PMP Exam Set 4 - Questions

Copyright 2013 The Knowledge Academy Ltd - All rights reserved.

Page 1 of 40

INITIATING
1. You are being assigned the role of a project manager for an existing project. While referring
the project documents you find out that a detailed feasibility study has been done for the
project. As per you what is a project feasibility study?
a. Its conducted to decide whether the project should be undertaken or not
b. Its conducted after the project planning phase, to find out whether the project will
be able to meet the objectives or not
c. Its done by the customer for selecting the prospective vendor
d. Its primarily conducted to gather the details that need to be written in the project
charter
2. As an experienced project manager, you know there is an inherent amount of risk with any
project. During what phase of the project life cycle is the highest level of risk and
uncertainty?
a. Planning
b. Executing
c. Initiating
d. Closing

3. A high-technology project has been initiated and will require the coordination of several
different high technology functional areas. What kind of organizational structure would be
appropriate for this project?
a. Strong Matrix
b. Functional
c. Matrix
d. Balanced Matrix

4. When a project is initiated, one of the first deliverables from the project initiation phase is?
a. Project Charter
b. Scope Statement
c. Project Plan
d. Scope Management Plan

5. You as a project manager understand that conflict within a project team can be avoided with
prior planning and by maintaining effective communications between the project manager
and the team. As per you the most important information for the project manager to convey
to the team is:
a. That top management will not be interfering with this project as it usually does with
other projects
b. Clear, unambiguous goals as to where the project is going on
c. The system of rewards that permits recognition of team members through monetary
or non-monetary awards
d. The schedule of paydays and holidays to permit planning for rest and relaxation B

Copyright 2013 The Knowledge Academy Ltd - All rights reserved.

Page 2 of 40

6. You have inherited a project that is in trouble. The team members are spread out in multiple
locations, the schedule is behind by 25%, there is no communication plan in place. The first
issue you must work on is building a cohesive team to get the project back on track. Which
of the following is not a technique that you would use in team development?
a. Collocate the whole team under one roof
b. Provide training to team members in those areas that are suffering the most
c. Establish a reward system that will pay out based on getting the critical path back
within the established time frame
d. Use performance reports to get feedback on individual performance
7. What is the primary role of the project sponsor in a project?
a. Managing the project
b. Using the product of the project
c. Performing work of the project
d. Providing financial resources for the project
8. When a project is initiated, which of the following is a deliverable?
a. Initiation Document
b. Project Charter
c. Project Plan
d. Feasibility Report
9. For a project to be successful, what is the primary requirement?
a. Customer Satisfaction
b. Exceeding Customer Requirements
c. Meeting the cost and schedule estimates
d. Satisfying the requirements of the project sponsor
10. You are working as a Project Manager in an organization where your responsibility is to
coordinate activities, but decisions are primarily made by Management. The organization
structure you are working in is:
a. Weak Matrix
b. Balanced Matrix
c. Functional
d. Strong Matrix
11. The ability to influence the cost of a project is:
a. Greatest at the early stages of the project
b. Greatest at the middle of the project
c. Greatest at the project closure stage
d. Constant throughout the project
12. You are working in the Project Management Office (PMO) of your organization. Your job
responsibility is to:
a. Manage the operational activities in the company
b. Manage human resource and risk management issues for individual projects
Copyright 2013 The Knowledge Academy Ltd - All rights reserved.

Page 3 of 40

c. Provide support functions to project managers in the form of training, providing

software, standardizing policies, etc.
d. Provide subject matter expertise in the functional areas of the project
13. Which of the following is not normally an element of the Project Charter?
a. The formal authorization to apply organizational resources to project activities"
b. Work package descriptions
c. The business need that the project was undertaken to address
d. The product description or a reference to this document
14. Multiple classification models are available to prioritize the key stakeholders to ensure
efficient use of effort to communicate and manage their expectations. One such model is
the Salience Model. Which of the following does this model NOT consider?
a. Power
b. Legitimacy
c. Urgency
d. Influence
15. Which of the following is an input to the 'Identify Stakeholders' process?
a. Stakeholder register
b. Stakeholder strategy
c. Project Charter
d. Procurement documents
16. You are assigned as the Project Manager of a new critical project, but the Project Charter
itself is undergoing multiple changes. Whose primary responsibility is it to decide whether
the changes to the Project Charter are required or not?
a. Project Manager
b. Project Sponsor
c. Project Team
d. Portfolio Manager
17. Which is the most powerful role in a Projectized Organization?
a. The Project Manager
b. The Functional Manager
c. The Team
d. The Resource Manager
18. How is Operational Work different from a Project work?
a. Operational Work is ongoing, where as Project work is one time
b. Operational Work is one time, where as Project Work is ongoing
c. Both of them are same. There is no difference
d. Operational work has unique Product or Service as Output
19. Which of the following is a disadvantage of a Projectized Organization?
a. Efficient Project Organization
Copyright 2013 The Knowledge Academy Ltd - All rights reserved.

Page 4 of 40

b. No home after Project Completion

c. Loyalty to the Project
d. Better Communication
20. The high level Project Schedule constraints are just determined. Which phase is the project
in?
a. Initiating
b. Planning
c. Executing
d. Monitoring and Controlling
21. Which of the following is NOT a characteristic of a Project ?
a. Repeats Every Week
b. Temporary
c. Definite Beginning and End
d. Interrelated Activities
22. A Project Manager is working on constructing a new bridge, but he is not getting enough
project attention. Resources are occupied in doing process related work and project
manager has little authority in proper assignment of resources. What form of organization is
the Project being performed ?
a. Weak Matrix
b. Strong Matrix
c. Functional
d. Projectized
23. How is Project Lifecycle different from a Product Lifecycle ?
a. Project Lifecycle has no methodology
b. Project life cycle is different for different Industry
c. Project Lifecycle sees through many Product lifecycle
d. Project Lifecycle talks about specific Project management Activities

Copyright 2013 The Knowledge Academy Ltd - All rights reserved.

Page 5 of 40

PLANNING
1. Management Contingency Reserve is identified in which process:
e. Determine Budget
f. Estimate Costs
g. Estimate Activity Durations
h. Estimate Activity Resources
2. Under which of the following circumstances would you use a Gantt chart instead of a
network diagram?
a. In reporting to senior management
b. In showing interdependencies between tasks
c. In creating a work breakdown structure
d. In tracking progress or reporting to the team
3. In planning your resources for a new building project you are working with an engineering
firm, a construction management firm and a general contractor. You know that the general
contractor will have to manage several sub-contractors during the project implementation
and that the structural and civil engineers will need to communicate frequently. You must
select the best reporting relationships among the parties. While doing all this which process
you are performing?
a. Human Resource Planning
b. Communication Planning
c. Scope Planning
d. Quality Planning
4. _____________ are meetings held to assess project status or progress.
a. Performance reviews
b. Audit reviews
c. Management reviews
d. Progress informational update meetings
5. As a project manager, you chair a weekly exchange of information meeting among team
leaders. This is an example of communication that is,
a. Internal, formal and horizontal
b. External, informal and vertical
c. Oral, internal and informal
d. Oral, external and formal
6. Which one is not a filter for receivers of communication?
a. Culture
b. Conflict
c. Technology
d. Language
7. Joe, a project manager for his company, is explaining the difference between a Gantt chart
and a Milestone chart. Which of the following is the most accurate description of a Gantt
Chart?
Copyright 2013 The Knowledge Academy Ltd - All rights reserved.
Page 6 of 40

a.
b.
c.
d.

A Gantt chart depicts what was planned against what actually occurred.
A Gantt chart depicts the work in the project against the work that has been completed.
A Gantt chart depicts the work in the project against each resources calendar.
A Gantt chart depicts the work in the project against a calendar.

8. Historical results used in cost estimating may include

a. Project team knowledge, Project files, Commercial cost estimating databases
b. Project team knowledge, Project files, Actual time to complete similar projects
c. Project team knowledge, Commercial cost estimating databases, Actual time to
complete similar projects
d. Project files, Commercial cost estimating databases, Actual time to complete similar
projects
9. Recently, there have been changes in the Government regulations. As a project manager in
an automobile industry, you are concerned that your project will not satisfy the required
quality standards. This could be remedied through better:
a. Quality Assurance
b. Quality Planning
c. Quality Control
d. Modifications to Quality Management Plan
10. In which document will you find the code of account identifier, description of work,
responsible organization, and list of schedule milestones?
a. WBS
b. WBS Dictionary
c. PERT/CPM Charts
d. Staffing management plan
11. Stakeholders, including consultants, customers, sponsors, and professional and technical
associations, are some of the sources of:
a. Enterprise environmental factors
b. Organizational process assets
c. Expert judgment
d. Risk monitoring and control
12. In your organization, all big technical projects go through Initiate, Analyze, Design,
Implement, Test, and Closeout. In this context, a project life cycle:
a. Defines the product life cycle
b. Contains several product life cycles
c. Defines the project phases
d. Has many deliverables that must be completed immediately
13. What is the purpose of using a work breakdown structure numbering system in a WBS?
a. Determine the complexity of the project
b. Determine the level at which individual WBS elements are found
Copyright 2013 The Knowledge Academy Ltd - All rights reserved.
Page 7 of 40

c. Help in automating the WBS using appropriate software

d. Present justification for the project

14. You have been assigned as the Project Manager of the Moonstar project. You and your
collegues are discussing about managing project team members. You advocate active
participation of your team members. Which theory are you referring to?
a. Theory X
b. Theory Y
c. Maslows hierarchy of needs
d. Referent power
15. Which of the following is the most widely used contract type?
a. Cost plus incentive fee contracts
b. Fixed price incentive fee contracts
c. Cost plus award fee contracts
d. Firm fixed price contracts
16. Activity attributes are associated with each schedule activity that can be included in the
activity list. Which of the following process does not require activity attributes as input?
a. Sequence Activities
b. Define Activities
c. Estimate Activity Resources
d. Estimate Activity Durations
17. In your project, you are using cost aggregation, expert judgment, and historical relationships
to establish a cost performance baseline. This is performed during:
a. Control Costs
b. Determine Budget
c. Estimate Costs
d. Create WBS
18. You are in the process of creating the project schedule. Which of the following is NOT a tool
and technique for this process?
a. Resource levelling
b. Critical chain method
c. Schedule compression
d. Schedule data
19. In your project, you have been sub-contracting your IT development work to four
consultancy firms. Which of the following statements about transferring risk to a contractor
is not true?
a. Risk transference nearly always involves payment of a risk premium.
b. Fixed price contract always transfers the risk to the seller.
c. Cost-plus contracts may transfer the cost risks to the buyer.
Copyright 2013 The Knowledge Academy Ltd - All rights reserved.
Page 8 of 40

d. Contracts may be used for the transference of liability for specified risks to another
party.
20. In your project, you are documenting project purchasing decisions, specifying the approach,
and identifying potential sellers. In this context, which tool would you not use?
a. Make-or-buy analysis
b. Bidder conferences
c. Expert judgment
d. Contract types
21. During Risk Response Planning, you identified few new Risks. What should you do?
a. Just document as contingency reserve would take care of it
b. Follow the Risk Management Processes of calculating risk probability and impact
c. Ask for increasing the contingency reserve to take care of these new risks
d. Discuss with your Program Manager
22. Which of the following is not a technique to Plan Communication in the Project?
a. Communication Requirement Analysis
b. Communication Technology
c. Communication Methods
d. Communication Management Plan
23. As a Project Manager, what would you give the highest priority: Quality, Cost or Schedule?
a. It would depend upon the Project
b. Quality is of uttermost important. Cost and Schedule comes later
c. Cost is most important. Everything else comes afterwards
d. Completing the project as per schedule is most important
24. Which of the following statements about "Quality" and "Grade" is incorrect?
a. Grade is a rank given to entities having the same functional use but different
technical characteristics.
b. Low quality product may be of high grade.
c. Low grade product may be of high quality.
d. It is a problem if the product is of high quality and low grade.
25. As a project manager, achieving customer satisfaction is an important objective for you.
Which of the following will help you in attaining your objective?
a. Defining requirements
b. Providing more features than what the customer has asked for
c. Identifying project related risks
d. Providing project justification

Copyright 2013 The Knowledge Academy Ltd - All rights reserved.

Page 9 of 40

26. You are in the Identify Risks process of your project where you determine which risks may
affect the project and document their characteristics. Whom would you want to be a part of
the Identify Risks process?
a. The project manager, project team members, subject matter experts, and customers
b. The risk management team, end users, and risk management experts
c. All relevant stakeholders
d. Positively impacted stakeholders
27. While creating a project schedule, what duration should a milestone have?
a. Zero
b. Duration equal to the phase duration
c. Duration equal to the time required for a particular task to be completed
d. Duration of the complete project till the milestone date
28. In your project, you have identified important risks and planned appropriate responses to
the risks. Some risks - e.g. possibility of natural disasters impacting the project - have been
documented and accepted in your risk management plan. What are the remaining risks
called?
a. Unidentifiable Risks
b. Residual Risks
c. Secondary Risks
d. Accepted Risks
29. A schedule network analysis tool that modifies the project schedule to account for limited
resources is known as,
a. Critical chain method
b. Critical path analysis
c. Critical slippage identification
d. Project schedule analysis
30. A schedule compression technique in which cost and schedule tradeoffs are analyzed to
determine how to obtain the greatest amount of compression for the least incremental cost
is,
a. Crashing
b. Fast Tracking
c. Compression
d. Critical compression
31. The Cost management plan can establish all of the following EXCEPT,
a. Level of accuracy
b. Units of measure
c. Control threshold
d. Cost Reports

Copyright 2013 The Knowledge Academy Ltd - All rights reserved.

Page 10 of 40

32. Which of the following is an INPUT to the Determine Budget process?

a. Resource Calendars
b. Expert Judgment
c. Reserve analysis
d. Project funding requirements
33. A Quality Planning tool that is used to visually identify logical groupings based on natural
relationships is,
a. Brainstorming
b. Affinity diagrams
c. Force field analysis
d. Nominal group techniques
34. Hierarchical charts are used to show positions and relationships in a graphic, top down
format. Which of the following is an example of this chart?
a. Work Breakdown structure
b. Work hierarchical structure
c. Scope breakdown structure
d. Scope decomposition
35. You are in the process of determining the types of contracts to be used, need for
standardized procurement documents, and ways of managing multiple providers. You can
get the guidance for doing these activities through:
a. Project plan
b. Procurement document
c. Procurement management plan
d. Proposals
36. You are the project manager with seven team members. One more member will be joining
the team after a week. What will be the number of communication channels once the new
member joins your team?
a. 28
b. 21
c. 18
d. 36
37. A communication method that is sent to specific recipients who need to know the
information is known as,
a. Pull communication
b. Push communication
c. Interactive communication
d. Information communication

Copyright 2013 The Knowledge Academy Ltd - All rights reserved.

Page 11 of 40

38. Identify Risks is the process of determining which risks may affect the project and
documenting their characteristics. The tool and technique that may NOT be required for
identifying risks is,
a. Checklist analysis
b. Diagramming techniques
c. Expert Judgment
d. Reserve Analysis
39. Tom is the Project Manager for a mid-sized project in the Automobile industry. He is busy
preparing an hierarchically organized depiction of the identified project risks that are
arranged by risk category and subcategory, which assists in identifying the various areas and
causes of potential risks. This hierarchical structure is known as,
a. Work Breakdown structure (WBS)
b. Resource Breakdown Structure (RBS)
c. Risk Breakdown Structure (RBS)
d. Risk Category Structure (RCS)
40. Ben is currently performing the process Identify Risks. He intends to use an information
gathering technique that identifies the problem, discovers the underlying causes that lead to
it and develops the preventive action. This technique is known as,
a. Interviewing
b. Delphi Technique
c. Root Cause analysis
d. Brainstorming
41. Expected monetary value (EMV) is a statistical concept that calculates the average outcome
when the future includes scenarios that may or may not happen. EMV for a project is
calculated by,
a. multiplying the value of each possible outcome by its probability of occurrence and
adding the products together.
b. multiplying the value of each possible probability by negative outcome
c. multiplying the value of each possible outcome by its probability of occurrence
d. multiplying the value of each possible probability by positive outcome
42. In your project, the risk calculations show that there is a risk of overrunning the project
scope and schedule targets to levels that are beyond the threshold limits determined in the
project. To bring the level of risk to a level acceptable to your organization, you should:
a. Consider using contingency reserves
b. Decrease the project scope and increase the project schedule
c. Talk with your sponsor about canceling the project
d. Do additional risk response planning

Copyright 2013 The Knowledge Academy Ltd - All rights reserved.

Page 12 of 40

Copyright 2013 The Knowledge Academy Ltd - All rights reserved.

Page 13 of 40

EXECUTION
1. Motivating your team members is important for the success of the project. The HR manager
states that employees are motivated by self-esteem, recognition, and self-actualization. To which
theory is the HR manager referring?
a. Theory Y
b. Learning curve theory
c. Herzbergs theory
d. Maslows theory
2. The customer was not satisfied with the finished product`s quality. The cost of poor quality can
also be referred to as:
a. Cost of conformance
b. Failure cost
c. Rework cost
d. Opportunity cost
3. Which of the following describes an input to the direct and manage project execution process
that consists of documented, authorized directions required to bring expected future project
performance into conformance with project plan?
a. Approved change requests
b. Implemented preventive actions
c. Implemented change requests
d. Approved corrective actions
4. You are the project manager for the QCM project. During project execution, a project team
member informs you that based on his observations, the project cannot meet the quality
standards set for it. You call for a meeting with the stakeholders' concerned to analyze the
situation. Which process are you currently involved in?
a. Quality analysis
b. Quality control
c. Quality assurance
d. Quality planning
5. What are the stages of team development?
a. Forming, Storming, Norming, Performing and Adjourning
b. Enthusiasm, Hope, Panic, Solution
c. Assignment, Kickoff, Training, Communicating
d. Direction, Motivation, Cooperation, Collaboration
6. Which leadership style is suited for optimizing team performance in projects?
a. Laissez-Faire
b. Democratic
c. Autocratic
d. None of the above
Copyright 2013 The Knowledge Academy Ltd - All rights reserved.

Page 14 of 40

7. Recognitions and Rewards are the technique that project manager can use to develop the team.
Which one is not true for Recognition and Reward System:
a. There should be a clear criteria for reward and a system should be in place to use these
criterions
b. Reward criterion should be so tough that the team members should make their best efforts
and keep on trying for it
c. Recognition and reward should be designed keeping in mind the culture of the organization
d. Recognition and reward should be based on activities and performance that is under the
control of the rewarded
8.

____________ makes the needed information available to project stakeholders in a timely

manner.
a. Executive management updates
b. Project status reports
c. Information distribution
d. Total Quality Management

9. Project information may be distributed using a variety of methods including project meetings,
hard copy document distribution, shared access to networked electronic databases, fax,
electronic mail, voice mail and video conferencing. These are known as a. Project controls
b. Project information management systems (PIMS)
c. Informational distribution methods
d. Project distribution systems
10. Information can be shared by team members through a variety of methods including manual
filing systems, electronic text databases, project management software, and systems which allow
access to technical documentation such as engineering drawings. This system is called as:
a. Information retrieval systems
b. Information distribution methods
c. Project records
d. Project management software
11. The tools and techniques for performance reporting are:
a. Cost Reporting Systems
b. Information Presentation Tools
c. Time Reporting Systems
d. All of the above
12. In a situation where the deadline is critical and tasks are at risk of slipping, which conflict
resolution style should be used:
a. smoothing
b. forcing
Copyright 2013 The Knowledge Academy Ltd - All rights reserved.

Page 15 of 40

c. problem solving
d. compromising
13. Conditions that lead to conflict include all of the following except:
a. Meeting
b. Resources
c. Cost
d. Technical issues
14. The project managers team building responsibilities include,
a. Expect team members to communicate effectively without your involvement
b. Initiate relationships
c. Hold effective meetings
d. B & C
15. To ensure effective meetings, the project manager should:
a. Set an agenda
b. Have a clear purpose for the meeting
c. Encourage participation
d. All of the above
16. Status review meetings are:
a. Held to notify stakeholders of critical information
b. Regularly scheduled meetings held to exchange information about the project
c. Held to update departmental staff of project status
d. None of the above
17. Among the following, what is not included in the Configuration Management System?
a. Processes for submitting the proposed changes
b. Processes for submitting the proposed changes
c. Configure the project charter
d. Defining approval levels for authorizing changes
18. Which of the following in NOT an output of Information Distribution?
a. Performance reports
b. Project records
c. Project reports
d. Project presentations
19. By active listening, what does a project team member do?
a. Impresses the person who is speaking
b. Uses an excessive amount of non-verbal signals
c. Guesses what other team members say
d. None of the above
Copyright 2013 The Knowledge Academy Ltd - All rights reserved.

Page 16 of 40

20. You have recently taken over a project from another project manager, who left the company. You
realize that the project is behind schedule and over budget, but the senior management is
unaware of this fact. In this context, what should you do FIRST?
a. Do not continue to manage the project.
b. Update the management with the status of the project.
c. Bring the project on schedule and then inform the management about the status of the
project.
d. Do crashing and fast-tracking of the project.
21. Frequent heated discussions with your colleague over an issue are creating a hostile
environment. To ease this situation, you agree with your colleague`s point of view. The conflict
resolution mode that you are using is:
a. Problem solving
b. Withdrawal
c. Forcing
d. Confrontation
22. As a project manager, you use work authorization system to assign and allocate work to your
team members. In this context, the primary purpose of the work authorization system is to:
a. Prevent team members from starting the work without your permission
b. Prevent scope creep
c. Prevent unnecessary changes to project scope
d. Clarify and initiate the work for each work package
23. Your project is facing attrition of project resources, and you would like to document processes
carefully to ensure business continuity. Certain costs have to be incurred for this purpose. These
costs are known as:
a. Costs of non-conformance
b. Appraisal costs
c. Failure costs
d. Prevention costs
24. In your project, you are performing several actions to execute the project management plan and
to complete the work defined in the project scope statement. You will be involved in:
a. Taking corrective or preventive action to control the project performance
b. Settling or closing any contract agreement established for the project
c. Creating a document that will formally authorize the project
d. Collecting work performance information about the completion status of the
deliverables and what has been accomplished
25. In which Process Group will work defined be completed and all the specifications of your project
be satisfied?
a. Planning Process Group
b. Executing Process Group
c. Monitoring and Controlling Process Group
Copyright 2013 The Knowledge Academy Ltd - All rights reserved.
Page 17 of 40

d. Closing Process Group

26. A risk that remains after risk responses have been implemented is referred to as:
a. Secondary risk
b. Residual risk
c. Fallback Plan
d. Accepted risk
27. You just started a new Project as a Project manager, when a couple of stakeholders, with whom
you have worked in the past, come to you raising concerns about the utility of the new Project
Management Package being used and the way project changes would be logged into the new
Software. As a Project Manager what should you do?
a. Supply with Training Material on new Project Management Software
b. Inform the Project Management Office about stakeholder's concern
c. Since they are friends, conduct informal training session
d. Assure stakeholders that he will keep them engaged in the Project and new Software
will not way impact their functioning
28. John was assigned to a new software development project. Once after a change control board
meeting, the project manager asks John to complete the paperwork required to make the
changes. This is an example of?
a. Project Expeditor Position
b. Program Management Position
c. Change control board Member
d. Project Co-ordinator Position
29. The Management has asked you to get the Project completed two weeks ahead of schedule.
What is the best thing for you to do?
a. Consult the Project Sponsor
b. Crash
c. Fast Track
d. Advise the management of the Impact of the Change
30. Ashley is the Project Manager of a new Software development project. He finds a major issue
with the Project requirement management process and can find a trend in requirement related
defects. He is using Ishikawa diagram to come up with the root cause of the trend, so that he can
make recommendation for the process change to avoid problems in future. What process is he
doing ?
a. Risk Identification
b. Perform Quality Assurance
c. Perform Quality Control
d. Quality Planning

Copyright 2013 The Knowledge Academy Ltd - All rights reserved.

Page 18 of 40

31. As a Project Manager, you have a team, spread across five countries, working for you. What is
the best communication method that you should follow?
a. Informal Written
b. Informal Verbal
c. Formal Written
d. Formal Verbal
32. You were asked to sit as an observer in another project's status review meeting. You observed
that everyone present in the meeting is talking at the same time about different issues. The
whole meeting is in a chaos. What do you think was not done?
a. Meeting Agenda and Ground rules were not set
b. The right people were not invited for the meeting
c. The Project Manager was ineffective
d. There were cultural issues with people with different backgrounds attending the
meeting
33. You are executing a project for an overseas customer. There are multiple stakeholders at the
customer's end, however your point of contact has not introduced you to one of the managers
who is supposed to run a function at the customer's end and may have some requirement for
your project. If you do address his requirement, he might ask for a change in the Project and
there is all the possibility that the change control board will approve the change. What should
you do?
a. Nothing, as your customer contact point has not formally introduced you to this stakeholder
b. Call your boss for guidance on this matter
c. Schedule a meeting with this stakeholder to understand his requirement
d. Add this issue as potential Project Risk and address it at appropriate time
34. You are executing a Project when the customer asks for a change that's going to increase the
schedule risk. What should you do first?
a. Go ahead and accept the change
b. Inform the customer that the project would get delayed
c. Analyze the impact of the change with your team
d. Inform your manager about customer request
35. You are in the process of selecting Seller for a part of your project that needs to be
subcontracted. The project is being performed under tight budget and your Senior management
has given strict instruction to select the lowest bidder. You have narrowed down to two bids, the
lowest bidder was the one with whom you don't have good experience of working in the past,
where as the other bidder is very well known for treating their customers with lot of goodies.
Which one shall you award the contract ?
a. Select the other bidder as you will have a nice time working with them
b. Disqualify the lowest bidder by citing some clause
c. Ask the other bidder to match the lowest bidder price
d. The lowest bidder
Copyright 2013 The Knowledge Academy Ltd - All rights reserved.

Page 19 of 40

36. You were competing with another colleague of yours to become the project manager of a
prestigious new project in the organization, but unfortunately your colleague gets that
assignment. Later he comes to you for some documentation. What would you do?
a. Don't give him the document. Create problem for him.
b. Give him the document and also co-operate him by all possible means
c. Just avoid him and let him keep coming to you
d. Tell him that the document is not all useful and you lost have it
37. You are working on a large Project and you have to identify various subcontractors to do certain
parts of the project. One of your potential subcontractors is not from the same city and you have
called him for contract term negotiations at your office the next day morning. However, the
evening before the meeting, you got to know that the part of work that needs to be
subcontracted, stands cancelled. What should you do in such a scenario?
a. Cancel the meeting
b. Meet the Subcontractor as you have any way called him
c. Change face to face meeting to Telephonic Meeting
d. Ask your Subordinate to meet the Subcontractor
38. You have to hire many new team members for a new project. You create a RFP and request HR
staffing companies to respond to it, so that you can select the right HR partner for your project.
Your wife also runs a HR staffing Organization and wants to respond to this RFP. What should you
do?
a. Ask your wife not to respond to this RFP as it may create a possible conflict of interest
b. Suggest the rate that your wife should put in the proposal, so that she wins the contract
c. Update your selection board about your wife also being one of the bidders and request them
to treat her proposal objectively like any other proposal
d. Leave your position as a Project Manager
39. One of your subcontractor, with whom you have become quite friendly explains how he faked his
PMI certificate and got into the Project team. As a certified Project Manager what should you do?
a. Report the matter to PMI
b. Do nothing, as he is now a friend
c. Inform your manager about him
d. Advise him not to do this in future
40. Which of the following statements on time and material contracts is accurate?
a. These types of contracts resemble cost-reimbursable type arrangements, because they are
close ended.
b. T&M contracts cannot grow in value like a cost-reimbursable contract.
c. The full value of the agreement is defined at the time of contract award.
d. Unit rates can be fixed by the buyer and seller when both parties agree on the values for
specific resource categories.
Copyright 2013 The Knowledge Academy Ltd - All rights reserved.

Page 20 of 40

41. Which tool and technique from Acquire Project Team process involves selecting project team
members in advance?
a. Pre- assignment
b. Negotiation
c. Acquisition
d. Virtual Teams
42. In your project, you establish clear expectations regarding acceptable behavior by project team
members. You believe that early commitment to clear guidelines will decrease misunderstanding
and increase productivity. These expectations and guidelines are also known as:
a. Team-building activities
b. Ground rules
c. Interpersonal skills
d. Rules of conduct
43. You are in the Executing process group and are implementing the project schedule. You are
making use of the calendars that identify the times when the project team members can
participate in the team development activities. What are these calendars known as?
a. Resource calendar
b. Project calendar
c. Time calendar
d. People calendar
44. Which of the following is not related to the Direct and Manage Project Execution process?
a. Manage sellers and suppliers
b. Create project deliverables
c. Implement the planned methods and standards
d. Change control meetings
45. You are a project manager in XYZ Company, which has a projectized organizational structure. In
this context, which of the following statements is incorrect?
a. Team members are often co-located.
b. There is a "home" for project team members after a project is completed.
c. You have a great deal of authority and independence.
d. Organizational units (or departments) either report directly to you or provide support
services to the various projects.
46. In your previous project, the project manager gave a lot of autonomy to the team members,
which led to anarchy. The management style followed by the project manager was:
a. Directing
b. Laissez faire
c. Delegating
d. Democratic

Copyright 2013 The Knowledge Academy Ltd - All rights reserved.

Page 21 of 40

47. You are managing a small project with five team members working part-time. At the beginning of
every week, you orally allocate work to all the team members. This is an example of:
a. Work Authorization System
b. Improper Planning because team members do not know in advance what needs to be
done at what time
c. Project time management plan
d. Project flexible time management plan

48. You have joined in as a project manager for a project whose previous manager has left the
organization. The team informs you that certain features are being added to the deliverable
which were not asked for by the customer, to earn customer appreciation. In this situation:
a. You are concerned, because the project team is gold-plating
b. You are happy, because the project will `exceed customer expectations`
c. You are worried that this is going to increase the project size
d. You are undecided about the increase in the quality metrics of the project

49. You are the project manager in a pharmaceutical company. You are constantly involved in
managing stakeholders` expectations to satisfy their needs and resolve issues. In this context,
which of the following is not a relevant output?
a. Organization process assets updates
b. Change requests
c. Project management plan updates
d. Communications requirements analysis
50. The method of examining a work or product to determine whether it conforms to documented
standards is called?
a. Inspection
b. Verification
c. Audit
d. Statistical Check
51. As a project manager in matrix project environment, you have limited control over team member
selection. Which of the following tools and techniques would NOT be helpful for this purpose?
a. Pre assignment
b. Acquisition
c. Virtual Teams
d. Interpersonal skills
52. A project manager in an e-learning project is using free downloadable tutorials via internet to
reach out to large audiences . This communication method is called?
a. Interactive Communication
b. Pull Communication
Copyright 2013 The Knowledge Academy Ltd - All rights reserved.
Page 22 of 40

c. Push Communication
d. Personal communication

Copyright 2013 The Knowledge Academy Ltd - All rights reserved.

Page 23 of 40

MONITORING AND CONTROLLING

1. Of the following reports, which one will not be suitable for the top management?
a.
b.
c.
d.

Milestone report
Bar Charts
Gantt Chart
Control chart

2. In the Control Schedule process, changes to project schedule can result in change requests
to:
a. Schedule baseline
b. Components of project plan
c. Activity attributes
d. Schedule baseline and/or components of project plan
3. Currently, you are in the Report Performance process and are presenting the results of the
analysis as a comparison to the performance measurement baseline. Some common formats
for performance reports that you could use are:
a. S-curves, histograms, Pareto diagrams
b. S-curves, responsibility assignment matrices ,histograms
c. Bar charts, S-curves, histograms
d. Bar charts, control charts, histograms
4. Calculate the estimate at completion (EAC) for your project based on the following data?
BAC = $ 300,000, AC = $ 100,000, EV = $ 150,000, CPI = 1.2, ETC = $ 120,000
e. $ 250,000
f. $ 220,000
g. $ 280,000
h. $ 300,000
5. Currently in your project, you are determining the cause of variance relative to the scope
baseline and deciding whether corrective action is required. You should use:
a. Configuration management system
b. Variance analysis
c. Re-planning
d. Earned value spreadsheets
6. During monitor and control, you use the term project scope creep. What does the term refer
to?
a. Uncontrolled changes
b. Controlled changes
c. Manageable changes
d. Unmanageable changes
7. You are a project manager and have just discovered a risk in your project that requires an
immediate corrective action. During which Project Risk Management Process is this action
performed?
a. Plan Risk Management
Copyright 2013 The Knowledge Academy Ltd - All rights reserved.

Page 24 of 40

b. Identify Risks
c. Perform Qualitative Risk Analysis
d. Monitor and Control Risks
8. Your projects quality process did not meet the four sigma requirements desired by your
customer. Hence, some of your products were rejected and there is a possibility that you
would not receive repeat business from the customer. From a quality perspective, the costs
associated with the rejected products can also be categorized as:
a. Cost of conformance
b. Customer retention costs
c. Failure costs
d. Performance costs
9. Find the to-complete performance index (TCPI) for your project based on the given data:
Budget at completion of the project = 700,000
Cost variance of the project = 25,000
Earned value of the project = 200,000
Estimate to Complete has now been revised to 425,000
a. 0.9
b. 1.176
c. 1.5
d. 1.5
10. Ben is a project manager on a software project. About halfway through development, his
team found that they had not estimated enough time for some of the technical work they
needed to do. He requested that the new work be added to the scope statement and that
the time to do the work be added to the schedule. The change control board approved his
change. Whats his next step?
a. Update the scope and schedule baselines to reflect the approved change
b. Start doing the work
c. Gather performance metrics on the teams work so far
d. Perform Quality Assurance
11. You are the Project Manager of a new Business Center Construction Project. The Project
Sponsor wants to know the cost forecast of the Project at completion. The Project has a total
budget of $100,000 and CPI of .90. The Project has spent $40,000 so far. How much more
money is planned to be spent on the Project?
a. $68,230
b. $43,110
c. $81,100
d. $71,111
12. Which of the following represents the Estimated Value of the work actually accomplished?
a. PV
b. EV
c. AC
d. CV
13. There was a pre-scheduled project status review meet and one of your team lead sends his
report just an hour before. You find too many issues with the report. What would you do?
a. Let him present the report and thrash him in front of everyone to teach him a lesson
Copyright 2013 The Knowledge Academy Ltd - All rights reserved.

Page 25 of 40

b. Cancel the meeting and prepare the report yourself

c. Postpone the meeting and ask him to fix the issues
d. Do nothing..just wait and see what happens.
14. You are managing a Project as a Project Manager, when the customer comes to you and says
that he has run out of money and could not afford to pay for this Project. What would you
do in such a case?
a. Remove some resources, so that Project gets delayed and customer gets more time to
pay
b. Stop all work immediately
c. Enter Administrative Closure
d. Ask Management for guidance
15. You have supplied software code to one of the manufacturer and the manufacturer has paid
for your code as well. However, one of your tester informs you that there is a potential
problem with the code, which was not identified at the time of supplying the software, but
can be a potential problem to the manufacturer. Also the tester informs that the chances of
this problem occurring is very dim. What should be done in such a case?
a. Inform Manufacturer about the potential problem and supply him the new version of
the software
b. Wait for Manufacturer to report the problem and charge him extra for solving the
problem
c. Ask your management for guidance as it looks bad to inform about potential problem
which was not detected
d. Reward the tester for doing a great Job
16. You are managing the Installation of a new software Product. The Product has to be installed
at 1000'ss of client systems one by one. While your installation team does the installation,
the quality team does process metric measurements and adds the data points to a control
chart. When you examine the control chart, you discover that the process is Out of Control
and some immediate action needs to be taken. What is noticed on the Control Chart?
a. Lots of variation in the measurement.
b. There were two points which were more than 100% away from the mean.
c. Atleast seven consecutive measurements were below or above the mean
d. All the measurement were within the upper and lower control limits
17. You are the Project Manager of a Project and during earned value analysis, you found out
that SPI is 1.3 and CPI is 0.85. What can be said about the Project status?
a. The Project is behind the schedule and under budget
b. The Project is ahead of the schedule and under budget
c. The Project is behind theschedule and under budget
d. The Project is ahead of the schedule and over its budget
18. Which of the following is a defect?
a. A mistake made by a team member on the job
b. A change that the team needs to make in how they do the work
c. A project management plan that does not meet its requirements
d. A change request thats been rejected by the change control board
Copyright 2013 The Knowledge Academy Ltd - All rights reserved.

Page 26 of 40

19. Which of the following is NOT an output of Monitor & Control Project Work?
a. Project management plan updates
b. Change request status updates
c. Change requests
d. Project document updates
20. Which of the following is NOT a tool or technique of Monitor and Control Risks?
a. Bringing in an outside party to review your risk response strategies
b. Revisiting your risk register to review and reassess risks
c. Using Earned Value analysis to find variances that point to potential project problems
d. Gathering information about how the work is being performed
21. Which of the following tools is used to document the lessons that were learned when the
contract was administered?
a. Quality audit
b. Buyer-conducted performance review
c. Contract review
d. Procurement audit
22. A change in your project schedule has resulted in increased cost and risk. It has also
impacted your resource plan. To coordinate changes across the entire project, you will need
to rely on which of the following:
a. Change control system
b. Perform Integrated Change Control
c. Change requests
d. Changes to project plan baselines
23. In a normal distribution, standard deviation refers to:
a. Distance of measurement from the mean
b. Distance of measurement from the most likely value
c. Distance of measurement from the middle most value
d. A tool that is used in qualitative risk analysis
24. You are the project manager in a company. You have to prepare a process improvement
plan. Which of the following would you not consider for this purpose?
a. Quality metrics
b. Targets for improved performance
c. Process boundaries and process metrics
d. Process configuration
25. In your construction project, the CPI is 0.85 and SPI is 1.25. What could be the possible
reason?
a. A critical resource went on sick leave for a long period of time, which had not been
anticipated earlier.
b. The cost of raw materials required for construction increased by 10%. - You had
anticipated a cost increase of 12% in your project plans.
c. In anticipation of delays, the project was crashed to decrease the duration.
d. There was four days waiting time in the curing of concrete, and work could not be done
during that time.

Copyright 2013 The Knowledge Academy Ltd - All rights reserved.

Page 27 of 40

26. Even after carefully performing risk management for the project, you realize that possibility
of new risks occurring in the future still exists. You will be able to handle such risks if you
perform:
a. Plan Risk Management
b. Identify Risks
c. Monitor and Control Risks
d. Plan Risk Responses
27. Which of the following tools is not used in Administer Procurements process?
a. Payment systems
b. Performance reporting
c. Inspections and audits
d. Procurement audits
28. Project performance must be monitored and measured regularly to identify variances from
the plan. Which of the following processes does not belong to the Monitoring and
Controlling Process Group?
a. Verify Scope
b. Monitor and Control Risks
c. Report Performance
d. Perform Quality Assurance
29. A project manager is discussing the observed variations between planned and actual values
of the defects with his quality engineer. He realizes that he has forgotten to identify one of
the important metric to analyze defects. Which process group is the project manager in If he
evaluates the current result for the metric and whether or not it requires corrective actions?
a. Initiating
b. Planning
c. Executing
d. Monitoring and Controlling
30. A project manager is using S curve to reflect the various expenditures of resources over the
projected time of the project. This S curve indicates that
a. Bulk of the project cost is spent during execution phase
b. The project follows linear expenditure over all the phases
c. The project resource cost would be directly proportional to the size of the project
d. The project has high risk of attrition during execution phase
31. The Project Manager is currently reviewing the Issue Register as part of his Execution
activity. Which of the following should the project manager perform as part of his
Monitoring and Controlling process group activity?
a. Assess the corrective actions on the issue register
b. Determine the next steps for unresolved issues
c. Use appropriate tools and techniques in order to minimize the impact on project
schedule, cost and resources
d. All of the above
32. You are assigned as a project manager to a project in the execution stage. Current schedule
and performance indices for the project SPI and CPI are 1.2 and 1.1 and project performance
is well within baseline. The defects found during internal testing for the last deliverable were
Copyright 2013 The Knowledge Academy Ltd - All rights reserved.

Page 28 of 40

well below organization limits. However the customer doesn't seem to be happy with the
project progress. What should be the FIRST thing project manager should do?
a. Start managing project as you gain more insight into day to day responsibilities
b. Meet with the project team to understand open issues in the project
c. Conduct a meeting with customer to understand his concern over project progress
d. Improve project schedule and cost control measure so that SPI and CPI reaches above
1.5
33. A project manager working in an iterative model of product development life cycle expects
many changes in the course of the project. Thus he wants to establish a robust configuration
management and also make his team aware of the process. Which of the following
statement is NOT true about configuration management?
a. The purpose of configuration management is to maintain integrity of work product
b. Configuration management includes configuration audits, configuration control
,configuration status accounting and configuration identification
c. Configuration management focuses on establishing and maintaining consistency of a
product's requirements
d. Configuration management involves measuring project performance with baselines and
taking corrective action when necessary
34. A project manager has made a major release in the project. The customer comes back a
week after the release saying that he is not entirely satisfied with the deliverable. What
should the project manager do NEXT?
a. Continue with the next deliverable as needs to finish the project on time
b. Talk to the senior manager to discuss the customer concern and resolution
c. Ensure that next deliverables has enough features which customer would like to have to
exceed his expectations
d. Do a scope verification of this deliverable to check if it satisfies project objectives
35. A project manager is proactively managing the change through scope control process. Which
of the following should he be MOST worried about?
a. Value Added Changes
b. Errors and Omissions
c. Risk Response
d. Verbal communication from key stakeholders
36. A project activity has following values for the earliest and latest it can start and earliest and
latest it can be completed. An activity'has Late Start (LS) is 5/day and Late Finish is (LF)
10/day. Similarly Early Start (ES) is 3/day and Early finish (EF) is 8/day. What is the float of
this activity A?
a. 0 days
b. -2 days
c. 4 days
d. 2 days

Copyright 2013 The Knowledge Academy Ltd - All rights reserved.

Page 29 of 40

37. As a project manager and member of PMO(Project Management Office), you want to
present a snapshot of status of various projects undergoing in the organization to senior
management. Which of the following chart would be most suitable for the purpose?
a. Milestone chart
b. Gantt Chart
c. Precedence diagram
d. Control chart
38. As a project manager, you have been asked by the customer to give an overview of project
status using milestone charts. Which of the following statement is INCORRECT about
Milestone charts?
a. Milestones have zero duration
b. Milestone charts are similar to bar charts but only show major events
c. Milestone charts can be used to capture the status of project schedule
d. Milestone is used to define phase of a project
39. Project Performance Reviews using Earned Value Management would typically incorporate
information from all the following EXCEPT?
a. Variance Analysis
b. Cost Benefit Analysis
c. Trend Analysis
d. Earned Value Technique
40. As a project manager you realize that the initial budget cost, Budget at Completion (BAC) for
your project is no longer viable. You need to develop a new Estimate At Completion (EAC)
forecast assuming current variances would continue in the future. Which of the following
formula should you use for calculating EAC?</p> <p>Here AC is the Actual Cost , EV is the
Earned Value, PV is the Planned value .
a. EAC = AC + ETC
b. EAC= AC+ (BAC - EV)
c. EAC = EV/PV
d. EAC = BAC/ cumulative CPI
41. A project manager wants to measure project performance against project baseline. Which of
the following technique would be MOST helpful?
a. Variance Analysis
b. Earned Value Technique.
c. Work Performance Measurements
d. Reserve Analysis
42. A project team with CPI of 0.78 is looking for options to reduce cost. Which of the following
should be the BEST option to choose in following scenarios?
a. Reduce a test cycle, in the System Testing phase
b. Reduce scope by cutting down non- essential features
c. Add more resources to expedite the schedule
d. Revisit estimates and eliminate risks; re- estimate
43. You are a project manager evaluating a decision to buy a licensed software tool. This tool
has 50% chances of being successfully implemented in your company and would cost $ 50,
000. However there are 40% chances that your company would be able to save $150,000
due to improved productivity. What is the Expected Monetary Value for this decision?
Copyright 2013 The Knowledge Academy Ltd - All rights reserved.

Page 30 of 40

a.
b.
c.
d.

+$35,000
- $ 35, 000
+$ 21,000
-$ 21,000

44. Your project has the following information based on Earned Value Analysis, its Earned Value
(EV) is $1000, Actual Cost(AC) is $ 850 and Planned Value(PV) is $1050. Which of the
following is TRUE about your project ?
a. Your project is over budget and behind schedule
b. Your project is under budget and behind schedule
c. Your project is over budget and ahead of schedule
d. Your project is under budget and ahead of schedule

Copyright 2013 The Knowledge Academy Ltd - All rights reserved.

Page 31 of 40

CLOSING
1. A company is making an effort to improve its project performance and create historical
records of past projects. What is the best way to accomplish this?
a. Create project management plans
b. Create lessons learned
c. Create network diagrams
d. Create status reports
2. During the Close Procurements process, you should attend to all the following EXCEPT:
a. Perform a structured review of processes from plan purchases and acquisitions through
contract closure.
b. Perform procurement performance reviews to determine seller`s progress to deliver
project scope and quality, within cost and on schedule, as compared to the contract.
c. Identify successes and failures that warrant recognition to prepare or administer
procurement contracts in the future.
d. Use procurement audits as a technique.
3. Who should be in charge of the project during the Close Project process?
b. Sponsor
c. Project manager
d. Customer
e. Project closing functional expert
4. When do you mark a project as complete?
a. All project requirements mentioned in the contract are completed and the Formal
acceptance is received from the customer
b. The Project is completed and all the payments are received from the customer
c. Administrative closure is done and lesson learnt documented
d. Final payment received from the customer
5. In your project, you would like to conduct a lessons learned session to identify project
successes and failures, as well as make recommendations to improve future project
performance. This is done during:
a. Choice 1 Project closure
b. Project initiation
c. Project life cycle
d. Project execution and project closure
6. A project manager is in the final closure phase of the project . Which of the following should
he do FIRST as part of project closure activity?
a. Get formal sign off from the customer to confirm customer acceptance of final
deliverable
b. Measure customer satisfaction as a key performance indicator of project's success
c. Hand off completed project deliverables to operations and management
d. Measure project scope against project management plan
7. You have recently made the final delivery of your software project to the customer. Before
making the release you ensured that thorough testing was done and verified project scope.
However after a week of delivery customer shows his dissatisfaction on the release and says
Copyright 2013 The Knowledge Academy Ltd - All rights reserved.

Page 32 of 40

product doesn't support critical functionality. He asks you to add this feature immediately.
What should you do?
a. Understand the customer requirement and estimate the additional time and resource
required to complete it, Communicate the same to the customer
b. Discuss the customer feedback with the senior management and seek their advice on
the matter
c. Analyze the in-house process of testing and scope verification to determine the root
cause of the problem
d. Ignore the customer and proceed with project closure activity
8. During procurement closure, a procurement audit includes all of the following EXCEPT:
a. Reviewing the contract terms to ensure that they have all been met
b. Identifying successes and failures that should be recognized
c. Documenting lessons learned
d. Using the payment system to process consideration as per the terms of the contract
9. You need to determine when to release resources from your project. Which part of the
staffing management plan will be most useful for this?
a. Resource Histogram
b. Safety procedures
c. Recognition and rewards
d. Training needs
10. Which of the following is the correct order of actions that you take during the Closing
processes?
a. Get formal acceptance, release the team, write lessons learned, close the contract
b. Write lessons learned, release the team, get formal acceptance, close the contract
c. Get formal acceptance, write lessons learned, release the team, close the contract
d. Get formal acceptance, close the contract, write lessons learned, release the team
11. Your project just completed, and one of your subcontractors has sent you the tickets for the
next IPL cricket match to thank you for your business. What is the BEST way to respond?
a. Thank the subcontractor, but do not give him preference in the next RFP
b. Thank the subcontractor, but politely refuse the gift
c. Ask for tickets for the entire team, so that it is fair to everyone
d. Report the subcontractor to PMI
12. A project manager is reporting the final status of the closed contract to the stakeholders.
Which form of communication is appropriate?
a. Informal Written
b. Informal Verbal
c. Formal Written
d. Formal Verbal
13. Which of the following is NOT an input of the Close Project or Phase process?
a. Project Management Plan
b. Project Management Methodology
c. Accepted Deliverables
d. Organizational Process Assets
Copyright 2013 The Knowledge Academy Ltd - All rights reserved.

Page 33 of 40

14. Your project team has completed the project work. All of the following must be done before
the project can be closed EXCEPT:
a. Ensure that the schedule baseline has been updated
b. Get formal acceptance of the deliverables from the customer
c. Make sure the scope of the project was completed
d. Verify that the product acceptance criteria have been met

Copyright 2013 The Knowledge Academy Ltd - All rights reserved.

Page 34 of 40

Copyright 2013 The Knowledge Academy Ltd - All rights reserved.

Page 35 of 40

DUMMY
1.
a.
b.
c.
d.

In your project, if the benefit cost ratio is greater than 1, it means that
The ratio of profits to cost is greater than 1.
The ratio of revenue to cost is greater than 1.
You should select this project from all other competing alternatives.
You should not select this project from all other competing alternatives.

2. You are a retail company which routinely buys goods from foreign countries. Since currency
fluctuation is an important risk, you keep all other factors constant and try to find out how
much your project will be impacted if the currency rate fluctuates. This helps you determine
appropriate risk response. This can also be effectively shown using:
a. Beta probability distributions
b. Expected monetary value analysis
c. Tornado diagram
d. Simulation
3. According to McClelland`s theory, managers are not motivated by:
a. Need for achievement
b. Need for power
c. Need for affiliation
d. Need for recognition
4. Adair claims that the effectiveness of a leader is dependent upon meeting ________areas of
need within the work group.
a. One
b. Two
c. Three
d. Four
5. Needs such as training the group, setting standards and maintaining discipline, and
appointing sub-leaders may be called:
a. task functions
b. work functions
c. individual functions
d. team functions
6. Which approach to the study of leadership emphasizes the role of situational factors and
how these moderate the relationship between leader traits or leadership behaviours and
leadership effectiveness?
a. Leader oriented approach
b. Contingency approach
c. Transactional approach
d. Transformational approach
Copyright 2013 The Knowledge Academy Ltd - All rights reserved.

Page 36 of 40

7. Of the following, which describes Management Information Systems?

a. Small applications written for personal use
b. Software projects built for client organizations
c. Software applications that are marketed to hundreds or even millions of clients.
d. Software that an enterprise uses to support business and administrative operations
8. You have to select between two projects. Project A with Net Present value (NPV) of
$100,000 and Project B with NPV of $70,000. What is the opportunity cost of selecting
Project A over Project B?
a. $100,000
b. $70,000
c. $170,000
d. $30,000
9. How is Precedence Diagramming Model (Activity on Node) different from Activity on Arrow?
a. Activity on Node uses only Finish to start activity dependency
b. Activity on Node uses Dummy Activities
c. Activity on Node uses all four types of Activity dependency
d. There is no difference both are same
10. You have to catch a flight to submit a tender document for a strategic project for your
company. You are running late for the flight, but there is a possibility that you can over
speed and catch the flight. What would you do?
a. Over speed and catch the flight
b. Don't over speed as its dangerous and against law
c. Ask your Manager for guidance
d. Speak to customer to postpone the last date of bid submission
11. In your company, payback period is primarily used as the decision criterion for project
selection. Payback period is the:
a. Number of years a company takes to get back the invested amount
b. Discount rate on an investment that makes present value of all cash inflows equal to
present value of all cash outflows
c. Duration in which the project gets completed
d. Number of years a company takes to make profits equal to the amount invested
12. You are a project manager in a manufacturing company. You are developing a new product.
In this context, you are conducting requirements workshop for the stakeholders to
determine the product`s critical characteristics. Which technique would you use for this
purpose?
a. Quality function deployment
b. Joint application development
c. Voice of the customer
d. Juran`s improvement technique
Copyright 2013 The Knowledge Academy Ltd - All rights reserved.
Page 37 of 40

13. Popular iterative four step approach of Plan-Do-Check-Act was advocated by which of the
following Quality Theorist
a. Joseph Juran
b. W. Edwards Deming
c. Philips Crosby
d. Genichi Taguchi
14. All the statements about the Arrow Diagramming method (ADM) or Activity - on-Arrow
(AOA) is true EXCEPT
a. The nodes are used to represent activity and arrow show activity dependency
b. Uses only Finish to Start relationship between activities
c. May use dummy activities
d. It's a popular method of drawing network diagram
15. A popular Japanese technique which advocates continuous small improvements involving
everyone from top management to the lowest level in the organization is called?
a. Ishikawa
b. Kaizen
c. Deming cycle
d. Total Quality Management
16. You are in the final stages of negotiation with one of your seller to provide a medical device
for one of your Research labs. When the pricing is almost finalized, you mention that these
devices have to mandatorily carry an approval from FDA USA (Food and Drug
Administration) . You are using which of the following technique in negotiation?
a. Fair and Reasonable
b. Fait Accompli
c. Lying
d. Extreme Demand
17. All of the following are MOST true for Decision trees, which help us in providing an effective
method of decision making except,
a. Clearly lay out the problem so that all options can be challenged
b. Provide a framework to quantify the values of outcomes and the probabilities of
achieving them.
c. Allow us to analyze fully the possible consequences of a decision
d. Get a financial approval from the CFO
18. Pareto Analysis is a simple technique for prioritizing problem-solving work so that the first
piece of work you do resolved the greatest number of problems. It is based on which of the
following principle?
a. Tom Pareto Principle
b. 80/20 Rule
Copyright 2013 The Knowledge Academy Ltd - All rights reserved.
Page 38 of 40

c. Root Cause Analysis

d. Whys Principle
19. Once the risks have been identified in the project, the next step is to manage the risks. Of
the following, which is NOT a suitable way of managing the risks?
a. By using existing assets
b. By contingency planning
c. By investing in new resources
d. By Brainstorming
20. Which of the following are NOT part of McKinsey's 7S's approach?
a. Shared Values
b. Strategy
c. Share
d. Styles
21. Which of the following is the power that is based on the ability to reward?
a. Coercive Power
b. Reward Power
c. Legitimate Power
d. Prize Power
22. Which of the following is NOT the personal style defined by Merrill and Reid in their
employee motivation theory?
a. Driver
b. Amiable
c. Expressive
d. Affiliation
23. Marginal cost is also known as?
a. Variable cost
b. Fixed cost
c. Margin cost
d. Timely cost
24. According to F.C. Moore, "Delegation means assigning work to the others and giving them
authority to do so". Which of the following suggests the right order for Delegation?
a. Assignment of Duties to Subordinates, Transfer of Authority, Acceptance of Assignment,
Creation of Responsibility
b. Transfer of Authority, Assignment of Duties to Subordinates, Acceptance of Assignment,
Creation of Responsibility
c. Assignment of Duties to Subordinates, Acceptance of Assignment, Creation of
Responsibility, Transfer of Authority
d. Acceptance of Assignment, Creation of Responsibility, Assignment of Duties to
Subordinates, Transfer of Authority
Copyright 2013 The Knowledge Academy Ltd - All rights reserved.
Page 39 of 40

25. Which of the following does not signify the obstacles to effective delegation of authority?
a. Unwillingness of the manager to delegate authority
b. Fear of competition
c. Lack of confidence in subordinates
d. Unwillingness of the subordinate to delegate authority

Copyright 2013 The Knowledge Academy Ltd - All rights reserved.

Page 40 of 40