Chapter 1

1. The growing demand for a broad range of complex, sophisticated, customized goods
and services would have which one of the following implications for the management of
projects in modern organizations
A. Project managers are responsible for making detailed technical decisions
B. Project managers should rely on the use of teams to plan and execute projects
C. Most projects will be performed using subcontractors
D. The design of a project solution should always be frozen early in the planning process

2. Identify the example that would not usually be considered a project.

A. Building a car
B. Developing a computer software application program
C. Designing a new product
D. Installing new equipment in an existing production line

3. According to the authors, the prime objectives of project management are cost, time
and
A. Schedule
B. Quality
C. Customer satisfaction
D. Performance

4. The term program refers to an exceptionally large, long-range objective that is

broken down into a set of ________.
A. Tasks
B. Projects (1.1)
C. Subprojects
D. Campaigns

5. Five attributes that characterize a project include:

A. Purpose, repetition, interdependencies, consistency, uncertainty
B. Lifecycle, schedule, cost, uncertainty, independence
C. Performance, lifecycle, uniqueness, conflict, interdependencies (1.1)
D. Purpose, lifecycle, conflict, certainty, independence

6. Rising client expectations during execution of a project may lead to a condition known
as ________.
Answer: scope creep

7. A project is a temporary endeavor undertaken to create a ________ product or service.

Answer: unique (1.1)

8. Having only partial or no information about a situation or outcome, often due to

ambiguity or complexity is known as ________.
Answer: uncertainty

9. With respect to project goals throughout the project's lifecycle, early in the lifecycle,
the project team's focus should be on how to achieve the required ________.
Answer: performance (1.3)

10. An important implication of the project lifecycle concept is that a project will resist
________ of its existence.
Answer: termination (1.3)
Chapter 2
1. The text identifies two basic types of project selection models. They are
A. Biased and fair
B. Iconic and analog
C. Numeric and nonnumeric (2.3)
D. Numeric and qualitative

2. If a system is being updated due to operating necessity, the project was selected
because
A. The system is a sacred cow system that is not important to business success
B. The system is worth saving at the estimated cost of the project (2.4)

C. The dimension of cost is not relevant to execution of the project

D. The cost overruns can be hidden in someone else's budget

3. The payback period model fails to consider ________.

A. Any cashflows generated by the project
B. Any cashflows generated during the project's execution
C. Any cashflows generated after the project's execution has been completed
D. Any cashflows beyond those required to recover the initial project investment (2.4)

4. If the NPV for a project is > 0, it indicates that the project will
A. Report a profit loss
B. Report a profit gain
C. Cover its hurdle rate (2.4)
D. Fail to cover its hurdle rate

5. Identify the numeric model that usually does not account for all cashflows.
A. Internal rate of return
B. Average return on investment
C. Net present value
D. Payback period (2.4)

6. The process of modeling a problem seeks to carve away the ________ from the bones
of a problem.
Answer: unwanted reality (2.2)

7. Reference to an external standard is necessary when taking an ________ measurement.

Answer: objective (2.6)

8. If repetitions of a measurement produce results that vary from one another by less than
a pre-specified amount, the measurement is said to be a ________ measurement.
Answer: reliable (2.6)

9. According to Wheelwright and Clark, ________ projects have objectives or

deliverables that are only incrementally different in both product and process from
existing offerings.
Answer: derivative (2.7)

10. The RFP solicitation document includes information about price and ________.
Answer: methodology (2.8)
Chapter 3
1. A project manager is responsible for planning, ________, budgeting, directing,
organizing, and controlling the project.
A. Drafting
B. Funding
C. Insuring
D. Staffing (3.1)

2. The mechanism by which the people in organizations make decisions is known as

________.
A. Politics (3.2)
B. Persuasion
C. Win-lose competitions
D. Strategy

3. According to the authors, a Type 2 project is

A. Well understood but not routine
B. Well understood and routine
C. Not well understood and not routine (3.2)
D. Not well understood but routine

4. The project manager needs to possess technical and ________ credibility.

A. Informal
B. Administrative (3.3)

C. Formal
D. Financial

5. The project manager's responsibilities are broad and fall primarily into the three
separate areas of responsibilities to the ________, to the project and the client, and to the
members of the project team.
A. Parent organization (3.1)
B. Investors
C. Interveners
D. Special-interest groups

6. During the ________ stage of the project lifecycle, there is no significant difference in
the importance that project managers place on the three goals of cost, time, and
performance.
Answer: Design or formation stage (3.2)

7. A set of interrelated components that accept inputs and produce outputs in a purposeful
manner is called a ________.
Answer: system (3.1)

8. During the build-up stage of a project lifecycle, __________is the dominant goal of
many project managers.
Answer: schedule (3.2)

9. Culture contains the following four elements of technology: ________, language, and
arts.
Answer: institutions (3.4)

10. Art is the aspect of culture that communicates the ________ of the culture.

Answer: aesthetic values (3.4)

Chapter 4
1. Identify a major advantage of placing a project in the matrix approach.
A. Multiple individuals, including the project manager, take responsibility for managing
the project
B. The project will have permanent use of representatives from the administrative units of
the parent firm
C. The division of authority between the project manager and the functional managers is
not complex
D. There is less anxiety among team members about what will happen to them when the
project is completed (4.3)

2. Identify the statement that is a major advantage of placing a project within a functional
department of the parent organization.
A. The flexible use of staff increases (4.1)
B. Expertise is not easily shared across multiple projects
C. The functional division tends to be oriented towards activities particular to its function
D. The functional division advocates technological discontinuity

3. Identify the statement that is a major disadvantage of placing a project within a

functional department of the parent organization.
A. There is a tendency to suboptimize the function
B. The client is not the primary focus of activity in the function (4.1)
C. The motivation of people assigned to the project tends to be strong
D. The functional division does not contain the normal path of advancement for
individuals whose expertise is in the functional area

4. Identify the statement that is a major advantage of placing a project within the pure
project organization.
A. The functional manager retains full line authority over project team members
B. The lines of communication are more complex
C. Centralized authority tends to decrease the speed of decision-making
D. A holistic approach to performing the project is supported (4.2)

5. The sharing of control by a PM with the functional managers when executing a project
is a major characteristic of a ________ organizational structure.

A. Projectized
B. Pure project
C. Matrix (4.3)
D. Weak project

6. Risk management is the process of dealing with ________ in projects.

Answer: uncertainty (4.6)

7. By dividing a large and monolithic organization into smaller, more flexible units, the
parent organization is using the technique of ________ to capture some of the advantages
of small, specialized organizational units while retaining some of the advantages that
come with larger size.
Answer: divisionalization (4.4)

8. If pure functional and pure project organizations coexist in the firm, the firm is said to
have a ________ organizational structure.
Answer: mixed (4.4)

9. The _________manager is typically responsible for a number of related projects, each

with its own project manager.
Answer: program

10. The ________ is the planning document that describes how the scope of the project
will be accomplished.
Answer: WBS (work breakdown structure).
Chapter 5
1. The Linear Responsibility Chart (LRC) is a specialized view of the action plan that
focuses on ________.
A. Who has what responsibility for each project task

B. Who must execute each project task

C. Who must approve each project task
D. Assigning cost centers for the organizational breakdown structure

2. Identify the statement that describes one of the three major objectives for systems
integration.
A. Performance will be acceptable to the project manager
B. The desired performance will be achieved by optimizing each component in the
system
C. Cost is a design parameter that can be minimized through value engineering (5.2)
D. Project efficiency is of paramount concern

3. During the ________ process, it is important to ensure that managers do not mix
outcomes (events) with the specific tasks (activities) needed to produce them.
A. Brainstorming
B. Activity definition
C. Schedule development
D. Even planning (5.3)

4. In an X-bar control chart, the arithmetic mean of sample means is depicted as

A. The UCL
B. The LCL
C. The centerline
D. The trend line

5. A milestone is a significant event in the project lifecycle that ________.

A. Has a very short duration and consumes limited resources
B. Has zero duration but consumes resources
C. Has zero duration and does not consume resources (PMBOK Guidlines)
D. Indicates completion of intangible deliverables

6. Attributes such as reliability, quality, and maintainability describe aspects of ________

that reflect what a system does.
Answer: performance (5.2)

7. When the relevant cost trade-offs can be estimated, ________ is the simple and
consistent use of cost-effectiveness analysis to achieve the cost objectives for system
integration.
Answer: value engineering (5.2)

8. The set of physical elements required to build a product are documented using a
________.
Answer: bill of materials

9. The ___________ displays how a statistic is changing over time compared to its
average and selected control limits.
Answer: control chart

10. The ________ is a measure of project progress frequently related to planned cost of
tasks accomplished.
Answer: earned value
Chapter 6
1. In a conflict scenario between two parties, when the level of frustration for the first
party has been lowered to the point where no action against the second party is
contemplated, the first party will usually be
A. Totally demoralized by the second party's domination
B. Satisfied with the outcome
C. Plotting future revenge against the second party
D. Dissatisfied with the outcome

2. Property rights and contractual obligations provide a major source of conflicts that
involve the organization and ________.
A. Functional managers
B. Project team members
C. External customers (6.1)

D. Internal customers

3. Within the organization, conflicts are viewed as

A. Conflicts between opponents
B. Conflicts between allies (6.1)
C. Trivial matters caused by personality differences
D. Important differences that should be suppressed

4. If a resource conflict arises between two high-priority projects, precedence is typically

given to the project with the
A. Earliest due date (6.2)
B. Fastest completion time
C. Biggest revenue stream
D. Lowest cost to complete

5. Pressure to complete the project and anxiety about leaving the project will often
generate ________ conflicts during project phaseout.
A. Technical
B. Administrative
C. Cost
D. Personality (6.3)

6. During project formation, lack of ________ about the relative

power/influence/authority of the PM and the functional managers is a major component
of all conflicts involving technical decisions, resource allocation, and scheduling.
Answer: clarity (6.3)

7. The project should move from a general concept to a highly detailed set of plans during
the project ________ phase.
Answer: build-up (6.3)

8. During project build-up, the project manager seeks a commitment of people from the
functional departments when the ________ matrix organizational structure is used to
manage the project.
Answer: strong (6.3)

9. During project build-up, the project manager seeks a commitment of work from the
functional departments when the ________ matrix organizational structure is used to
manage the project.
Answer: weak (6.3)

10. The need to manage technical interfaces and to correct incompatibilities is likely to
create technical conflicts during the __________ phase of the project lifecycle.
Answer: Main program (6.3)