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1. Project management can be defined as planning, directing, and controlling resources to meet the technical, cost, and time
constraints of the project.
TRUE
Project management can be defined as planning, directing, and controlling resources (people, equipment, material) to
meet the technical, cost, and time constraints of the project.
2. A project may be defined as a series of related jobs directed toward some major output and requiring a significant
period of time to perform.
TRUE
A project may be defined as a series of related jobs usually directed toward some major output and requiring a
significant period of time to perform.
FALSE
5-1
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 05-02
Topic: Managing Projects
FALSE
5. Complex projects are often subdivided into a series of tasks that are typically configured to be not longer than several
months in duration.
TRUE
A task is a subdivision of a project. It is usually not longer than several months in duration and is performed by
one group or organization.
6. A work breakdown structure is used in project management but it is not used when the critical path method is involved.
FALSE
Activities are identified as part of the work breakdown structure. Activities are also the essence of the Critical Path
Method. Hence, the work breakdown structure is used when the critical path method is involved.
AACSB: Analytic
Bloom's: Create
Difficulty: 2 Medium
Learning Objective: 05-02
Topic: Managing Projects
7. The fact that organizations are flattening is one of the reasons that project management is important.
TRUE
As organizations flatten (through reengineering, downsizing, outsourcing), more will depend on projects and project
leaders to get work done, work that previously was handled within departments.
5-2
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Bloom's: Remember
Difficulty: 1 Easy
Learning Objective: 05-01
Topic: What Is Project Management?
TRUE
Gantt charts, sometimes referred to as bar charts, show both the amount of time involved and the sequence in
which activities can be performed.
9. Upper level management must decide between pure, functional, and matrix structures as ways to organize projects.
TRUE
Before the project starts, senior management must decide which of three organizational structures will be used to tie the
project to the parent firm: pure project, functional project, or matrix project.
10. One of the disadvantages of a pure project organizational structure is that the project manager has full authority over the
project.
FALSE
The project manager having full authority over the project is listed as an advantage in the text.
11. One of the advantages of a functional project organizational structure is that a team member can work on several
projects.
TRUE
That a team member can work on several projects in a functional organizational structure is listed as an advantage in the
text.
5-3
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
12. A matrix project attempts to blend properties of functional and pure project structures.
TRUE
The classic specialized organizational form, "the matrix project," attempts to blend properties of functional and pure project
structures.
FALSE
14. A disadvantage of a matrix project organizational structure is that a project manager is held responsible for successful
completion of the project.
FALSE
A project manager is held responsible for successful completion of the project is listed as an advantage of a matrix
organizational structure.
15. The critical path of activities in a project is the sequence of activities that form the shortest chain in a project network
of activities.
FALSE
The critical path of activities in a project is the sequence of activities that form the longest chain in terms of their time to
complete.
5-4
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
16. CPM is an abbreviation for Critical Path Method.
TRUE
17. In CPM the late start time estimate is the latest time you can start an activity and still keep the entire project on schedule.
TRUE
The late start and late finish are the latest times activities can start and finish without delaying the project.
18. The critical path in a project is that sequence of activities that consume the longest amount of time in a project network
of activities.
TRUE
The critical path of activities in a project is the sequence of activities that form the longest chain in terms of their time to
complete.
19. The critical path in a CPM analysis is always the shortest path through the network.
FALSE
The critical path of activities in a project is the sequence of activities that form the longest chain in terms of their time to
complete.
20. Slack activity time is the difference between the early start and the late finish of a project activity time.
FALSE
The difference between the late start time and early start time is the slack time.
5-5
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
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