Chapter 1 Review

Question 1

What is the definition of a project? (Choose two.)

• A group of interrelated activities that create a unique benefit to the organization
• A set of processes repeated multiple times to produce the same result
• A temporary endeavor undertaken to create a unique product, service, or result
• A process used to generate profit, improve market share, or adhere to legal requirements
• A time‐constrained activity used to bring about unique results that align with the organization’s goals

Question 2

What is the definition of operations?

• Activities that have a definitive start and end date
• Activities that are ongoing that support the organization’s business
• Activities that are unique to the organization and are temporary in nature
• Activities that are time bound

Question 3

What is the term for a group of related projects managed in a coordinated fashion?

• Life cycle
• Phase
• Process group
• Program

Question 4

Which of the following are true regarding project portfolios? (Choose two.)

• The independent projects in the portfolio may not have anything in common.
• The programs in the portfolio are related to one another.
• The programs and projects within the portfolio support the strategic goals of the portfolio.
• An organization has only one portfolio.
• Portfolios consist of programs and do not contain stand‐alone projects.

Question 5

Which of the following make up the life cycle phases according to the CompTIA exam objectives?

• Initiating, Planning, Executing, Closing
• Discovery/Concept, Initiating, Planning, Executing, Closing
• Discovery/Concept, Planning, Executing, Monitoring and Controlling, Closing
• Initiating, Planning, Executing, Monitoring and Controlling, Closing

Question 6

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?

• Organizational need
• Market demand
• Legal requirement
• Technological advance

Question 7

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?

• Feasibility study
• Alignment to the strategic plan
• Justification
• Alternative solutions
• All of the above

Question 8

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.)

• Vestige
• Relic
• Historical information
• Artifacts

Question 9

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?

• Discounted cash flow
• IRR
• NPV
• Cost‐benefit analysis”

Question 10

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.)

• This is the formula for discounted cash flows.
• This is the formula for ROI.
• You’ll need to annualize the returns since each project has a different time period.
• This is the formula for NPV.
• The returns are calculated by year and the total return for each project should be used for comparison.

Question 11

The idea behind most cash flow techniques is that money today is worth more than money in the future. What is this known as?

• Present value of money
• Future value of money
• Time value of money
• Discounted value of future money

Question 12

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
• A, B, C
• A, B, C, D

Question 13

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?

• 21 months
• 20 months
• 2 years
• 18 months

Question 14

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?

• Proceed to the project selection committee.
• Reject the project based on the analysis.
• Proceed to writing the project plan.
• Perform a feasibility study.

Question 15

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.)

• Preexisting contract
• Predetermined clients
• Prequalified vendor list
• Predetermined selection process

Question 16

Which of the following are used as project selection methods?

• A.Cash flow techniques
• B. Constrained optimization models
• C. Expert judgment
• D. Decision models
• A, D
• A, B, D
• A, B, C, D

Question 17

Your project involves implementing a software platform to manage the organization’s general ledger, budget, and financial information. The company you have engaged with recommended three implementation firms for you to choose from in helping to configure the system. What is this known as?

• Predetermined clients
• Predetermined vendor list
• Prequalified clients
• Prequalified vendor list

Question 18

Your project has expected cash inflows of $7.8 million in today’s dollars. The project’s initial investment is $9.2 million. Which of the following is true?

• The discounted cash flows are lower than the initial investment, so this project should be rejected.
• The discounted cash flows are lower than the initial investment, so this project should be accepted.
• NPV is less than 0, so this project should be rejected.
• NPV is greater than 0, so this project should be accepted.

Question 19

Which of the following are the steps required to validate a project? (Choose two.)

• Analyze the feasibility.
• Justify the project.
• Align it to the strategic plan.
• Create the business case.
• Identify and analyze stakeholders.

Question 20

Your selection committee is reviewing two projects that will attempt to improve the efficiency of your current procurement process. They have engaged key team members and subject matter experts to compare two projects. This team is charged with analyzing the current process and determining how this might change or improve, and how it will change, if the project were implemented. What is this technique called? (Choose three.)

• As is—to be
• Current state versus future state
• Project selection methodology
• Alignment to the strategic plan
• Justification
• Performance analysis

Question 21

Define the Discovery phase.

Answer 21

The Discovery/Concept Preparation phase is the first phase in in the project management life cycle. The purpose of this phase is to determine whether the project is worthwhile. This is where a business case is created.

Question 22

Define the Business Case

Answer 22

Justification for the project

The business case is a written document or report that helps executive m

Discovery phase

Question 23

Define the Initiating phase

Answer 23

Initiation is the formal authorization for a new project to begin or for an existing project to continue into the next phase.
The Initiating phase includes all the activities that lead up to the final authorization to begin the project. This process can be formal or informal, depending on the organization.

Question 24

Define the Planning phase

Answer 24

In the Planning phase, the project goals, objectives, and deliverables are refined and broken down into manageable units of work. Project managers create time and cost estimates and determine resource requirements for each activity. Planning involves several other critical areas of project management, such as communication, risk, human resources, quality, and procurement.

Question 25

Define the Executing phase

Answer 25

The Executing phase is where the work of the project is performed and monitored for adherence to the project management plan. This includes coordinating all the project members and project resources assigned to the project, reporting on status, updating project documents, managing change, and more.

Question 26

Define the Closing phase

Answer 26

The primary purpose of the Closing phase is to validate deliverables and document the formal acceptance of the project work. Once that's complete, a handoff occurs whereby the completed product or result of the project is turned over to the organization for ongoing maintenance and support.

Question 27

Define the 'Risk register'

Answer 27

A list of risks and their descriptions. ## Footnote Executing phase

Question 28

Define the 'Preliminary scope statement'

Answer 28

Project objectives are defined; business problem the project will address is stated. ## Footnote Initiating phase

Question 29

Define the 'Project charter'

Answer 29

Authorizes the project to begin. ## Footnote Initiating phase

Question 30

Define the 'Responsibility assignment matrix (RAM)'

Answer 30

Defines stakeholder responsibilities. Incorporates the use of a RACI chart. ## Footnote Initiating phase

Question 31

Define the 'Communication plan'

Answer 31

Documents the types of information needs the stakeholders have, when the information should be distributed, and how the information will be delivered. ## Footnote Planning phase

Question 32

Define the 'Project schedule'

Answer 32

Determines the start and finish dates for project activities and assigns resources to the activities. ## Footnote Planning phase

Question 33

Define the 'Scope statement'

Answer 33

Documents the product description, key deliverables, success and acceptance criteria, key performance indicators, exclusions, assumptions, and constraints. ## Footnote Planning phase

Question 34

Define the 'Project management plan'

Answer 34

Consists of all the project planning documents such as charter, scope statement, schedule, and more. ## Footnote Planning phase

Question 35

Define the 'Issue log'

Answer 35

A list of issues, containing list numbers, descriptions, and owners. ## Footnote Executing phase

Question 36

Define the 'Change log'

Answer 36

Describes change requests and their disposition for the project. ## Footnote Executing phase

Question 37

Define the 'Status report'

Answer 37

A report to stakeholders on the status of the project deliverables, schedule, risks, issues, and more. ## Footnote Executing phase

Question 38

Define 'Dashboard information'

Answer 38

An electronic reporting tool that lets users choose elements of the project to monitor project health and status. ## Footnote Executing phase

Question 39

Define 'Meeting agenda/meeting minutes'

Answer 39

Meeting agendas describe the items to be discussed and addressed at upcoming meetings, and minutes recap what was discussed and the decisions made at the meeting. ## Footnote Executing phase

Question 40

Define the 'Project closeout report'

Answer 40

Reports on the final closeout of all phases of the project ## Footnote Closing Phase

Question 41

Define 'operations'

Question 42

Define 'payback period'

Question 43

Define 'constrained optimization models'

Question 44

Define 'portfolio'

Question 45

Define 'cost of capital'

Question 46

Define 'predetermined clients'

Question 47

Define 'cost-benefit analysis'

Question 48

Define 'prequalified vendor list'

Question 49

Define 'decision model'

Question 50

Define 'program'

Question 51

Define 'discounted cash flow'

Question 52

Define 'Project Management Institute (PMI)'

Question 53

Define 'expert judgement'

Question 54

Define 'feasibility study'

Question 55

define 'return on investment (ROI)'

Question 56

Define 'Internal rate of return (IRR)'

Question 57

Define 'scoring model'

Question 58

Define 'Iterative'

Question 59

Define 'stakeholder'

Question 60

Define 'Net present value (NPV)'