Deck 1: The World of Project Management

Question 1

Nonnumeric project selection methods are only suitable if numeric methods are not available.

Answer 1

False

Question 2

One of the few similarities between project management and general management is that both exist in the well-defined organizational structure of superior/subordinates in the overall organization.

Answer 2

False

Question 3

Programs are subdivisions of projects.

Answer 3

False

Question 4

A PM does not need to understand why a project is selected for funding because he did not initiate the process.

Question 5

One can trade-off time and cost when managing a project, but the project's technical specifications must be maintained exactly as the client initially specifies.

Question 6

Project budgets are primarily modifications of budgets for the same activity in the previous period.

Question 7

When using financial methods for selecting projects, the payback period is the simplest and best method to use.

Question 8

A disadvantage of using scoring models rather than financial models for selecting projects is that they cannot include the project's profitability.

Question 9

The main distinction between platform and breakthrough projects is that the former usually depend on existing technology.

Question 10

A similarity between project management and general management is the tendency to "manage by exception."

Question 11

The main distinction between platform and derivative projects is that the latter depend on existing technology.

Question 12

There has been a growing use of projects to achieve an organization's strategic goals

Question 13

A disadvantage of using the discounted cash flow method (or net present value) for selecting projects is that it ignores all non-monetary factors associated with the project except risk.

Question 14

A primary purpose of forming projects is to assign the responsibility for accomplishing some organizational task to a specific person or small group.

Question 15

One reason for the emphasis on project management is that tasks fit neatly into business-as-usual.

Question 16

Many recent developments in project management are being driven by changes in the nature of the American workforce.

Question 17

A disadvantage of using the payback period method for selecting projects is that it cannot reflect the time-value of money.

Question 18

Projects are subdivisions of programs.

Question 19

While general managers have their authority limited to specific areas in the overall organization, project managers have authority over any activity required by the project.

Question 20

Projects are always carried out under conditions of uncertainty.

Question 21

In project management, it is often necessary to trade-off one objective for another.

Question 22

If the initial investment is a project is $100,000 and the expected annual net profit for the project is $20,000, the payback period is:

A) One fifth of a year
B) 4 years
C) 5 years
D) 10 years
E) insufficient information to determine the payback period

Question 23

Having responsibility for the outcome of a project without the authority of rank or position is common in project management.

Question 24

A project that is selected because it is necessary for continued operations exemplifies a sacred cow.

Question 25

Negotiating the purchase of a new car would typically be characterized as win-win negotiation.

Question 26

In the early years of a project when outflows usually exceed inflows, the NPV of the project for those years will be positive.

Question 27

In project management, superior-subordinate relationships are known and lines of authority are clear.

Question 28

As a rule of thumb, the number of factors included in a scoring model should be at least 10.

Question 29

Projects success is not determined by the portfolio of projects in an organization.

Question 30

When using the weighted scoring model, the categories for each scale must be in equal intervals.

Question 31

Which of the following is not a trend in project management?

A) achieving strategic goals
B) improving project effectiveness
C) quasi projects
D) reductive projects
E) achieving routine goals

Question 32

R&D projects are oriented toward using newly developed technologies or existing technologies in a new manner.

Question 33

Which of the following is not a characteristic of a project?

A) They are unique
B) They are routine
C) They have specific due date
D) They have a specific deliverable
E) They have a purpose

Question 34

"Blue Sky" projects are

A) R & D projects
B) Platform projects
C) Breakthrough projects
D) Derivative projects
E) High risk projects

Question 35

The comparative benefits method is considered a nonnumeric project selection method.

Question 36

Which of the following criteria can be included in scoring models for selecting projects?

A) potential profitability of the project
B) potential impact on the firm's competitive position
C) the organization's ability to market the output of a project
D) All of the above can be included
E) only a and b above

Question 37

Projects with deliverables that are incrementally different from existing offerings are classified as platform projects.

Question 38

The project manager depends on legitimate authority to gain the cooperation of the many departments in the organization that may be asked to supply technology, information, resources and personnel to the project.

Question 39

One limitation of scoring methods is that they can only incorporate quantitative data.

Question 40

Scoring methods were developed to overcome some of the disadvantages of simple financial profitability methods.

Question 41

Ouroboros Construction started the construction of a house for a client. The initial planning of the project took longer than expected. Once plans were finalized, it did not take long to erect the structure, and it was done much before schedule. However, it took a lot of time to give the finishing touches to the house, and it was a long time before the house was completed. The project in this scenario has a(n) _____.

A) J-shaped life cycle
B) X-shaped life cycle
C) S-shaped life cycle
D) L-shaped life cycle
E) O-shaped life cycle

Question 42

Which of the following is not related to the three goals of a project?

A) time
B) data
C) schedule
D) cost
E) performance

Question 43

Omicore Softworks, a software development firm, undertook a project that involved developing a bespoke accounting software for a firm. The project initiated with the project manager spending some time to identify the correct resources. Once this was done, the process of writing the program began. Most of the time was spent on debugging and ensuring that the software worked to the client's specification. The project in this scenario has a(n) _____.

A) J-shaped life cycle
B) X-shaped life cycle
C) S-shaped life cycle
D) L-shaped life cycle
E) O-shaped life cycle

Question 44

A matrix that illustrates the magnitude of both product and process changes resulting from a project is called

A) the aggregate project plan
B) the product-process matrix
C) the aggregate master production schedule
D) the balanced scorecard
E) the R&D project portfolio

Question 45

Which of the following is a numeric project selection method?

A) comparative benefits
B) payback period
C) Q-sort method
D) operating/competitive necessity
E) sacred cow

Question 46

Ultor is a media company that specializes in creating print advertisements for local businesses. Lately, it has been undertaking requests for multimedia projects that are new to it. In this scenario, Ultor is most likely accepting _____.

A) derivative projects
B) R&D projects
C) platform projects
D) breakthrough projects
E) sacred cow projects

Question 47

Briefly highlight the difference between win-win and win-lose negotiation strategies.

Question 48

Restrum Corp. is a company that delivers lunch to working professionals through delivery drivers. It has recently undertaken a project that will allow it to use drones to deliver meals to its customers. Restrum's new project can be categorized as a(n) _____.

A) derivative project
B) R&D project
C) blue-sky project
D) breakthrough project
E) sacred cow project

Question 49

Alchemax Inc. is looking to undertake a project that requires an initial fixed investment of $200,000 and is expected to return a net cash inflow of $50,000 each year. The payback period for this project will be _____ years.

A) 2
B) 7
C) 4
D) 9
E) 5

Question 50

Briefly explain what a project is.

Question 51

Searching for the third alternative is most closely associated with

A) win-win negotiation
B) project planning
C) project budgeting
D) the three goals of a project
E) the weighted scoring model

Question 52

Why is having a negotiation skill in win-win negotiation necessary for a project manager?

Question 53

What are the major trends in project management?

Question 54

Which of the following is an example of win-win negotiation?

A) Buying a car from a second-hand car dealership at the asking price
B) Forcibly using resources allocated to another department
C) Keeping resources that could be used by another team busy in unnecessary tasks
D) Agreeing to share resources for the benefit of all involved in different projects
E) Carrying on an argument over a petty issue that can be easily resolved

Question 55

Rebus Inc., a game development company, had gained critical success with its video game Authority Online a year ago. The game's publisher wanted Rebus to undertake a project to revitalize the game's sales by updating the graphics and releasing it for a new platform. This type of project is an example of a(n) _____.

A) derivative project
B) R&D project
C) platform project
D) breakthrough project
E) sacred cow project

Question 56

To what extent can the three goals of a project be traded-off for one another?

Question 57

The ________________________ attempts to link the organization's projects directly to the goals and strategy of the organization.

A) the product-process matrix
B) the balanced scorecard
C) the action plan
D) project portfolio process
E) the work breakdown structure

Question 58

Projects that begin with a slow start, have quick momentum in the middle, and have a slow finish are said to follow which type of lifecycle?

A) J-shaped lifecycle
B) L-shaped lifecycle
C) an exponential growth lifecycle
D) an S-shaped lifecycle
E) an X-shaped lifecycle

Question 59

Which of the following is an example of lose-lose negotiation?

A) Buying a car from a second-hand car dealership at the asking price
B) Taking time off from a project to help another team
C) Disagreeing with a project idea while not providing an alternative
D) Agreeing to share resources for the benefit of all involved in a project
E) Discussing a problem with all parties concerned and finding a middle ground

Question 60

Which of the following is an example of win-lose negotiation?

A) Buying a car from a second-hand car dealership at the asking price.
B) Discussing a problem with all parties concerned and finding a middle ground
C) Carrying on an argument over a petty issue that can be easily resolved
D) Agreeing to share resources for the benefit of all involved in different projects
E) Disagreeing with a project idea while not providing an alternative

Question 61

Explain what the third alternative is in negotiation.

Question 62

Briefly describe each of the three fundamental goals of a project.

Question 63

Briefly explain the project portfolio process.

Question 64

Briefly explain the advantages of using scoring models to evaluate and select projects rather than using financial models.

Question 65

Briefly describe the two different life cycles of projects.