Chapter 1 Test Flashcards
What is the defenition of a project? (Choose two)
A. A group of interrelated activities that create a unique benefit to the organization
B. A set of processes repeated multiple times to produce the same result
C. A temporary endeavor undertaken to create a unique product, service, or result
D. A process used to generate profit, improve market share, or adhere to legal requirements
E. A time-constrainedactivity used to bring about unique results that align with the organization’s goals
C, E
What is the definition of operations?
A. Activities that have a definitive start and end date
B. Activities that are ongoing that support the organization’s business
C. Activities that are unique to the organization and are temporary in nature
D. Activities that are time bound
B
What is the term for a group of related projects managed in a coordinated fashion?
A. Life cycle
B. Phase
C. Process group
D. Program
D
Which of the following are true regarding project portfolios? (Choose two.)
A. The independent projects in the portfolio may not have anything in common.
B. The programs in the portfolio are related to one another.
C. The programs and projects within the portfolio support the strategic goals of the portfolio.
D. An organization has only one portfolio.
E. Portfolios consist of programs and do not contain stand-alone projects.
A, C
Which of the following make up the life cycle phases according to the CompTIA exam objectives?
A. Initiating, Planning, Executing, Closing
B. Discovery/Concept, Initiating, Planning, Executing, Closing
C. Discovery/Concept, Planning, Executing, Monitoring and Controlling, Closing
D. Initiating, Planning, Executing, Monitoring and Controlling, Closing
B
You receive a request from customer service to purchase and implement a customer management system for the service-support staff. What type of need or demand does this describe?
A. Organizational need
B. Market demand
C. Legal requirement
D. Technological advance
A
Your project stakeholder is working on the business case. They ask you for some assistance. You suggest to them that the business case should include which of the following?
A. Feasibility study
B. Alignment to the strategic plan
C. Justification
D. Alternative solutions
E. All of the above
E
Preexisting contracts, prequalified vendors, and project documents such as the scope statement, schedule, risk log, and lessons learned are known as which of the following? (Choose two.)
A. Vestige
B. Relic
C. Historical information
D. Artifacts
C, D
Your project has expected cash inflows of $1.2 million in year 1, $2 million in year 2, and $4.4 million in year 3, for a total of $7.6 million in today’s dollars. Which technique was used to determine this?
A. Discounted cash flow
B. IRR
C. NPV
D. Cost-benefit analysis
A
Your selection committee wants to compare the profitability of three projects against each other to determine which should move forward. The projects do not have equal timelines. You are using this formula:
(Current Value or Gain from the Investment – Cost of Investment) / (Cost of the Investment)
Which of the following are true regarding this question? (Choose two.)
A. This is the formula for discounted cash flows.
B. This is the formula for ROI.
C. You’ll need to annualize the returns since each project has a different time period.
D. This is the formula for NPV.
E. The returns are calculated by year and the total return for each project should be used for comparison.
B, C
The idea behind most cash flow techniques is that money today is worth more than money in the future. What is this known as?
A. Present value of money
B. Future value of money
C. Time value of money
D. Discounted value of future money
C
Federico, the director of the marketing department, has approached you with an idea for a project. He has prepared a draft business case and included two alternative solutions. What should this section of the business case contain?
A. High-level description of the costs
B. Feasibility of implementing each alternative
C. Expected results of each solution
D. Description of the impacts of the alternative to the organization
E. A, B, C
F. A, B, C, D
F
Your project has projected revenues of $500,000 in year 1 and $700,000 in year 2. Your initial investment was $850,000. What is the payback period?
A. 21 months
B. 20 months
C. 2 years
D. 18 months
D
You’ve been given an idea for a project by an executive in your organization. After writing the business case, you submit it to the executive for review. After reading the business case, they determine that the project poses a significant amount of risk to the organization. What do you recommend next?
A. Proceed to the project selection committee.
B. Reject the project based on the analysis.
C. Proceed to writing the project plan.
D. Perform a feasibility study.
D
Your selection committee has approved a project that requires specialized skills that are not available in the organization. This project has a tight timeline and you are looking for ways to get resources on board as quickly as possible. Which of the following will help you speed up the procurement of resources? (Choose two.)
A. Preexisting contract
B. Predetermined clients
C. Prequalified vendor list
D. Predetermined selection process
A, C
