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Free CAPM® Exam Prep Practice Test

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Change the way you learn with the free CAPM practice test. The CAPM practice questions are
simulations of the real deal. You can take this CAPM mock test many times and gauge where you
stand after each module you learn. Try it today! Change the way you learn with the CAPM exam
prep. These CAPM exam questions are representative of the real certiLcation exam and can be
taken multiple times to help you map your progress. Use this CAPM practice test to identify which
areas of project management you are weak in and work on strengthening them. Professionals
who want to test themselves on core project management philosophies will enjoy this mock test.
Take the CAPM questions today and improve your chances of becoming a CAPM certiLed
professional.

Explanations

150 3 2
 Questions Correct Answers % Correct Answers

1. The process of establishing clear and achievable objectives, measuring their

achievement, and adjusting performance in accordance with the results of the
measurement is called:

Strategic Planning

Contingency Planning

Detailed planning

Management by Objectives

Explanations:

Correct Answer is D. In management by objectives, the employee and supervisor meet to discuss the
objectives of the employee over the next review period. At the end of the review period the performance
of the employee is reviewed relative to the objectives, and adjustments are made.

2. During the full life cycle of the project, a plot of the project's expected expenditures will
usually follow a characteristic S curve. This indicates that:

There is a cyclic nature to all projects.

Problems will always occur in the execution phase

There are high expenditures during closeout

The bulk of the project budget will be spent in the execution phase

Explanations:

Correct Answer is D. Most of the project money will be spent during the execution phase. At the
beginning of execution the rate of expenditures rises as people and materials are brought into the
project. Later the expenditures peak and slow down. By the end of the execution phase expenditures are
approaching a minimum.

3. In which project lifecycle phase would you expect to have the greatest in^uence on
overall project cost?

Concept

Design

Build

Launch

Explanations:

Correct Answer is A. All the stated options represent a life cycle phase; Concept is the phase which is
the earliest phase in the project and therefore the phase where in^uence is greatest.

4. Requirement is -

QuantiLed and documented needs of stakeholders

QuantiLed and documented expectations of customer

QuantiLed and documented expectations of sponsor

All of the above

Explanations:

Correct Answer is D. All of the statements state requirement. It can be quantiLed and documented needs
of stakeholders / customers / sponsor etc.
5. TQM is -

Total Quality Management

Time and Quality Management

A common approach to implementing a quality improvement program

A and C

Explanations:

Correct Answer is D. Although Option A, Total Quality Management is the correct option, yet Option D is a
better choice. Option C states correctly that TQM is a common approach to implementing a quality
improvement program.

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

Small applications written for personal use

Software projects built for client organizations

Software applications that are marketed to hundreds or even millions of clients.

Software that an enterprise uses to support business and administrative operations

Explanations:

Correct Answer is D. Software that an enterprise uses to support business and administrative
operations.

7. The type of planning that is equated with more speciLc data or is detailed in nature is
called:
 Strategic

Operational

Tactical

Short Term

Explanations:

Explanation :(c) Tactical. Correct Answer is 'C'. Tactical or bottom up is usually a shorter time frame and
is regarded as more speciLc and detailed in nature.

8. What are the different types of costs in Microsoft Project?

Cost Per Use, Standard Cost, Overtime Cost

Fixed Cost, Cost Per Use, Standard Cost, Overtime Cost

Fixed Cost, Cost Per Users, Standard Cost, Overtime Cost

None of the above

Explanations:

Correct Answer is B. Costs deLned in Microsoft Project is Fixed Cost, Cost Per Use, Standard Cost,
Overtime Cost.

9. What is the name of PMI's Organization maturity model for project management?

CMMi

Six Sigma

OPM3
 JIT

Explanations:

Correct Answer is C. OPM3 was published by the Project Management Institute Incorporated (PMI). It
provides a method for organizations to understand their Organizational Project Management processes
and measure their capabilities in preparation for improvement.

10. Which of the following is NOT a characteristic of a Project?

It has a deLnite beginning and end

It produces a unique deliverable

It is temporary

It is managed in strict accordance with the PMBOK guidelines

Explanations:

Correct Answer is D. All the stated are characteristics of project stated in the Project deLnition, viz.
Project is a temporary endeavor undertaken to create a unique product, service or result.

11. A group of related projects that are managed in a coordinated way that usually includes
an element of ongoing activity is called a:

Major project

Project okce

Program

Group of projects
Explanations:

Correct Answer is C. Program is a group of related projects managed in a coordinated way to obtain
beneLts and control not available from managing them individually.

12. Project constraint could be on -

Cost

Resources

Schedule

Any of the above

Explanations:

Correct Answer is D. The project constraints are all of the options listed and also may include Scope,
Quality, Budget, Risk and more.

13. Which of the following is NOT true about Project Management Okce (PMO)?

Support Project Managers by coaching and mentoring

PMO is a project stakeholder

PMO can terminate projects if required to keep business objectives consistent

PMO is not involved in coordinating communication across projects

Explanations:

Correct Answer is D. PMO is an organizational body or entity assigned with various responsibilities
related to the centralized and coordinated management of those projects under its domain. A PMO may
be delegated the authority to act as an integral stakeholder and a decision maker in a project and can
make recommendations, or terminate projects or take actions as required to keep business objectives
make recommendations, or terminate projects or take actions as required to keep business objectives
consistent. It also supports the project managers and also coordinates communication across projects.

14. Projects require project management while operations require business process
management or operations management. Projects can intersect with operations at various
points during the product lifecycle. Which of the following is not a stage to represent this?

When developing a new product or service

Until the divestment of the operations at the end of the product life cycle

At each closeout phase

At each Executing phase

Explanations:

Correct Answer is D. Executing phase is not the stage for intersection of projects and operations.

15. Enterprise environmental factors refer to both internal and external environmental
factor that surround or in^uence a project's success. Of the following, which is NOT an
enterprise environmental factor :

Organizational culture, structure and processes

Existing human resources

Project management information system

Historical data

Explanations:

Correct Answer is D. Of the options listed, Historical data is organizational process assets and not
deLned as Enterprise environmental factors.
16. A person who is involved in or may be affected by the activities or anyone who has
something to gain or lose by the activity of the project is called a:

Team member

Customer

Stakeholder

Supporter

Explanations:

Correct Answer is C. A stakeholder is an individual or an organization that is involved in or may be

affected by project activities.

17. Large projects may be divided into smaller, more manageable components known as,

checklists

decomposition

scope breakdown structures

subprojects

Explanations:

Correct Answer is D. Large projects may be divided into more manageable components known as
subprojects.

18. A manager who manages a group of related projects is called a -

 Project manager

Project expeditor

Program coordinator

Program manager

Explanations:

Correct Answer is D. A Program Manager is a manager that manages a group of related projects in a
coordinated way.

19. Which of the following activity is conducted last as part of closing process group

Validating deliverables

Archival of the document

Lesson learnt documentation

Customer satisfaction survey

Explanations:

Correct Answer is D. Measuring customer satisfaction survey is the last activity under closing

20. In the PMBOK, each process is broken into -

Inputs and Outputs

Tools and techniques

Best Practices and Recommended users

 A and B

Explanations:

Correct Answer is D. In the PMBOK, each process is broken into Inputs, Outputs and Tools and
Techniques.

21. A stakeholder has the greatest ability to in^uence a project during -

Monitoring and Controlling

Initiation and Planning

Closing

Executing

Explanations:

Correct Answer is B. Though the stakeholders have in^uence over the project process groups, the
greatest in^uence is during the Initiation and Planning process groups.

22. A Project Manager should support making changes during Execution -

Always

Never

When they are warranted and inline with the strategic goals of the organization

Most of the time

Explanations:
Correct Answer is C. Only changes that are warranted and inline with the strategic goals of the
organization should be made; the Project Manager should not support every change as that involves
resources, time, and cost.

23. Conducting Lessons Learned is a critical part of -

Executing Process

Monitoring and Controlling

Performance Appraisal

Closing

Explanations:

Correct Answer is D. Conducting Lessons learned is a critical path of Closing process group. The
lessons learned should be collated through comprehensive project review and should update the
organization's knowledge base.

24. Of the following, which is not a process from the Planning Process Group?

Collect Requirements

Perform Quality Assurance

Develop Schedule

Perform Qualitative Risk Analysis

Explanations:

Correct Answer is B. Of the listed options, 'Perform Quality Assurance' is a process from the Executing
Process Group.
25. The Change Management Plan should be included in which of the following?

Project Management Plan

Communications management plan

ConLguration management plan

Quality management plan

Explanations:

Correct Answer is A. The Change Management Plan is a document or procedure found in the project
management plan and is used for the 'Control Scope' process.

26. Who is a Project Initiator?

A member of your team

A member of quality management team

A project manager

A person or organization that has the ability and authority to start the project

Explanations:

Correct Answer is D. Project Initiator is a person who has initiated the project, i.e. he has the ability and
authority to start the project.

27. Who does the Project Integration?

Project Sponsor
 Project Manager

Project Team

Stakeholder

Explanations:

Correct Answer is B. This is pretty simple and straight forward question.

28. Which of the following is true about Project Plan ?

Project Plan needs to have the buy in of the entire project team

Project Plan is created and approved by the Project Manager

Project Plan is prepared by the Sponsor and given to the Project Manager to execute

Project plan is prepared only when all the required resources come on board

Explanations:

Correct Answer is A. Project Plan needs to have the buy-in of entire project team. The Project Plan
should be created by discussion with the Project Team.

29. Which of the following statements is MOST True?

The project charter identiLes the names of project management team members

The project charter tracks a project's history

The project charter names and authorizes the project manager

The project charter describes the details of what needs to be done to satisfy quality improvement
objectives
Explanations:

Correct Answer is C. The project charter is a document that authorizes a project and names the project
manager and authorizes him to use the project resources.

30. Which of the following may NOT be included in the Project Management Plan?

Schedule baseline

Quality management plan

Process improvement plan

Performance measurement report

Explanations:

Correct Answer is D. Project management plan is composed of project baselines and subsidiary plans. It
does not include any performance reports.

31. All of the following are TRUE except,

Changing an original project baseline is appropriate only in extreme conditions

Changes must be made in accordance with the project's change control system

A CCB may be used to review and approve/disapprove project change requests

Any and all changes to the approved project management plan should be discouraged

Explanations:

Correct Answer is D. Changes to project management plan are applicable if required but should follow
the Change Control system in the proper manner and all documentation should be executed.
32. The project is characterized by frequent changes to the project charter. Authorizing
project charter changes should typically be the responsibility of __________

Senior management

Project Manager

Project management team

Project stakeholders

Explanations:

Correct Answer is A. Projects are authorized by someone external to the project and someone who is
higher in the hierarchy such as sponsor, senior management, PMO or portfolio steering committee. In
the options listed, only option A suggests a person who is senior in hierarchy, that is the correct answer.

33. Which of the following deLnes a Defect repair?

Documented direction for executing the project work to bring expected future performance of the
project work in line with the project management plan

Documented direction to perform an activity that can reduce the probability of negative
consequences associated with project risks

The formally documented identiLcation of a defect in a project component with a recommendation

to either repair the defect or completely replace the component

Documented direction to perform an activity that can expand the probability of negative
consequences associated with project risks

Explanations:

Correct Answer is C. Defect repair is the formally documented identiLcation of a defect in a project
component with a recommendation to either repair the defect or completely replace the component.
34. Facilitating a change to the project schedule involves each of the following, except,

replacing the original schedule baseline

analyzing the impact of the change

preparing a formal change request, in accordance with the project change control system

formally obtaining the appropriate approval

Explanations:

Correct Answer is A. A change to the project schedule does not indicate replacing the schedule baseline.
It means analyzing the impact and following the change control process.

35. Which of the following is true?

The project charter is developed during closing

The project charter is developed during initiation

The project charter is developed during planning

The project charter is developed during execution

Explanations:

Correct Answer is B. Project charter is developed during initiation process group.

36. A budget change is requested and approved during the execution/control phase of the
project. What is your MOST appropriate action following approval?
 Integrate the changes as approved, then create a new cost baseline

Create a new cost baseline, but only after changes have been made

Notify your project sponsor

Integrate budget changes but maintain the original cost baseline

Explanations:

Correct Answer is D. The most appropriate action following approval is to integrate budget changes and
to maintain the original cost baseline.

37. Which is NOT an output from the 'Direct and Manage Project Execution' process?

Deliverables

Work Performance information

Project management plan

Project document updates

Explanations:

Correct Answer is C. Project management plan is an input to this process while the others stated are
outputs from this process.

38. Who performs and documents lessons learned?

Project manager and Team

Project manager

Key project stakeholders

 Project sponsor

Explanations:

Correct Answer is A. Project manager and team performs and documents lessons learned.

39. Which is a tool and technique for the process 'Perform Integrated Change Control'
process?

Project management plan

Change Control meetings

ConLguration management

Change control procedures

Explanations:

Correct Answer is B. Change Control meetings is a tool and technique for the said process.

40. Which of the following is NOT a conLguration management activity included in the
integrated change control process?

ConLguration status accounting

ConLguration identiLcation

ConLguration veriLcation and audit

ConLguration control

Explanations:
Correct Answer is D. ConLguration management activities included in the integrated change control
process are ConLguration status accounting, ConLguration identiLcation and ConLguration veriLcation
and audit.

41. Any numbering system that is used to monitor project costs by category such as labor,
supplies, or materials, for example, is called:

Chart of Accounts

Work Breakdown Structure

Universal standard

Standard accounting policy

Explanations:

Correct Answer is A. The chart of accounts is the system used to monitor project costs as deLned by
PMI.

42. An example of 'Validate Scope' process is :

Reviewing the performance of an installed software module

Managing changes to the project schedule

Decomposing the WBS to a work package level

Performing a beneLt-cost analysis to determine if we should proceed

Explanations:

Correct Answer is A. Validating scope is the process of verifying that the project made or delivered what
was asked for.
43. A project manager is creating a work breakdown structure for her project. In the
breakdown structure, the lowest level of the breakdown for the project manager is called
the:

Activity

Task

Work Package

Cost account

Explanations:

44. A project manager is reviewing the scope of the project and the scope baseline of the
project. Which of the following does it include?

The original project schedule, budget, and scope

The original project description and the project charter

The original scope of the project plus or minus any scope changes

The current project budget

Explanations:

Correct Answer is C. The current project baseline for scope includes the original scope of the project
plus or minus any scope changes that have taken place since the baseline for scope was established.

45. A project manager is reviewing the work breakdown structure for her project. The WBS
for the project represents:
for the project represents:

All the tangible items that must be delivered to the client

All the work that must be completed for the project

The work that must be performed by the project team

All the activities of the project

Explanations:

Correct Answer is B. The work breakdown structure represents all the work that must be done in order to
complete the project. Doing all the work will deliver all the tangible results to the customer.

46. When decomposing project work during WBS creation, which of the following activities
is not part of the process :

Identifying the deliverables

Structuring the WBS

Verifying the levels in the WBS

Assigning work to a speciLc resource

Explanations:

Correct Answer is D. Decomposing project work during the WBS creation does not involve assigning
work to a speciLc resource.

47. In a very large project having a budget of $5 million and a project team of over one
hundred persons, the project manager constructs a work breakdown structure. The project
manager will do the WBS to the detail level of which of the following?
 Task

Activity

WBS element

Work Package

Explanations:

Correct Answer is D. The project manager will normally break the WBS down to the work package level.
Work packages can be broken down further into tasks and activities.

48. The work that must be done in order to deliver a product with the speciLed features and
functions is:

Project scope

Project veriLcation

Project control

Product scope

Explanations:

Correct Answer is A. Project Scope is the work that needs to be accomplished to deliver a product,
service or result with the speciLed features and functions. Product scope is the features and functions
that characterize a product, service or result.

49. Which of the following is NOT a tool and technique for the 'DeLne Scope' process?

Product analysis

Alternatives IdentiLcation
 Facilitated workshop

Decomposition

Explanations:

Correct Answer is D. Of the options listed, Decomposition is a tool and technique for the 'Create WBS'
process. All the other options are tools and techniques for the 'DeLne Scope' process.

50. Which of the following are the Requirement workshops that are focused sessions that
bring key cross functional stakeholders together to deLne product requirements?

Facilitated workshops

Cross Functional workshops

Focus groups

Group workshops

Explanations:

Correct Answer is A. Facilitated workshops are Requirement workshops that are focused sessions that
bring key cross functional stakeholders together to deLne product requirements.

51. The method of reaching a group decision where the largest block in a group decides
even if a majority is not achieved is known as :

Unanimity

Plurality

Majority

Dictatorship
 Dictatorship

Explanations:

Correct Answer is B. Plurality is the group decision making technique where the largest block in a group
decides even if a majority is not achieved.

52. Job Shadowing

an observation technique that is usually done externally by the observer viewing the user perform
his or her job

Control Scope

Collect Requirements

Verify Scope

Explanations:

Create WBS

53. Which of the following may NOT be included in the Project Scope Statement?

Project exclusions

Project deliverables

Project assumptions

Product veriLcation criteria

Explanations:

Correct Answer is D. Product veriLcation criteria is not included in the Project Scope Statement.
54. Which of the following are not INPUT to the 'Validate Scope' process?

Requirements documentation

Requirements traceability matrix

Accepted deliverables

Validated deliverables

Explanations:

55. What is Decomposition?

WBS is also called Decomposition

Breaking down a deliverable into smaller pieces so that it can be properly managed

It is the process of identifying similar risks

It is the process of identifying similar activities

Explanations:

56. Which is the tool and technique for the 'Control Scope' process?

Variance analysis

Inspection
 Decomposition

Expert Judgment

Explanations:

Correct Answer is A. All the other are tools and techniques for the other processes.

57. You are the project manager of a project that is in its early phase. You need to estimate
the duration of implementing the project. Based on your experience with similar past
projects, you estimate a 6-month implementation time. What is this type of estimation
technique called?

Three Point estimating

Bottom up Estimating

PERT

Analogous Estimating

Explanations:

58. An activity has an Early start(ES) of day 5, a Late Start (LS) of day 15, an Early Finish
(EF) of day 8 and Late Finish(LF) of day 18. This activity :

Is on the critical path

Has a lag

Is progressing well

Is not on the critical path

Explanations:

Correct Answer is D. The said activity has a ^oat, LS - ES = 15-5=10 or LF-EF=18-8=10. Hence this activity
is not on the critical path as activities on the critical path do not have a positive ^oat.

59. The difference between actual time and planned time is known as,

Variance

Performance quota

BAC

Baseline reserve

Explanations:

Correct Answer is A. Variance is the difference between actual time and planned time.

60. If a project has 5 days of project ^oat and 10 days of total ^oat, what will happen if the
early start date is delayed 3 days, how will this impact the project completion date:

The project end date will be pushed out 5 days

The project end date will be pushed out 10 days

The Lnish date won't change

The project will be able to Lnish early

Explanations:

Correct Answer is C. Since the project already has 5 days of project ^oat and 10 days of total ^oat, the
early start date delay of 3 days will not impact the project completion date.
early start date delay of 3 days will not impact the project completion date.

61. The project manager decided to improve the predicted completion date for the project
by doing in parallel several of the activities that were scheduled to be done in sequence.
This is called:

Crashing

Increasing priorities

Fast Moving

Fast Tracking

Explanations:

Correct Answer is D. Fast tracking a schedule is Lnding activities that can be done in parallel that were
originally scheduled to be done in sequence.

62. The original schedule (for a project, a work package, or an activity), plus or minus
approved changes, is called:

The working schedule

The target schedule

The performance schedule

The schedule baseline

Explanations:

Correct Answer is D. The baseline schedule as well as the baseline budget and the baseline scope are
the original project plans plus or minus any approved changes. There are many other terms used to
describe schedules, but the deLnition given is the deLnition of the baseline schedule.
63. Resource leveling will generally:

Reduce the time needed to do the project

Increase the total time necessary to do all the tasks

Reduce the overutilization of resources

Reduce resources to the lowest skill that is possible

Explanations:

Correct Answer is C. Resource leveling is a tool in most project management software and can also be
done manually. In resource leveling an attempt is made to reduce overutilization of resources to their
normal utilization.

64. A task was scheduled to use two persons, full time, and take two weeks to complete.
Instead, the project manager was only able to assign one person to this task. At the end of
two weeks, the person assigned to the task was 75% complete. What is the cost
performance index?

0.5

1.5

1.1

0.7

Explanations:

Correct Answer is B. At the end of two weeks this task is 75% complete. The PV was to be 4 person-
weeks, two people working full time for two weeks. The EV is therefore 3 person-weeks, .75 x 4. The AC
is 2 person-weeks. The cost performance index (CPI) is the EV / AC. i.e., CPI = 3 person-weeks / 2
person-weeks 1.5.
person-weeks 1.5.

65. Which of the following is considered to be a simulation technique?

PERT Analysis

GERT Analysis

Monte Carlo analysis

Critical path method

Explanations:

Correct Answer is C. Monte Carlo analysis is a simulation technique that assigns durations to tasks in a
schedule and then calculates the schedule information.

66. In the Lrst attempt in resource leveling the project schedule, what would you expect to
occur?

The number of required resources will increase during certain time periods of the project

The number of required resources will decrease during certain time periods of the project

The overall project duration will increase

The overall project duration will DECREASE

Explanations:

67. A project manager would like to manage his project in such a way that he will be able to
predict the duration of the project more accurately, even though the estimates for the
duration of the activities have a lot of variability. The project manager should use which
duration of the activities have a lot of variability. The project manager should use which
method to more accurately predict the project completion date?

CPM

GERT

PERT

Activity Sampling

Explanations:

Correct Answer is C. PERT stands for program evaluation and review technique. In PERT, each of the
activities has the optimistic, pessimistic, and most likely duration estimated. The weighted average is
calculated by adding the optimistic, pessimistic and four times the most likely duration and dividing by 6.

68. The project manager will use the PERT method of scheduling for the project that she is
working on. Using the PERT calculation, the variance for the project is found to be 25 days
and the duration of the project is found to be 169 days. What is the range of values for the
project duration such that there will be at least a 95% probability that the actual project
completion will fall between the high and low value of the range of values?

164 - 173 days

144 - 194 days

119 - 219 days

159 - 179 days

Explanations:

Correct Answer is D. In the PERT calculation, the standard deviation is calculated by squaring the
standard deviation for each of the activities on the critical path of the project, adding them together and
then taking the square root. This is the standard deviation of the project. Plus or minus two standard
deviations from the expected value of the project duration will have a range of values such that the
deviations from the expected value of the project duration will have a range of values such that the
project has a 95% probability of actually Lnishing within the dates calculated.

69. Of the following, which is NOT a tool and technique for the 'Sequence Activities'
process?

Dependency determination

Applying leads and lags

Schedule network templates

Milestone list

Explanations:

Correct Answer is D. Milestone List is an input to the 'Sequence Activities' process.

70. Which of the following represents a progressive elaboration planning technique where
the work to be accomplished in the near term is planned in detail and future work is
planned at a higher level of the WBS?

Rolling Wave Planning

Decomposition

Templates

Activity Sampling

Explanations:

Correct Answer is A. Rolling Wave Planning is a progressive elaboration planning technique where the
work to be accomplished in the near term is planned in detail and future work is planned at a higher level
of the WBS.
71. Which dependency or logical relationship of Activity-On-Node is depicted when we say -
The completion of the successor activity depends upon the completion of the predecessor
activity

Finish to Start

Finish to Finish

Start to Start

Start to Finish

Explanations:

Correct Answer is B. Finish to Finish is when the completion of the successor activity depends upon the
completion of the predecessor activity.

72. Which is the output from the 'Estimate Activity Resources'?

Resource breakdown structure

Alternatives data

Project management software

Resource calendars

Explanations:

Correct Answer is A. Of all the options listed, Resource Breakdown structure is the output from this
process.

73. For a project with the following data, evaluate the project's burn rate : PV = $750,000, EV
73. For a project with the following data, evaluate the project's burn rate : PV = $750,000, EV
= $750,000 and AC = $900,000

1.2

0.1

0.83

Explanations:

Correct Answer is A. Burn Rate = 1/CPI = AC / EV = 900,000 / 750,000 = 1.2

74. Post-mortem analysis after scheduled Lnish date of a project shows a CPI of 0.8 and an
SPI of 1.25. What is a plausible explanation for that?

The project was terminated early. At that time, it was over budget and ahead of schedule

The project has produced additional deliverables which were originally not required

The project has evidently been Lnished under budget and behind of schedule

The project has evidently been Lnished over budget and ahead of schedule

Explanations:

Correct Answer is A. The key to the answer is what happens to SV and SPI when your project is Lnished.
Assuming Lnished" means you completed all your planned work (PV) and deliverables.

75. Which of the following about Budgets is not true,

Budgets need not be approved

 Budget is an approved estimate for the project

Budget is an approved estimate for any work or schedule activity

Budget at completion is the total planned value for the project

Explanations:

Correct Answer is A. Estimated costs of individual activities or work packages is aggregated to establish
an authorized cost baseline. It is essential to get the project budgets approved. All the options listed
barring option A are correct.

76. What does a CPI value of greater than 1 indicate?

Cost under run of the estimates

Cost Overrun of the estimates

Does not affect the project

Project is ahead of schedule

Explanations:

Correct Answer is A. A CPI value greater than 1 indicates Cost under run of the estimates.

77. During the status review meeting with the Top management, John, the project manager
presents the S-curve for his project. The Index values for Cost and Schedule are 1.2 and 0.8
respectively. Which of the following is true for John's project?

Project is behind schedule and over budget

Project is ahead of schedule and under budget

Project is behind schedule and under budget

 Project is ahead of schedule and over budget

Explanations:

Correct Answer is C. Since CPI = 1.2 and SPI = 0.8 hence the Project is behind schedule and under
budget

78. A budgetary estimate should be accurate to what degree?

A rough order of magnitude

-10% to +25%""

-5% to +10%""

A top down Lgure

Explanations:

Correct Answer is B. The conLdence range for Budgetary estimates is -10% to +25%.

79. Which of the following statements is MOST true?

Price and cost are essentially interchangeable

Price includes all direct costs, whereas cost includes all indirect project costs

Price and cost are not the same

Price should be considered as a lifecycle costing factor, whereas cost should not be

Explanations:

Correct Answer is C. Of the listed options, option A is false. Option B and D appear misleading. Option C
Correct Answer is C. Of the listed options, option A is false. Option B and D appear misleading. Option C
broadly states the difference.

80. Which of the following is the cost estimate technique that involves developing detailed
estimates at the work package level of the WBS, thereafter rolling them up to derive the
project's total cost?

Analogous estimating

Parametric estimating

Bottom - up estimating

Probabilistic estimating

Explanations:

Correct Answer is C. Bottom up estimating generally produces the most conLdent estimates, but is more
costly and time consuming than analogous estimating. Bottom up estimating is performed by
developing detailed estimates for each activity at the work package level of the WBS.

81. Which of the following statements is MOST true regarding Cost Baselines?

Cost baselines are typically illustrated using graphs. Plotted cost baselines usually form an S curve
appearance.

Cost baselines are typically documented informally as they are likely to change frequently.

Cost baselines are typically documented as a subsidiary plan to the overall project plan

Cost baselines are typically illustrated using Gantt Charts or Milestone Charts

Explanations:

Correct Answer is A. Option B is false as cost baseline should not be subject to frequent changes.
Option C describes the cost management plan more accurately than the cost baseline. Option D more
accurately describes the project schedule and not the cost baseline. Hence, Option A is correct.
accurately describes the project schedule and not the cost baseline. Hence, Option A is correct.

82. Tools and Techniques for 'Control Costs' process includes all of the following except -

Variance analysis

Performance reviews

Forecasting

Reserve Analysis

Explanations:

Correct Answer is A. Of the listed options, Variance Analysis is a tool and technique used for the 'Control
Scope' process.

83. A project was estimated to cost $1.5M and scheduled to last 6 months. After three
months, the earned value analysis shows the following - EV = $650,000, PV = $750,000, AC
= $800,000. What is the Schedule Variance?

-$100

+$100

-$50

+$50

Explanations:

-$100 is the Schedule Variance

84. To distinguish top down estimates from bottom up estimates, it would be correct to say
84. To distinguish top down estimates from bottom up estimates, it would be correct to say
that the bottom up estimate would be:

Less accurate

Both have about the same accuracy

More accurate

No different to perform than the top down estimate

Explanations:

Correct Answer is C. Bottom up estimating generally produces the most conLdent estimates, but is more
costly and time consuming than analogous estimating. Bottom up estimating is performed by
developing detailed estimates for each activity at the work package level of the WBS.

85. Which of the following mechanisms or processes is adopted to validate that the work is
done to the customer satisfaction/requirement even before you present it to the customer?

Perform Quality Control

Verify Scope

Control Scope

Monitor and Control Project Work

Explanations:

Correct Answer is A. Validated deliverables are the major output from Perform Quality Control. These
validated deliverables are then an input into Verify Scope where acceptance of the deliverables from the
customer is obtained.

86. The Upper Control Limit (UCL) and Lower control limit (LCL) on a typical control chart
indicate what?
indicate what?

Process speciLcation limits

Product performance speciLcation limits

Statistical validation that the product of the project satisLes performance speciLcations

Acceptable range of variation in the process

Explanations:

Correct Answer is D. Upper and lower speciLcation limits are based on requirements of the contract.
They re^ect the maximum and minimum values allowed. They are set by the project manager and
appropriate stakeholders to re^ect the points at which corrective action will be taken to prevent
exceeding speciLcation limits.

87. Which of the following is the LEAST true?

Prevention over Inspection is a preferred project quality concept

Pareto diagrams typically identify 20% of all possible root causes that are responsible for 80% of
the problems

Project QC monitors both product related deliverables and project management deliverables

Statistical sampling is a QC technique that requires inspection of only 50% instead of 100% of the
population, thus reducing testing time by half.

Explanations:

Correct Answer is D. Statistical sampling is a valid technique that can save time and money but the
actual percentage of items sampled is determined using statistical analysis and not Lxed at 50% as
stated in option D.

88. You have discovered a problem and are trying to determine the cause. The process
whereby you identify the variables that have the most in^uence on the project by holding all
whereby you identify the variables that have the most in^uence on the project by holding all
the variables constant and changing one at a time is called:

Product correlation

Design of experiment

System conLguration

Output processing

Explanations:

Correct Answer is B. Design of experiment is a statistical method for identifying which factors may
in^uence speciLc variables of a product or process under development or in production.

89. The totality of characteristics of an entity that bear on its ability to satisfy stated or
implied needs is the deLnition for:

Modern quality management

Quality assurance

Quality

Quality control

Explanations:

Correct Answer is C. Stated and implied needs are the inputs to developing the requirements of the
product or output from the project.

90. One of the fundamental tenets of quality management is that quality:

Must exceed customer expectations

 Must exceed customer expectations

Is planned in and not inspected in

Will increase cost

Costs must all be passed onto the customer

Explanations:

Correct Answer is B. Quality must be planned into the product, not inspected in. The design and building
of the product should be such that the quality will be designed or built in rather than expecting the
inspection of the product to catch the mistakes and defects and rework them into a quality product.

91. A category or rank given to products that have the same functional use but different
technical characteristics is called the product's:

Quality

Functional characteristics

Grade

Technical characteristics

Explanations:

Correct Answer is C. Products that are able to perform and function acceptably but are different
technically are graded into different categories. For example, wood is graded according to the number of
knots that are present in the wood. The wood performs the function of being structurally sound in all
grades, but the desirability of knot free wood leads us to higher grades of wood.

92. In a manufacturing process that is being controlled by control charts, there are
variables occurring that will affect the process output. Variations in the process that are
considered to be normal process variables are called:
 Common causes

Uncommon causes

Special causes

Random causes

Explanations:

Correct Answer is A. Common causes are those that are the normal variables produced in the process
output when the process is operating normally. Special causes are the causes of variability in the
process when the process is not operating normally.

93. All of the following are characteristics of a ^owchart, except-

also known as process map or system ^owchart

graphical illustration

show how elements of a system relate

also termed as Ishikawa

Explanations:

Correct Answer is D. A ^owchart is a graphical representation of a process showing the relationships

among process steps. Flowcharts are not termed as Ishikawa.

94. Which of the following best represents the term - Cost of Quality?

cost of ensuring life cycle costing objectives

cost of performing bottom up estimates

 cost of performing beneLt / cost analysis

cost of ensuring quality objectives

Explanations:

Correct Answer is D. Cost of quality includes all costs incurred over the life of the product by investment
in preventing nonconformance to requirements, appraising the product or service for conformance to
requirements and failing to meet requirements.

95. A responsibility assignment matrix ___________________________

Should be created only for large complex projects

Shows assignment and levels of authority and does not indicate time

Shows when people will be brought into the project and when they will leave

Maybe used to show reporting relationships

Explanations:

Correct Answer is B. RAM is used to illustrate the connections between work packages or activities and
project team members.

96. Herzberg divided motivation factors into two classes: satisLers and dissatisLers.
Examples of satisLers are:

Vacation time, assignment of a personal staff assistant

Work satisfaction, fringe beneLts

Plush okce space, performance based salary raise

Sense of personal achievement, work satisfaction

Explanations:

Correct Answer is D. Projects must often have their own reward and recognition systems since the
systems of the performing organization may be not appropriate.

97. The skill of listening involves more than just hearing the sounds. One of the
characteristics of a good listener is that he or she:

Finishes the speaker's sentences

Takes good notes

Repeats some of the things said

Agrees with the speaker

Explanations:

Correct Answer is C. Good listening is an important skill for any manager.

98. Which con^ict resolution technique should be used when the deadline is critical and
tasks are at risk of slipping?

Accommodating

Forcing

Problem Solving

Compromising

Explanations:

Correct Answer is B. The scenario clearly warrants action on war-footing basis and therefore, the best
Correct Answer is B. The scenario clearly warrants action on war-footing basis and therefore, the best
method to resolve con^ict is forcing.

99. You are a team member for the project to develop the resource management system
that looks into Recruitment, Attendance, Leave Management, Appraisal and Employee Exit.
The project has been assigned a budget of $3 Million that is not ^exible. This is an example
of,

Assumption

Expert Judgment

Constraint

Estimation

Explanations:

Correct Answer is C. Constraint is an applicable restriction or limitation, either internal or external to a

project, which will affect the performance of a project or process. Here, the question mentions that the
project has a constraint budget of $3 Million.

100. Your project manager has decided on the ideal project management team and
sketched out an informal plan to begin recruiting. He has also decided that it will be best to
lease temporary okce space, to serve as project headquarters for the team. Establishing
an okce facility like this for the team to work in close proximity is an example of what?

Team development

Team building

Pre-assignment

Collocation
Explanations:

Correct Answer is D. Co-location involves placing many or all of the most active project team members
in the same physical location to enhance their ability to perform as a team.

101. Which of the following is NOT a tool and technique for the 'Acquire Project Team'
process?

Virtual teams

Negotiation

Acquisition

Resource calendars

Explanations:

Correct Answer is D. Resource calendars is an output from the 'Acquire Project Team' process.

102. Team development will be MOST dikcult to achieve under which of the following
conditions?

When team members are accountable to both - project manager and functional manager

When any of the seven sources of con^ict fail to be resolved and problems linger

When the project manager's leadership power is derived primarily via reward and/or punishment

When the project budget is so austere that zero spending on team building activities is allowed

Explanations:

Correct Answer is A. All the options have issues regarding team development, but team development will
be most dikcult when team members have to report to two bosses.
be most dikcult when team members have to report to two bosses.

103. The Lve stages of development of teams is represented by -

Forming, Storming, Norming, Performing, Adjourning

Forming, Norming, Storming, Performing, Adjourning

Forming, Performing, Storming, Norming, Adjourning

Forming, Storming, Norming, Performing, Leaving

Explanations:

Correct Answer is A. The Lve stages of development of teams is represented by Forming, Storming,
Norming, Performing and Adjourning.

104. Which of the following is NOT an input to the 'Develop Human Resource Plan'?

Enterprise environmental factors

Organizational process assets

Activity resource requirements

Expert Judgment

Explanations:

Correct Answer is D. Expert Judgment is not an input to the said process.

105. Which of the following is TRUE about Progress Reports, a report that informs the
stakeholders about the progress of the project?
 They allow stakeholders to judge the performance of the project according to its plan

They are generally considered to be overkill on very small projects

They require the use of earned value reports

They must be produced by the project manager

Explanations:

Correct Answer is A. Progress reports should be used even on the smallest of projects. They allow all of
the stakeholders to judge the performance and progress of the project according to the project plan.

106. The three principal interests in maintaining good document control are:

Timely communication, collection of performance appraisal data, and assuring proper disposal of
sensitive documents

Timely communication, maintaining proper approvals and communication cost control

Effective communication, ability to reconstruct why decisions were made and historical value

Security, change management and procedural documentation

Explanations:

Correct Answer is C. The project manager has three main reasons for or interests in having good
document control: effective communications, making sure that all necessary information is distributed
and received by all those who need it; be able to reconstruct why certain decisions were made and the
conditions under which they were made; historical value, so that lessons learned can be used in the
future on other projects.

107. Your project manager wants to handle communications well in his project. In order to
do this he has chosen to write a communications plan. Of the items listed below, which one
is not part of the communications plan?
 Collection and Lling structure

Distribution plan

Method for accessing information

Project organizational structure

Explanations:

Correct Answer is D. Of all the options listed, Communication Management plan does not include Project
organizational structure.

108. Which of the following techniques allows for the participants to be anonymous?

Brainstorming

Nominal group

Delphi technique

Crawford technique

Explanations:

Correct Answer is C. The Delphi technique allows participants to be located in different parts of the
world. It lends itself to using e-mail. In the process, the participants submit their ideas anonymously. The
facilitator receives the ideas, categorizes them, and returns the list to the participants.

109. In the communications model, communications between the sender and the receiver
often are affected by communications barriers. These include all of the following except:

Cultural differences
 Differences in motivation

Educational differences

Lack of a communications device

Explanations:

Correct Answer is D. Communication involves at least two people who may have very different
backgrounds, experience, and education. Many times these individuals come from different cultures,
speak different languages, and certainly have different drives.

110. Formal written communication with the customer is required when :

Customer requests some additional work not covered under the contract

Project has cost overruns

Project has a schedule slippage that changes the critical path

Defects are detected

Explanations:

Correct Answer is A. Formal written communication with customer is required in procurement, especially
where the contract is involved. Since Option A talks about contract, hence it is the answer.

111. When you want to report on the actual project results vs. planned results, you use?

Trend report

Forecasting report

Status report

Variance report
 Variance report

Explanations:

Correct Answer is D. The keyword here is compare". The only report that compares project results is
Variance report."

112. The Power /interest grid groups the stakeholders based on -

Level of authority (power) and their level of concern (interest) .

Level of authority (power) and their active involvement (in^uence)

Active involvement (in^uence) and ability to effect changes to project's planning or execution
(impact)

power, urgency and legitimacy

Explanations:

Correct Answer is A. The Power / Interest Grid groups the stakeholders based on their level of authority
(power) and their level of concern (interest) regarding the project outcomes.

113. Which of the following is NOT an input to the 'Plan Communications' process?

Stakeholder register

Communications technology

Stakeholder management strategy

Enterprise environmental factors

Explanations:

Correct Answer is B. Of the options listed, Communication technology is the tool and technique for the
Correct Answer is B. Of the options listed, Communication technology is the tool and technique for the
'Plan Communications' process. All the other options are inputs to the said process.

114. You are attending the status meeting along with 7 other project team members and
the project manager. How many communication channels are available in the status
meeting?

28

36

21

20

Explanations:

Correct Answer is B. There are a total of 9 people involved : 7 team members, Project Manager and your
self. Using the formula for potential communication channels, viz. n(n-1)/2, the communication channels
available are 36.

115. Which of the following statement is NOT true about Risks?

Risks cannot be identiLed and have to be dealt with as they occur

Risk IdentiLcation is the process of identifying which risks might affect the project

Risk Response Planning is the process of developing options and actions to enhance opportunities
and to reduce threats to project objectives

A risk or threat can be transferred to a third party

Explanations:

Correct Answer is A. Risks can be identiLed during the project lifecycle and strategies to deal with them
can also be created as part of Risk Response Planning during the Planning process group.
116. Two vendors offer to sell similar electronic components, which are integrated at the
vendor's site. To avoid risk while evaluating the bids, the project manager views such items
as the vendors'?

Price, sales volume, proLt margin

Price, promised delivery, inspection schedule

Price, experience, delivery means

Experience, personnel skills, material control procedures

Explanations:

Correct Answer is 'C'. Price, experience and delivery are the basis on which the project manager should
select a vendor to bring down the risk associated with the project.

117. Which of the following techniques is used to evaluate the degree to which the data
about risks is useful for risk management?

Decision Tree

Probability impact matrix

Simulation

Data Quality Assessment

Explanations:

Explanation :(d) Data Quality Assessment. Correct Answer is 'D'. Risk Data Quality Assessment is a
technique used to evaluate the degree to which the data about risks is useful for risk management. It
involves examining the degree to which risk is understood and the accuracy, quality, reliability and
integrity of the data regarding the risk.
118. Upon evaluation, a newly appointed project manager identiLes that the XYZ project
has many risks with high-risk impact scores, but has an overall low risk score. How is this
possible?

The risk scores are graded on a bell curve.

The risks are rated High, Medium, and Low

The impact of each risk is not accounted for until it comes to fruition

The probability of each risk is low

Explanations:

Correct Answer is 'D'. Risk Score is the product of probability and impact. A risk can have a very high
impact on the project, but inversely may have an extremely low probability.

119. You are currently in the planning process and have identiLed the risks associated with
this project and are ready for the next step. What is the next step?

Assign probability and impact values using qualitative or quantitative analysis

Use the Delphi technique to conLrm the identiLed risks

Identify the response strategies for the identiLed risks

Start working on the creation of the project schedule

Explanations:

Correct Answer is 'A'. Since you have identiLed the risks, i.e. completed the Identify Risks process, the
next step is to assign the values for probability and impact using Qualitative and/or Quantitative
analysis. Delphi technique is a technique in the information gathering tool and technique of the Identify
Risks process and is not applicable.
Risks process and is not applicable.

120. Sensitivity analysis is one of the tools involved in performing quantitative risk analysis.
What are the advantages of using sensitivity analysis?

It determines the risk to public only

It allows for independent answers

Management understands that there is a range of possible outcomes

It provides insight into the project that the PM may be lacking

Explanations:

Correct Answer is 'C'. Sensitivity analysis allows the project team to understand the effect of each
variable in the project, and allows management to see that there is a range of possible outcomes.

121. A project of $1.5 million has an adverse event that has the probability of 60% of
occurrence and a potential loss of $25,000. This represents an expected negative value of:

$1,50,000

15000

1500

90000

Explanations:

Explanation :(b) $15,000. Correct Answer is 'B'.Expected value= Probability x Outcome =0.6 x -25,000 =
-15,000
122. After reviewing the detailed analysis of a risk associated with a particular project
activity, your Project Manager along with the team decides to respond to the risk by
purchasing insurance. This could be an example of?

Active acceptance

Passive acceptance

Mitigation

Transference

Explanations:

Correct Answer is 'D'. Transference is a risk response strategy where the risk is transferred to a third
party.

123. The sponsor has asked the Project Manager to ensure that sukcient amount of
management reserve is available for his project. What does the Project Manager explain to
the team as the primary purpose of management reserve?

To take care of the risks identiLed for the project activities

To take care of the costs that management may incur to review the project activities

To take care of the risks that could not be identiLed by the project team

To take care of the risks those have been identiLed, but no response has been planned to take care
of them

Explanations:

Correct Answer is 'C'. Management Reserve is speciLcally for the Unknown Unknown" risks which could
not be identiLed in the normal circumstances by the Project Team."
124. Looking at the trend of natural disasters that have occurred in India in the past 5 years,
your company is adamant to buy an insurance against earthquakes, as the other disasters
do not seem prevalent in the area where the work is to be done. Which of the risk response
strategies does this belong to?

Mitigation

Contingency

Transference

Acceptance

Explanations:

Correct Answer is C. Risk Transfer requires shifting some or all of the negative impact of a threat, along
with ownership of the response to a third party. Transferring the risk does not eliminate it.

125. Which of the following statements is MOST incorrect?

A risk has a cause and, if it occurs a consequence

There are negative risks and positive risks

Positive risks may be viewed as opportunities and should be pursued

Negative risks must be eliminated before project plan execution

Explanations:

Correct Answer is D. Negative risks are known as threats and cannot be eliminated from the project
lifecycle. Hence the most incorrect statement.

126. Which of the following statements is MOST true?

 Risks that are assessed with scores in the lower left portion of a typical P-I matrix indicate low
probability with low impact

Risks that are assessed with scores in the lower left portion of a typical P-I matrix indicate high
probability with high impact

Risks that are assessed with scores in the upper right portion of a typical P-I matrix indicate low
probability with low impact

Risks that are assessed with scores in the upper right portion of a typical P-I matrix indicate high
probability with low impact

Explanations:

Correct Answer is A. Risks that are assessed with scores in the lower left portion of a typical P-I matrix
indicate low probability with low impact. Risks that are assessed with scores in the upper right portion of
a typical P-I matrix indicate high probability with high impact. Middle areas indicate high-low or low-high
scores.

127. Tools and Techniques for Quantitative Risk Analysis are all of the following EXCEPT,

Expert Judgment

Data gathering and representation techniques

Quantitative risk analysis and modeling techniques

Risk Register

Explanations:

Correct Answer is D. Risk Register is not a tool and technique but an input to this process

128. The recycling project manager has determined that the risks associated with handling
certain hazardous chemicals are too high. He has decided to allow an outside company
that specializes in handling hazardous materials to complete this portion of the project, and
that specializes in handling hazardous materials to complete this portion of the project, and
so has outsourced the handling of the chemicals to an experienced contractor. Which of
the following is it an example of?

Transference

Mitigation

Avoidance

None of the above

Explanations:

Correct Answer is A. Risk Transfer requires shifting some or all of the negative impact of a threat, along
with ownership of the response to a third party. Transferring the risk does not eliminate it.

129. As part of risk identiLcation, you are tasked with using a technique called SWOT.
Which of the following describes SWOT?

Analysis of: strengths, weakness, options, and timing

An elite project team that comes in and Lxes project risks and threats

Analysis of strengths, weakness, opportunities, and threats

Technique for rating risks on a scale from 1 to 100

Explanations:

Correct Answer is C. SWOT is the analysis of strengths, weakness, opportunities and threats.

130. As part of planning, you are identifying risks and impacts of risk on your project. Chris,
a project team member, is confused by what risk means. Your explanation is that a risk is a
(an) ___________________ occurrence of event that can affect the project for good or bad.:
 Uncertain

Potential

Planned

None of the above

Explanations:

Correct Answer is A. Risk is an uncertain occurrence of event that can affect the project for good or bad.

131. Which is not an example of a correctly handled Contract closure procedure?

Early termination of a contract due to bad reputation and poor delivery

Settling and Lnally closing the contract agreement

Product veriLcation by stakeholders and administrative closure

Early termination of a contract because of an immaterial breach

Explanations:

Correct Answer is D. All the stated options are examples of a correctly handled contract closure whereas
early termination due to immaterial breach is not acceptable

132. A project manager makes a narrative description of the work that must be done for her
project. This is called a

Project plan

Control chart
 Statement of work

Project objective

Explanations:

Correct Answer is C. A statement of work is the description of what the project is about and what is to
be delivered.

133. A mutually binding agreement that obligates the seller to provide the speciLed
product, service or result and obligates the buyer to pay for it, is called as -

Project Plan

Contract

Deliverable

Project charter

Explanations:

Correct Answer is B. Contract represents a mutually binding agreement that obligates the seller to
provide the speciLed product, service or result and obligates the buyer to provide monetary or other
valuable consideration.

134. The Project Management Head intends to hand over an infrastructure project to Tom,
the project manager. But within the senior management of the organization, there are varied
views about this project; some senior management people in the organization are against
taking up the project because they feel that it is better to buy the same product from an
outside source while, others feel that building the product in-house is a better option. Which
of the following tools will help Tom decide whether the product should be purchased or
developed in-house?
 Make-or-Buy Analysis

Fishbone model

Ishikawa diagram

ROI Analysis

Explanations:

Correct Answer is 'A'. Make-or-Buy analysis is a general management technique used to determine
whether particular work can best be accomplished by the project team or must be purchased from
outside sources.

135. The primary advantage of a Lxed price contract with the vendor is:

there is no risk

cost risk is higher

cost risk is lower

risk is shared by all parties

Explanations:

Correct Answer is 'C'. Fixed price contracts are awarded when you are well aware of the product. Option
A is incorrect because no contract can completely eliminate all risks. Option B is incorrect as cost risk is
lower, not higher.

136. Which type of contract would your Project Manager NOT want to use when he does
not have enough staff in the Lnancial department to audit invoices,

Fixed Price
 Cost plus Lxed fee

Time and Material

Fixed price incentive fee

Explanations:

Correct Answer is 'B'. The Cost plus Fixed Fee contract needs the most auditing as the risk is highest at
the buyer's end and also because of the size and the cost involved in these types of contracts.

137. Your colleague, Shelly has recently been promoted as the Project Manager for an
Infrastructure project. She is in the process of procurement of material for his project.
Since you have been involved in procurement activities with your project manager, Shelly
needs assistance in identifying the contract type where the seller's proLt is limited?

Cost-plus-percentage-cost contract

Cost-plus-Lxed-fee contract

Firm Fixed price contract

Fixed-price-incentive fee contract

Explanations:

Correct Answer is 'B'. Since we are talking about limited seller's proLt, Option b clearly speciLes Lxed fee
which indicates that the proLt of the seller is Lxed in this type of contract and has been decided with the
buyer in conLdence. Though Option c also appears to be the answer, in Firm Lxed contract, the buyer has
no information about the seller's proLt as the seller quotes a single value for the contract.

138. Legal contractual agreements between two or more entities to form a partnership or
joint venture , or some other agreement between the parties is known as,

Contract
 Contract

Teaming Agreements

Requirements contract

Procurement contract

Explanations:

Correct Answer is B. Teaming agreements are legal contractual agreements between two or more
entities to form a partnership or joint venture , or some other arrangement between the parties. The
agreement deLnes buyer-seller roles for each party.

139. Which is NOT an output from the 'Plan Procurements' process?

Procurement statement of work

Procurement management plan

Procurement decisions

Source Selection criteria

Explanations:

Correct Answer is C. Procurement decisions is not an Output from the said process.

140. Which of the following is a tool and technique for the 'Control Procurements'?

Records management system

Advertising

Expert Judgment
 Resource calendars

Explanations:

Correct Answer is A. Of the options listed, Records management system is the only tool and technique
for 'Administer Procurements' process.

141. Which of the following is a tool and technique used in manage stakeholder
engagements process?

Communication management plan

Change log

Issue log

Inter-personal skills

Explanations:

Answer: D - Inter-personal skills is an important technique used in the manage stakeholder engagements
process.

142. An important stakeholder in a project is at an 'unaware' state at present, i.e. he does

not know what is going on in a project. You reckon that his support could be very important.
Which of the following is the BEST way to get him to a 'supportive' state?

Send him regular reports about the project and its beneLts

Assign some work or review activity to him

Send him tickets to his favorite opera show

Give topmost priority to the issues that he has raised

Explanations:

Answer: B - Involving the stakeholders in the project work is a good way to get them to support the
project. Simply sending them reports seems a passive way of engaging.

143. Which of the following is an input to the plan stakeholder management process?

Stakeholder registers

Stakeholder management plan

Stakeholder engagement assessment matrix

Impact/Power grid

Explanations:

Answer: A - Stakeholder register is an input to the plan stakeholder management process.

144. Which of the following is a tool to assess the current and desired state of engagement
of a stakeholder on the project?

Stakeholder registers

Stakeholder management plan

Stakeholder engagement assessment matrix

Stakeholder issue log

Explanations:

Answer: C - Stakeholder engagement assessment matrix, which is a tool and technique of the Plan
stakeholder management process, is a tool to assess the engagement levels of the stakeholders on a
project.
project.

145. What is the best way to manage stakeholders which are low on power and interest?

Monitor them

No need to worry about them

Treat all stakeholders equal

Keep them informed

Explanations:

Answer: A - The strategy for stakeholders who are low on the power-interest grid is 'Monitor'.

146. Which of the following should you be most concerned about, during stakeholder
analysis?

Their interest in the project

Their in^uence on the project

Both A and B

Neither A nor B

Explanations:

Answer: C - The stakeholder can be interested in a project or be in a position to in^uence the project. As
such, both are important for the project to understand.

147. Stakeholder management involves all of the following EXCEPT:

 Identifying the stakeholders

Keeping all stakeholders happy

Analyzing stakeholder expectations

Managing stakeholder engagement

Explanations:

Answer: B - Stakeholder management involves processes required to identify stakeholders, analyze their
expectations and to develop appropriate strategies to engage them. It does not necessarily mean
keeping everybody happy (which may not even be possible).

148. Which of the following may NOT be a stakeholder to a project?

Project Manager

Project Team

Everybody in the customer's organization

Suppliers to the project

Explanations:

Answer : C - Each and every person in the customer organization may not necessarily be a stakeholder.
There may be members of the organization who are not connected with the project at all.

149. During stakeholder analysis, the project manager and team may use many different
models to classify stakeholders. The model that helps to analyze a stakeholder's ability to
impose his or her will or power and in^uence the need for immediate attention from the
project team along with the legitimacy of the stakeholder's involvement is the:
 Power / interest grid

RAM

Salience model

Stakeholder registers

Explanations:

Answer: C. The salience model addresses stakeholder power, urgency and legitimate involvement in a
project. The Power and interest grid assists in determining the level of in^uence and interest a
stakeholder may have on the planning and outcome of the project. The RAM, Responsibility Assignment
Matrix, connects project stakeholders with work breakdown structure components. The stakeholder
register is an output of stakeholder analysis.

150. An automotive oil change station was receiving complaints that their service took too
long. A coffee machine and television were installed in the waiting room and the
complaints went down. This is an example of:

Smith-Carlisle method

Creative problem solving

Analytical problem solving

Decision analysis

Explanations:

Correct Answer is B. Creative problem solving is when an innovative approach to the problem is used.
The problem was solved not by improving service but by making the area where the customers wait
more friendly and enjoyable.
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