MTE 114 PRACTICE QUESTIONS AND ANSWERS

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1. What is the definition of a project according to the AMERICAN National Standard ANSI/PMI99-001-
2004?

- A) A temporary endeavor undertaken to create a unique product, service, or result.

- B) A continuous process aimed at improving a service.

- C) A permanent activity conducted within a company.

- D) A task with no specified time frame for completion.

2. Which of the following is NOT a common characteristic of a project?

- A) Unique in nature

- B) Infinite timeline

- C) Definite objectives

- D) Involves risk and uncertainty

3. The “Quality Triangle” in project management is also referred to as:

- A) Time-Cost-Scope Triangle

- B) Performance Triangle

- C) Resource Allocation Triangle

- D) Risk-Management Triangle

4. In project management, which of the following phases involves developing a Detailed Project Report
(DPR)?

- A) Conceptualization Phase
 - B) Planning Phase

- C) Execution Phase

- D) Termination Phase

5. What shape does the project life cycle path take when the progress is slow at both the start and end
phases?

- A) U-shaped

- B) S-shaped

- C) J-shaped

- D) Linear

6. Which type of project is typically undertaken to facilitate the promotion and acceleration of overall
economic development?

- A) Industrial Project

- B) Development Project

- C) Commercial Project

- D) Private Sector Project

7. What is the term used for the process of presenting a project idea in a form for comparative
appraisal?

- A) Project Identification

- B) Project Execution

- C) Project Formulation

- D) Project Monitoring

8. Which of the following is NOT a focus area of pre-feasibility studies in project formulation?

- A) Market potential

- B) Estimation and budgeting

- C) Risk analysis

- D) Quality assurance
9. In project formulation, what does STEEP stand for?

- A) Social, Technological, Economic, Environmental, Political

- B) Strategic, Technological, Environmental, Economic, Political

- C) Structural, Technological, Ethical, Economic, Political

- D) Social, Technological, Educational, Economic, Political

10. In financial analysis, which method is the simplest and calculates the time required to recover the
investment?

- A) Net Present Value (NPV)

- B) Return on Investment (ROI)

- C) Pay-back Period

- D) Internal Rate of Return (IRR)

11. Which of the following is an example of a demand-based industrial project?

- A) Food product units

- B) Oil refineries

- C) Agro-processing infrastructure

- D) Metallurgical industries

12. The project management system includes all of the following EXCEPT:

- A) Project team

- B) Decision-making procedures

- C) Organizational structure

- D) Client management system

13. Which of the following is a key benefit of the project management approach?

- A) Handling assignments in an undefined time frame

- B) Providing interdisciplinary approach in handling assignments

 - C) Reducing the need for resource management

- D) Eliminating risks and uncertainties

14. What is the primary focus of environmental impact studies in project formulation?

- A) Identifying investment opportunities

- B) Analyzing technological feasibility

- C) Assessing the project’s effect on environmental resources/values

- D) Evaluating the financial viability

15. Which aspect is NOT included in technical analysis during project formulation?

- A) Technology availability

- B) Market demand

- C) Environmental considerations

- D) Staff recruitment

16. Which type of project has a higher debt-equity ratio and a longer repayment period?

- A) Industrial Project

- B) Developmental Project

- C) Commercial Project

- D) Government Project

17. What does the profitability index (PI) measure in financial analysis?

- A) Time to recover investment

- B) Return on Investment

- C) Cost-benefit ratio

- D) Economic impact

18. Which of the following project phases involves reviewing progress and managing changes?

- A) Planning Phase
 - B) Execution Phase

- C) Conceptualization Phase

- D) Termination Phase

19. In project management, which factor is typically NOT a part of project performance dimensions?

- A) Scope

- B) Cost

- C) Time

- D) Profit

20. The life cycle path that shows rapid progress after a slow start is represented by which shape?

- A) U-shaped

- B) J-shaped

- C) S-shaped

- D) Linear

21. Which of the following is a key component of a project’s scope?

- A) Project timeline
- B) Project objectives
- C) Project stakeholders
- D) Project budget

22. Which of the following project management tools is used to display the sequence of tasks in a
project?

- A) Gantt Chart
- B) Work Breakdown Structure (WBS)
- C) Critical Path Method (CPM)
- D) Project Charter

23. In project risk management, what does the term “risk mitigation” refer to?

a. A) Accepting the risk

b. B) Reducing the probability and/or impact of a risk
 c. C) Transferring the risk to another party
d. D) Ignoring the risk

24. Which of the following is NOT a type of project stakeholder?

e. A) Project sponsor
f. B) Project manager
g. C) Project team
h. D) Project product

25. What is the primary purpose of a project charter?

a. A) To define the project scope
b. B) To authorize the project
c. C) To assign project resources
d. D) To monitor project progress

26. Which of the following is NOT typically a part of the project initiation phase?
a. A) Identifying stakeholders
b. B) Creating a project schedule
c. C) Developing a project charter
d. D) Defining the project objectives

27. In which project phase is the work of the project performed to meet the project objectives?
a. A) Planning Phase
b. B) Execution Phase
c. C) Closing Phase
d. D) Initiation Phase

28. Which document is primarily used to outline the scope, objectives, and participants of a project?
a. A) Project Plan
b. B) Project Charter
c. C) Statement of Work (SOW)
d. D) Project Schedule

29. What is the most important role of a project manager?

a. A) Performing all project tasks
b. B) Managing the project team and resources
c. C) Approving project budgets
d. D) Identifying project risks
30. Which project management process group focuses on completing the work defined in the
project management plan?
a. A) Initiating
b. B) Planning
c. C) Executing
d. D) Closing

31. What does the acronym “WBS” stand for in project management?
a. A) Work Breakdown Structure
b. B) Work Benefit Scheme
c. C) Work Budget Schedule
d. D) Work-Based Strategy

32. Which project scheduling technique identifies the longest path through a project to determine
the minimum project duration?
a. A) Program Evaluation and Review Technique (PERT)
b. B) Gantt Chart Analysis
c. C) Critical Path Method (CPM)
d. D) Resource Leveling

33. Which of the following is considered a project constraint?

a. A) Project milestones
b. B) Project risks
c. C) Project resources
d. D) Project communication plan

34. In a project, which type of cost is associated with activities directly related to project work?
a. A) Direct Costs
b. B) Indirect Costs
c. C) Fixed Costs
d. D) Variable Costs

35. Which document is used to formally close a project or phase?

a. A) Project Charter
b. B) Final Project Report
c. C) Statement of Work (SOW)
d. D) Lessons Learned Document
36. In project management, what is the main objective of quality assurance?
a. A) To inspect the final deliverables
b. B) To ensure the project meets defined quality standards
c. C) To verify project risks are minimized
d. D) To monitor project costs

37. Which of the following is a common project management methodology?

a. A) Agile
b. B) Six Sigma
c. C) Lean Manufacturing
d. D) Total Quality Management (TQM)

38. In which project management phase is a project manager most likely to perform variance
analysis?
a. A) Initiation
b. B) Planning
c. C) Monitoring and Controlling
d. D) Closing

39. What is the primary focus of project scope management?

a. A) Defining and controlling what is included in the project
b. B) Managing project costs
c. C) Coordinating project resources
d. D) Tracking project risks

40. Which project management tool is often used to evaluate the progress and performance of a
project by comparing the planned and actual schedule?
a. A) Gantt Chart
b. B) PERT Chart
c. C) RACI Matrix
d. D) Project Charter

41. **Which of the following is NOT a step in the project risk management process?**
- A) Risk identification
- B) Risk analysis
- C) Risk elimination
- D) Risk monitoring
42. **Which project management approach focuses on continuous improvement and is often used
in manufacturing?
a. A) Agile
b. B) Waterfall
c. C) Lean
d. D) Six Sigma

43. Which of the following documents is essential for defining the baseline for a project’s cost,
schedule, and scope?**
a. A) Project Charter
b. B) Project Plan
c. C) Statement of Work (SOW)
d. D) Project Scope Statement

44. In project communications management, which of the following is the most formal method of
communication?
a. A) Memos
b. B) Emails
c. C) Reports
d. D) Meetings

45. What is the key purpose of a stakeholder register?

a. A) To list all project risks
b. B) To document the interests, influence, and expectations of stakeholders
c. C) To allocate project resources
d. D) To outline project objectives

46. Which of the following is a key benefit of using Earned Value Management (EVM)?
a. A) Simplifies project scope definition
b. B) Integrates project scope, schedule, and cost
c. C) Automates project scheduling
d. D) Eliminates the need for risk management

47. Which project management tool helps in identifying the root cause of a problem?
a. A) Fishbone Diagram
b. B) Gantt Chart
c. C) PERT Chart
d. D) SWOT Analysis
48. In which of the following project management methodologies are tasks managed in small,
incremental phases or sprints?
a. A) Waterfall
b. B) Agile
c. C) PRINCE2
d. D) Lean

49. Which of the following is NOT a typical content of a project status report?
a. A) Progress on deliverables
b. B) Updated project schedule
c. C) List of all project team members
d. D) Risk and issue log

50. What does the RACI matrix stand for?

a. A) Responsible, Accountable, Consulted, Informed
b. B) Reliable, Accessible, Communicated, Involved
c. C) Resources, Activities, Costs, Information
d. D) Risk, Actions, Changes, Issues

51. Which project management methodology is often associated with high ceremony and extensive
documentation?
a. A) Agile
b. B) Waterfall
c. C) Scrum
d. D) PRINCE2

52. Which term refers to the flexibility in the project schedule that allows for any delays without
affecting the project end date?
a. A) Free Float
b. B) Critical Path
c. C) Lag Time
d. D) Slack Time

53. Which of the following is a key principle of Agile project management?

a. A) Comprehensive documentation
b. B) Customer collaboration over contract negotiation
c. C) Following a strict plan
 d. D) Sequential development phases

54. Which of the following describes a project milestone?

a. A) A major point in the project lifecycle
b. B) The final deliverable of a project
c. C) The total duration of the project
d. D) A minor task in the project plan

55. What is the main objective of the project closing phase?

a. A) To start planning the next project
b. B) To complete and hand over deliverables
c. C) To monitor ongoing tasks
d. D) To define project requirements

56. Which of the following is NOT a factor considered in project cost estimation?
a. A) Labor costs
b. B) Material costs
c. C) Project sponsor’s approval
d. D) Contingency reserves

57. In project management, what is the purpose of a change control board?

a. A) To manage project budgets
b. B) To approve or reject changes to the project
c. C) To assign project resources
d. D) To create project documentation

58. Which project management process group is focused on ensuring that project objectives are
met?
a. A) Initiating
b. B) Planning
c. C) Monitoring and Controlling
d. D) Closing

59. Which document outlines the procurement needs of a project?

a. A) Procurement Management Plan
b. B) Project Charter
c. C) Stakeholder Register
d. D) Project Schedule
 60. Which of the following describes a “work package” in a Work Breakdown Structure (WBS)?
a. A) A task that cannot be further subdivided
b. B) A summary of the project’s goals
c. C) The final deliverable of the project
d. D) The smallest unit of work with a specific deliverable

Answers

1. A) A temporary endeavor undertaken to create a unique product, service, or result.

2. B) Infinite timeline

3. A) Time-Cost-Scope Triangle

4. B) Planning Phase

5. B) S-shaped

6. B) Development Project

7. C) Project Formulation

8. D) Quality assurance

9. A) Social, Technological, Economic, Environmental, Political

10. C) Pay-back Period

11. A) Food product units

12. D) Client management system

13. B) Providing interdisciplinary approach in handling assignments

14. C) Assessing the project’s effect on environmental resources/values

15. D) Staff recruitment

16. B) Developmental Project

17. C) Cost-benefit ratio

18. B) Execution Phase

19. D) Profit

20. B) J-shaped

21. B) Project objectives

22. C) Critical Path Method (CPM)

23. B) Reducing the probability and/or impact of a risk

24. D) Project product

25. B) To authorize the project

26. B) Creating a project schedule

27. B) Execution Phase

28. C) Statement of Work (SOW)

29. B) Managing the project team and resources

30. C) Executing

31. A) Work Breakdown Structure

32. C) Critical Path Method (CPM)

33. C) Project resources

34. A) Direct Costs

35. B) Final Project Report

36. B) To ensure the project meets defined quality standards

37. A) Agile

38. C) Monitoring and Controlling

39. A) Defining and controlling what is included in the project

40. A) Gantt Chart

41. C) Risk elimination

42. C) Lean

43. B) Project Plan

44. C) Reports

45. B) To document the interests, influence, and expectations of stakeholders

46. B) Integrates project scope, schedule, and cost

47. A) Fishbone Diagram

48. B) Agile

49. C) List of all project team members

50. A) Responsible, Accountable, Consulted, Informed

51. D) PRINCE2
52. D) Slack Time

53. B) Customer collaboration over contract negotiation

54. A) A major point in the project lifecycle

55. B) To complete and hand over deliverables

56. C) Project sponsor’s approval

57. B) To approve or reject changes to the project

58. C) Monitoring and Controlling

59. A) Procurement Management Plan

60. D) The smallest unit of work with a specific deliverable