9. Since risk is associated with most projects, the best course of action is to:
A. cover all project risks by buying appropriate insurance
B. ignore the risks, since nothing can be done about them and move forward with the project in an expeditious manner. C. avoid projects with clear and present risks
D. eliminate all known risks prior to the execution phase of the project E. identify various risks and implement actions to mitigate their potential impact ANS: E
10. Risk management allows the project manager and the project team to: A. eliminate most risks during the planning phase of the project B. identify project risks
C. identify impacts of various risks D. plan suitable responses E. B, C and D only ANS: E
11. Which of the following types of cost are relevant to making financial decisions: A. sunk cost B. opportunity cost C. material cost D. A and C only E. B and C only
ANS: E
12. Which of the following is often overlooked in achieving effective communication? A. speaking clearly B. listening C. interpreting
D. maintaining eye contact E. manipulating the conversation ANS: B
13. The highest degrees of project risk and uncertainty are associated with the following phase of the project: A. conceptual B. execution C. cut-over
D. post project evaluation E. A and D only ANS: A
14. The auditing function that provides feedback about the quality of output is referred to as: A. quality control. B. quality planning. C. quality assurance. D. quality improvement E. All of the above. ANS: C
15. The sending or conveying of information from one place to another is the process of A. Networking B. Transmitting C. Interacting D. Promoting E. Interfacing ANS: B
16. Project life cycles provide a better means of measurement of progress and control. The four phases of a project are conceptual development, _____, _____, and _____.
A. Preliminary planning, detail planning, closeout B. Implementation, reporting, termination C. Development, implementation, termination D. Execution, reporting, finishing
E. Implementation, termination, post-audit review ANS: C
17. All of the following are categories of a milestone in a schedule except:
A. End date. B. Contract dates. C. Key events scheduled. D. Imposed dates. E. Task duration. ANS: E
18. Uncertainty refers to a situation where:
A. the outcomes are known but their probabilities are high B. the outcomes and their probabilities are known C. neither the outcomes nor their probabilities are known D. states of nature can change at any time
E. probabilities of various states of nature can change at any time ANS: C
19. Excessive flexibility in specifying requirements will _____ the likelihood of time overruns. A. Reduce. B. Eliminate. C. Double D. Increase E. Not affect ANS: D
20. Which of the following is closet to Deming's definition of Quality: A. conformance to requirements. B. fitness for use.
C. continuous improvement of products and services. D. customer focus. E. All of the above. ANS: C
21. The key purpose of project control is to: A. Plan ahead for uncertainties. B. Generate status reports. C. Keep the project on track. D. Develop the project road map. E. All of the above. ANS: C
22. Which of the following constitute Juran's \A. planning, inspection, control. B. planning, improvement, control. C. planning, organization, control. D. product, price, customer. E. design, build, deliver. ANS: B
23. Most project (and non-project) managers prefer _____ communications. A. Oral