16%
12% and 14%
15% and 17%

Q44 A project costs N100,000 and has a scrap value of N40,000. The stream of
income before depreciation and taxes are N40,000, N50,000 and N60,000 for the first
three years. The tax rate is 50% and depreciation is on straight line basis. Calculate
the accounting rate of return for the project.
0.4222
0.2142
0.1045
0.2525

Q45 A project requires a cash outlay of N200,000 and yields an annual cash inflow of
N50,000 for a period of 10 years; calculate the payback period.
10 years
2 years
4 years
5 years
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Q46 One of the major current liabilities is the bank overdraft

yes
no
cannot say
none of these

Q47 Generally we can classify assets under the following headings except____
current assets
fixed assets
investments assets
recurrent assets

Q48 Sensitivity analysis is a tool for subjecting cash flows to _____

risk analysis
real analysis
scenario analysis
subjective analysis

Q49 Cash outflows include the following except ____

raw material expenses
salary and wages
rent
loan repayment

Q50 The following are the time estimates in PERT but____

pessimistic time
optimistic time
implementing
likely

Q51 When two activities start at the same event and end at the same event, they
should be shown by means of a ____
equality
standard activity
risk activity
dummy activity

Q52 Event number should be written inside the circle or ____

on the line
nob
nude
node

Q53 The following are list of all the activities that can be involved in a project of
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building construction except_____

site selection
arrangement of finance
approval of plan by municipal authorities
all these

Q54 In PERT and CPM the milestones are represented as ____

PERT
events
planned
task

Q55 _______ processes to ensure that all the work required to complete the project is
defined.
scope management
cost management
time Management
integration management

Q56 ______is a systematic process of envisioning a desired future, and translating

this vision into broadly defined goals or objectives and a sequence of steps to achieve
them.
long-term Planning
strategic Planning
succession Planning
scientific Planning

Q57 In what knowledge area area does activity resources estimating occur?
scope
human resources
time
procurement

Q58 _____ enables the project managers or administrators to break down a large or
complex project into smaller and more manageable units
breakdown
job breakdown
work breakdown
all of these

Q59 In most cases, after the assignment has been completed, the team is _______
denied
absorded
unbunded
disbanded
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Q60 Most projects may require elements of critical risks and ______
certainty
riskiness
planning
uncertainty

Q61 Calculate the net present value of a project which cost N500,000. But generates
cash inflows of N150,000, N300,000 and N400,000 over a three year period. The
required rate of return is 10%.
N84,550
N384,550
N184,550
N284,550

Q62 Cash outflows include the following except ____

Interest charges
�?� Selling expenses
�?� Taxation
rent

Q63 ____ is an activity, which simply shows the logical relationship and does not
consume any resource.
circular
sequencial
Dummy activity
logical activity

Q64 The following are list of all the activities that can be involved in a project of
building construction except_____
Arrangement of Finance,
Purchase of materials
site selection
all these

Q65 When all activities and events in a project are connected logically and
sequentially, they form a ____
cycle
network
straight line
non of these

Q66 The following are standard four phase project life cycle except .
close out
initiation
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lanning
monitoring

Q67 A bank lends N200, 000 to Dr. Ogbeide and at the end of the day earns interest
of N18, 000. What is the before- tax cost of debt?
0.82
0.9
1.5
0.2

Q68 ______is commonly associated with firms operating in a number of different

businesses and markets.
decision analysis
operating analaysis
startegic analysis
Portfolio analysis

Q69 A sum of N1,000 is placed in a savings account that promises 10% interest
annually. What will be the compound value at the end of 2 years?
N84,550
N1,510
N1,800
N1,210

Q70 A project requires a cash outlay of N1,000 and yields an annual cash inflow of
N200 for a period of 4 years and 400 for the fifth. Calculate the payback period.
4
4.5
5
5.5

Q71 ___ activities are probabilistic in nature in the sense that the time required to
complete it cannot be specified correctly.
Programme Evaluation and Review Technique
Pay Back Periods
NETWORK activities
all of these

Q72 ____ is a very flexible document; it can hold anything and everything required
to achieve the organization�??s goals.
the tactical plan
the mission statement
a strategic plan
a contingency plan

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Q73 Projects vary in duration, scope, and ________

complexity
time
similarity
variance

Q74 A bank lends N200, 000 to Dr Bako and at the end of the day earns interest of
N18, 000. What is the before- tax cost of debt?
0.03
0.05
0.15
0.09

Q75 A bakery project costs N2,000, 000 to set up and generates year end cash inflows
of N800,000, N900,000, N1,000,000 and N800,000 over a four year period. The
required rate of return is 10%. Calculate the Net present value of the bakery project.
N768,000
N980,000
N1O0,000
N800,000

Q76 _____ is a working document that results from matching the organisations
available resources to the project plan
a project schedule
work breakdown structure
working structure
none of these

Q77 ____tries to describe the various stages that are involved from the conception of
a project idea to when the project is executed
the project stages
the project cycle
project idea stage
project execution stage

Q78 Generally, the method of recovering overheads as a levy on direct labour costs is
called ____
overhead cost
indirect labour cost
absorption costing
recovering cost

Q79 ____is an examle of lines of communication in a project team.

vertical communication
external communication
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internal communication
horizontal communication

Q80 The following are examples of projects except ___

construction of a 50-bed hospital at Ikeja by the Lagos State government
sinking of 10 water boreholes at Ikorodu town by the local government council
dualisation of the Lekki-Epe, Lagos highway by the Lagos Ministry of Works
all of these

Q81 The project manager has completed the project scope on time, but over budget,
and is in the process of getting signoff from the customer. What is the activity called?
formal acceptance
scope verification
project archives
contract closeout

Q82 You are in the process of defining the quality standards for the project. You have
defined the variables to measure and determined what attributes are important to
you. Which of the following is not an attribute?
inches
depth
pounds
kilometers

Q83 You are a project manager assigned to a roject that has spent $3,000,000. The
original budget was $2,000,000. Senior management is considering stopping this
project. What term describes the $1,000,000 that is gone forever?
expected monetary value
the budgeted cost of work performed
Sunk cost
opportunity cost

Q84 A project manager has decided to outsource the installation of router hardware.
The buyer has given specific details to the vendor on the schedule and cost of each
site. This will also be a fixed price contract. What type of scope of work is being
provided to the sellers?
time and material
functionality
design
scope statement

Q85 The project charter is issued to formally authorize a project. It also provides the
following except_________
gives the project existence
defines the scope of statement
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contains or makes preference to the project description

outlines the project manager's authority

Q86 _________ is the private sector�??s view of a project without considering a

project�??s impact on the society.
production analysis
evaluation analysis
economic analysis
financial analysis

Q87 _________ correctly recognises the fact that cash flows arising different time
periods differ in value and are comparable only when their equivalent- present
values are found out.
net present value method
accounting rate of return method
payback period
internal rate of return method

Q88 _______ are long-term assets held for periods longer than one year
current assets
Fixed assets
prepaid expenses
current liabilities

Q89 _______ are the total value of goods or service sold to third parties.
debit sales
credit sales
total sales
cash sales

Q90 The___________ is a forecast of the revenues, expenses and the net profit of an
enterprise or project
projected income statement
financial statement
projected cash flow statement
balance sheet

Q91 ________ is when constant probability of failure is associated with equipment

that fails because random causes such as physical shocks that are independent of age
sudden failure
random failure
retrogressive failure
progressive failure

Q92 ___________ is the application of skills and knowledge and the use of tools and
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techniques applied to activities in a project to complete the project as defined in the

scope.
evaluation management
general management
project management
coordination management

Q93 A _____________ is a plan devised for an outcome other than in the usual
(expected) plan
contingency plan
succession plan
financial plan
strategic plan

Q94 In project management, __________ are very useful for managers who have the
responsibility of allocating tasks to different people in a project team.
bar charts
graphs
pie charts
matrix charts

Q95 The function of___________ is to ensure that the budget for the project is
actually spent on the project and that the project is completed on schedule
the project monitoring team
the project management team
the project evaluation team
the project coordinating team

Q96 The ___________ role is the most critical role for the success of the project
communication
evaluation
coordination
management

Q97 __________is a deliberate systematic means of collection and analysis of

information as a project progresses which intended at adequate efficiency and
effectiveness of a project embarked on with thorough use of resources
management
project control
monitoring
evaluation

Q98 ______ is the total cost of a job or project before the addition of a mark-up for
the purpose of profit.
factory cost
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direct cost
fixed cost
indirect cost

Q99 _____is created by top management to tackle or solve a major problem

management force
work force
monitoring force
a task force

Q100 Project planning is part of project management, which relates to the use of
schedules such as _______ to plan and subsequently report progress within the
project environment
gant chart
gantt chart
bar chart
graph chart

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