PMP Practice Exam Exam Preparation 1

1. Integration management is primarily done by a. Product Manager b. Project Manager c. Functional Manager of each department d. None of the Above Answer: b 2. Integration Management Process includes the following a. Develop Project Charter, Develop Project Management Plan b. Direct and Manage Project Execution, Close Project or Phase c. Both a and b d. None of the Above Answer: c 3. The development of project charter a. Takes Input from all project management knowledge areas b. Takes Input from only the client c. Takes Input from higher level management d. None of the Above Answer: a 4. The present value of $500,000 received 5 years from now if the interest rate is 11% is a. $296725.66 b. $29672.56 c. $296726.56 d. $396725.66 Answer: a 5. What is the usability of Net Present Value in Project Management a. It is not useful in Project Management b. The project with greatest NPV is selected if there is a comparison between projects based on NPV c. The project with lowest NPV is selected if there is a comparison between projects based on NPV d. NPV is used only for calculating profit margins but is not useful in selection of projects Answer: b 6. Based on the calculations below which project should be chosen: Project X will take 10 years to complete and has a NPV of $30000 Project Y will take 5 years to complete and has a NPV of $15000 a. Project Y b. Project X c. There is no difference between Project X and Project Y and wither can be chosen d. Will not choose any of the above project Answer: b 7. Based on the calculations below which project should be chosen: Project X will take 5 years to complete and has a NPV of $30000 Project Y will take 8 years to complete and has a NPV of $15000 a. Project Y b. Project X c. There is no difference between Project X and Project Y and wither can be chosen d. Will not choose any of the above project Answer: b 8. Simon, a project manager was entrusted with the responsibility of choosing a project and given the following information. Which project Simon will choose? Project Z has an IRR of 50 percent and Project Y has an IRR of 51%. a. Project Z b. Project Y c. Simon will not choose any projects since IRR is not a criterion to choose projects d. Simon will not choose any of the above projects because of high IRR Answer: b 9. Peter, a project manager was entrusted with the responsibility of choosing a project and given the following information. Which project Peter will choose? Project D has a payback period of 2 years whereas Project E has a payback period of 1 year. a. Project E b. Project D c. Peter will not choose any projects since Payback Period is not a criterion to choose projects d. Peter will not choose any of the above projects because of high Payback Period Answer: a 10. John, a project manager was entrusted with the responsibility of choosing a project and given the following information. Which project John will choose? Project F has a benefit cost ratio of 1.5 whereas Project H has a benefit cost ratio of 1.7. a. Project F b. Project H c. John will not choose any projects since benefit cost criteria is not a criterion to choose projects d. John will not choose any of the above projects because of high Benefit Cost Ratio Answer: b 11. Greg, a project manager was entrusted with the responsibility of choosing a project and given the following information. If Greg chooses Project K what is the opportunity cost of selecting Project K? Project I with NPV of $60000 and Project K with NPV of $10000 a. $10000 b. $60000 c. $50000 d. $70000 Answer: b 12. Who creates the Project Statement of Work a. Product Manager b. Project Manager c. Customer or Sponsor of the Project d. None of the Above Answer: c 13. What are the different baselines used for measuring a project a. Scope Baseline b. Cost Baseline c. Schedule Baseline d. All of the Above Answer: d 14. John, , midway through the project finds that the cost and schedule baseline has deviated significantly from the initial estimation. What is the next step that John should do? a. Review Cost baseline and take corrective actions b. Review Schedule baseline and take corrective actions c. Review Both Cost and Schedule baseline and take corrective actions d. Review the project risk management process Answer: d 15. Who attends the Kickoff Meeting? a. Project Team b. Senior Management Team c. All parties to the project d. Client and Management team Answer: c 16. Greg, a project manager found some deviations in his project and took corrective actions and changed the baseline of the project and since Greg had absolute control on the project he was able to implement quickly. Is his actions correct? a. Yes, since Greg has absolute authority and he changed the baseline his actions is right. b. No, since Greg has absolute authority he should not behaved in an arrogant way to change the baseline without consultation c. No, Greg should go to the Integrated Change control process to get his changes approved before implementing the changes d. Yes, since Greg is accountable it is fine if he takes care of implementing the changes without any formal approval Answer: c 17. Defect Repair is sometimes also referred to: a. Corrective Action b. Scrap c. Rework d. There is no other way to define Defect Repair Answer: c 18. Simon decides he has to make a change in his project. Which Steps should Simon follow in order? a. Evaluate the Impact, Create Options, Get Internal/External Buy In b. Evaluate the Impact, Get Internal/External Buy In, Create Options c. Create Options, Evaluate the Impact, Get Internal/External Buy In d. Get Internal/External Buy In, Evaluate the Impact, Create Options Answer: a 19. What are the main tasks performed in Integrated Change Control? a. Create a Change Request b. Assess the Change, Look for Options, Change is approved or rejected, Updated the status of the change in Change Control c. Change Project Baseline Documentation d. Manage Stakeholders Expectation Answer: b 20. A customer for Company A says they can’t pay for the project anymore and agreed to pay any fees because of early termination. What should Greg, as a project manager do in this circumstance? a. Greg should send the invoice for the money owed to the Project b Greg should negotiate with the customer and do the project in a reduced rate so the project can be completed c. Greg should go to Close Project Phase of the project and follow the process d. Greg should start looking for other opportunities since he knows he will be laid off if the project is not successfully implemented Answer: c 1) Who holds the key responsibility of integration in an project? a) Everyone in team b) Team Leader c) CEO d) Project Manager Answer : d Explanation: Project manager is the captain of the ship in a project and integration management forms one of his key responsibilities 2) During project execution if there is a need to change scope of project is this a good practice. Can a project manager allow this a) Yes . Broader scope could help generate more revenue b) No. This is called scope creep and a project manager should never permit it c) as needed basis d) All of above Answer : b Explanation: Scope creep occurs when a stakeholder involved in a project feels that the scope can be extended and a project manager should never permit scope creep. This is emphasised by PMI's PMBOK 3) An effective stakeholder communication tool is a) Project plan b) Project charter c) Work breakdown structure aka WBS d) Scope plan Answer : c Explanation: A work breakdown structure is the chart that helps in easy and clear communication among all the project stakeholders involved in a project