Questions Dump 2 Flashcards

Question

You are one of the members of the project prioritization and selection committee in your organization. The selection team is debating between two projects, which are both considered to be very important. The organization has to make an initial investment of $250,000 with expected cash inflows of $75,000 in the first year and $25,000 per quarter thereafter for the first project. The second project has a payback period of thirty-five months. Based solely on this information, which project should the selection committee recommend? A. First project as it has a smaller payback period B. Second project as it has a smaller payback period C. None of them since both of them have the same payback period D. Either of the two projects since payback period is not important

Answer 1

Answer: A Explanation: 1. The first project will have the cash inflows of $75,000 in the first twelve months, and for the rest of the investment ($250,000– $ 75,000 = $175,000) it will take seven quarters to recapture it; thus, for the first project, the total payback period is 12 + 21 (each quarter has three months; thus, seven quarters have 7 * 3 = 21 months) = 33 months. The first project has a smaller payback period than that of the second project; thus, we should select the first project.

Answer 2

Answer: B Explanation: Work Performance Data describes how far along a deliverable is and how it is progressing against the plan. It can include several work performance data of interest, such as deliverable status, schedule progress, resource utilization, costs incurred, and quality standards.

Answer 3

Answer: B Explanation: A Work Authorization System is not a tool & technique of the project monitoring & controlling process. It is a subset of the Project Management Information System (PMIS) and is considered a component of the Enterprise Environmental Factors, which are inputs in the Monitor and Control Project Work process. It is a formal, documented procedure to describe how to authorize and initiate work in the correct sequence at the appropriate time and is used throughout the executing process group.

Answer 4

Answer: A Explanation: The project SOW should contain the business need, product scope, and strategic plan.

Answer 5

Answer: A Explanation: The cash inflow is $30,000 per quarter, so in the first year the project will get back $120,000 in four quarters. In the first two years, the project will have a return of $240,000. The remaining investment will be $600,000 – $ 240,000 = $360,000. It will take four quarters or twelve months to have it back at a rate of $90,000 per quarter in the third year. The total amount of time it will take to get the entire investment back will be 24 months + 12 months = 36 months, or three years.

Answer 6

Answer: D Explanation: All these activities are performed in the Monitor and Control Project Work process.

Answer 7

Answer: D Explanation: The number of years and cost are not relevant as they are accounted for in the calculation of Net Present Value (NPV). You simply select the project with the highest NPV; in this case, it is Project C that has a NPV of $80,000.

Answer 8

Answer: C Explanation: The project manager is in the Develop Project Charter process in Project Integration Management. The output of this process is a Project Charter, which is used to formally initiate a project. In this case, the project manager is using a Statement of Work (SOW) to understand the product requirements and descriptions. The project will be initiated under the contract, and the SOW was given to the project manager by the client.

Answer 9

Answer: B Explanation: Project integration is a key responsibility of the project manager.

Answer 10

Answer: A Explanation: The subsidiary plans are usually included to support the overall project management plan and are developed for the purpose of providing more detailed information, guidelines, and control processes for specifically defined project elements or planning components. These are the outputs of some of the other planning processes associated with scope, time, cost, quality, human resources, communications, risk, procurement, and stakeholder management. Additional plans such as change management, process improvement, and configuration management plans, can also be added to the project management plan.

Answer 11

Answer: A Explanation: You should release the team once the lessons learned are documented and added to the organizational process assets. Most contracts have payment terms that allow for some period of time before full payment is required; thus, the last thing you do on the project is close the contract. When closing the project, the order should be get formal acceptance, write lessons learned, release the team, and close the contract.

Answer 12

Answer: D Explanation: A live document such as Lesson Learned Register should be regularly updated throughout the project for the benefit of the entire organization. It should be an excellent source of information on mistakes and areas for improvements for current and future similar projects.

Answer 13

Answer: B Explanation: Determining the Net Present Value (NPV) is done during the Develop Project Charter process in the initiating phase, not during the Closing Project or Phase process.

Answer 14

Answer: D Explanation: Completion of the product scope is measured against the product requirements to determine successful fulfillment. The project requirements, project objectives, and the Project Scope Statement are associated with project scope.

Answer 15

Answer: C Explanation: A Work Breakdown Structure (WBS) is the foundational block to the initiating, planning, executing, monitoring & controlling, and closing phases. Normally presented in chart form, it is a deliverable-oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables. It provides a structure for hierarchal summation of cost, schedule, and resource information.

Answer 16

Answer: B Explanation: The most appropriate thing to do in this kind of situation is to find out the root cause of the problem, but the option is not presented here. Based on the information provided, there is no reason to find out the details and try to convince the sponsor to add the work (C & D). The project manager should inform the sponsor, but the best course of action will be to inform the stakeholders that the work could not be added. Even though there is no impact on the schedule, there may be impact on other areas. A project manager should not implement a change request without performing an impact analysis and must get the approval for the change from the Change Control Board.

Answer 17

Answer: C Explanation: Verified deliverables are the deliverables that have been completed as per the documented scope and checked for defects by the project team members in the Control Quality process. These deliverables are inputs in the Validate Scope process and are given to the customers and stakeholders for their acceptance.

Answer 18

Answer: D Explanation: Verifying the correctness of work is associated with the Control Quality process.

Answer 19

Answer: D Explanation: Note that in this kind of situation you should always try to gather as much information as possible if the time allows. You simply should not say no without knowing the details of the change and its possible impact on the project (C). The client only mentioned that they wanted a change but did not provide you with any description of it. You may inform management (A) and also have a meeting with the team if their inputs are needed (B) but not before understanding what the change is all about.

Answer 20

Answer: C Explanation: Note that we do not usually include the activities in the WBS, especially for the large projects, even though we decompose the WBS work packages to get our activities during the Define Activities process in time management. Once the activities are defined, sequencing is done in the Sequence Activities process. Note that WBS has no particular sequence to it.

Answer 21

Answer: A Explanation: Constraints specify the limitations and restrictions, such as constraints on time, budget, scope, quality, schedule, resources, and technology that a project faces. By specifying a time limit and technology compliance, the sponsor is limiting the options for the project.

Answer 22

Answer: B Explanation: The output of the Validate Scope process is the customer acceptance of the project deliverables. This process is performed during the monitoring & controlling process group. To get approval of the phase deliverables, it is done at the end of each project phase in addition to other points to get approval for the interim deliverables. Both the Control Quality and Validate Scope processes can be performed simultaneously, but Control Quality is usually performed prior to Validate Scope. Control Quality verifies correctness of the work, whereas Validate Scope confirms completeness. Control Quality is focused on measuring specific project results against quality specifications and standards, whereas Validate Scope is mainly focused on obtaining acceptance of the product from the sponsor, customers, and other stakeholders. It is not an input to the Develop Project Management Plan or an output of the Control Quality process.

Answer 23

Answer: B Explanation: Scope planning should be performed prior to the Control Scope process. A change in one control process impacts the others; thus, the Control Scope process is integrated with other control processes.

Answer 24

Answer: D Explanation: A project manager is responsible for prioritizing the most critical issue to concentrate on. The situation here does not really specify whether the senior engineer is playing a vital role in the project or not. “Gold Plating,” or giving customers extra, is not actually required in the project. The project manager should evaluate the current situation and then determine if the project will require additional time or not to complete. The most critical item for the project manager is to ensure full compliance with the city and construction industry standards.

Answer 25

Answer: D Explanation: Inspection is used as a tool & technique in the Validate Scope process, not in the Define Scope process.

Answer 26

Answer: C Explanation: You should review the Project Charter and make sure that you have inputs from all key stakeholders in order to avoid confusion and unnecessary change requests in the future. You should then concentrate on creating the Project Scope Statement, the WBS, and the project plan.

Answer 27

Answer: C Explanation: Inspection includes activities such as measuring, examining, and verifying to determine whether work and deliverables meet requirements and product acceptance criteria. Inspections are sometimes called walkthroughs, reviews, product reviews, and audits.

Answer 28

Answer: A Explanation: Resource leveling is used to produce a resource-limited schedule by letting the schedule slip and cost increase in order to deal with a limited amount of resources, resource availability, and other resource constraints. It can be used when shared or critically required resources are only available at certain times, are in limited quantities, or when resources have been over allocated. Fast- tracking is the technique of doing critical path activities in parallel when they were originally planned in series. Crashing is the technique of adding additional resources to a project activity to complete it more quickly. The critical path is the longest path through a network diagram and determines the shortest time to complete the project as well as any scheduling flexibility. It is not the project schedule, but it indicates the time period within which an activity could be scheduled considering activity duration, logical relationships, dependencies, leads, lags, assumptions, and constraints.

Answer 29

Answer: C Explanation: External dependencies are driven by circumstances or authority outside the project and must be considered during the process of sequencing the activities. Internal dependencies are based on the needs of the project and are mostly under the control of the project team. Mandatory dependencies are mandatory and unavoidable dependencies that are inherent in the nature of the work or are contractually required. They are like laws of nature and are also called “hard logic.” Discretionary dependencies are also called “preferred logic” or “soft logic” as they are the preference of the project planner and the team members. These dependencies may be determined by best practices or by local methodology and may vary from project to project.

Answer 30

Answer: A Explanation: The project manager should now focus on developing the preliminary schedule and get the approval from the team members. Finalizing the Project Scope Statement should have been completed prior to completing the WBS. The team members have completed the network diagram, which suggests that the activities sequencing is also completed. Since the project schedule is an input to risk management, developing the risk management plan should be done once the schedule is completed.

Answer 31

Answer: C Explanation: Analogous estimates take a top-down approach, and the overall project estimate is usually given to the project manager from the management or the sponsor. It is usually done during the early phase of the project when not much information is available. It is less accurate even though it is less costly and less time consuming. In a bottom-up approach, one estimate per activity is received from the team members.

Answer 32

Answer: B Explanation: The project is definitely at high risk because activities on critical path and near critical path can be delayed anytime causing the entire project to be delayed. Having more than one critical path and several near-critical paths does not necessarily mean that more resources and additional budget will be required to complete the project. There is no valid reason to terminate the project just because it is at high risk of schedule delay.

Answer 33

Answer: C Explanation: As a project manager, you should not be coming up with individual activity estimate. The team members will be working on the activities and should come up with the estimates for their activities. Estimates should also not be coming from senior management or customers but they may let you know their expected completion date for the project. You will be able to identify that some activities may take place concurrently by refrying to your Network Diagram. If you just add up all the activity estimates without considering the sequence and concurrent activities, your estimate will not be correct.

Answer 34

Answer: D Explanation: Removing an activity may save you time but your customer will be very unhappy if you do so. Removing resources will not really save you any time. You can’t add additional resources as you have no access to it. Since most of the risk items are closed and you have discretionary or preferential dependencies, you should be fast-tracking or working on some of the activities concurrently.

Answer 35

Answer: C Explanation: The project Cost Management Plan is a component of the overall project management plan, and it defines how the project cost will be planned, managed, expended, and controlled throughout the project life cycle.

Answer 36

Answer: D Explanation: Earned value analysis provides a means to determine cost and schedule variances, not to develop the project cost baseline.

Answer 37

Answer: C Explanation: The primary concern for Project Cost Management is to determine the cost of resources, not the amount to complete the project activities.

Answer 38

Answer: B Explanation: Here we have BAC = $80,000 We know that EV = BAC * Actual % Complete So EV = BAC * 40 percent completion = $80,000 x 40 percent = $32,000 Also PV = BAC * (Time Passed/Total Scheduled Time) And PV = $80,000 * (4 months/8 months) = $40,000 So SPI = EV/PV = 32,000/40,000 = 0.8 SPI is less than one, which suggests that the project is behind schedule.

Answer 39

Answer: C Explanation: Here we have BAC= $80,000 and AC = $30,000 We know that EV = BAC * Actual % Complete So, EV = BAC * 40 percent completion = $80,000 * 40 percent = $32,000 So, CPI = EV/AC = 32,000/30,000 = 1.066 CPI is more than one, which suggests that the project is under budget.

Answer 40

Answer: C Explanation: Control thresholds are usually expressed as percentage deviations from the cost baseline that the sponsor or stakeholders are willing to allow before any action is required.

Answer 41

Answer: D Explanation: TCPI calculates the performance that must be achieved in order to meet financial or schedule goals and determines the status on the remaining work with respect to the funds remaining. If the cumulative CPI falls below the baseline plan, all future work must be performed at the TCPI to achieve the planned BAC.

Answer 42

Answer: C Explanation: Expected future period operation costs are considered to be ongoing costs and should not be part of the project costs.

Answer 43

Answer: B Explanation: The project manager determines, manages, and controls the contingency reserves, which will address the cost impact of the risks remaining (residual risks or known unknown risks).

Answer 44

Answer: D Explanation: The project manager is expected to come up with a realistic estimate that does not include padding. The project manager also should not simply reduce the estimate whenever asked by the sponsor or clients. If the project manager must reduce the estimate, she needs to explore other options such as cutting scope, reducing quality, or replacing expensive resources with lower-cost resources. In this case, Lori should inform the sponsor the activities to be cut in order to reduce the estimate by ten percent.

Answer 45

Answer: C Explanation: A rough order of magnitude (–25 percent to 75 percent) is an approximate estimate made without detailed data. This type of estimate is used during the formative stages for initial evaluation of a project’s feasibility. In this example, $75,000 and $200,000 are –25 percent to +75 percent of $150,000.

Answer 46

Answer: C Explanation: The budget for the first six components is 6 * $1,500 = $9,000, and the budget for the remaining nine components is 9 * $1,400 = $12,600. So, BAC = $9,000 + $ 12,600 = $21,600 We know PV = BAC * Planned % Complete So, PV = 21,600 * 40 percent = $8,640 We have a total of fifteen components and so far, completed five components. EV = BAC * (Work Completed/Total Work Required) So, EV = $21,600 * 5/15 = $7,200 So, SPI = EV/PV = 7200/8640 = 0.833

Answer 47

Answer: D Explanation: The first step should be to get as much information as possible about the damages in the foundation by evaluating the cause and size of the damage and the amount needed for the fix. You can take other actions as appropriate once you have all the details.

Answer 48

Answer: A Explanation: If current variances are considered as atypical and you anticipate that similar variances will not occur in the future, the correct EAC formula is EAC = AC + (BAC – EV). In this case, BAC = $90,000 EAC = $30,000 + ($90,000 – $35,000) = $85,000 c

Answer 49

Answer: C Explanation: Quality control is utilized to monitor and record results during execution of quality activities.

Answer 50

Answer: B Explanation: Phil Crosby popularized the concept of the cost of poor quality, advocated prevention over inspection and “zero defects,” and defined quality as conformance to specification (project produces what it was created to produce).

Answer 51

Answer: C Explanation: A quality audit is done in the Manage Quality process, and quality metrics, which are the outputs in the Plan Quality Management process, are used as inputs in the Manage Quality process.

Answer 52

Answer: B Explanation: A Pareto chart illustrates which causes of error are most serious. It is displayed as a histogram and shows frequency of error according to cause. The concept is based on the 80/20 rule: “80 percent of the problems come from 20 percent of the causes;” thus, it is important to pay close attention to the 20 percent of critical causes in order to resolve 80 percent of the problems. A Pareto chart: – Helps focus attention on the most critical issues – Prioritizes potential causes of the problems – Is used to determine priorities for quality improvement activities – Separates the critical few from the uncritical many.

Answer 53

Answer: C Explanation: Products that are produced at an acceptable level of quality and meet the desired requirements of the customer but have limited functionality and features compared to similar products are referred to as low grade.

Answer 54

Answer: D Explanation: Quality management is integrated with many other project planning processes, especially cost and time management.

Answer 55

Answer: B Explanation: Machinery maintenance and calibration is an appraisal function that is included in the cost of conformance. All other costs listed are costs of nonconformance.

Answer 56

Answer: D Explanation: A product that is produced at a high-level of quality but does not include many of the features of comparable products is referred to as low grade. A low grade product with limited features may be acceptable, but a low quality product or service is unacceptable.

Answer 57

Answer: C Explanation: Manage Quality, not Plan Quality Management process ensures that processes and procedures are giving us the intended results and we are meeting quality objectives.

Answer 58

Answer: A Explanation: Quality control measurements are relevant quality level and compliance measurements. These measurements are inputs to the Manage Quality process. Change requests are outputs for both the Manage Quality and Control Quality processes, and verified deliverables are outputs for the Control Quality process. Quality Reports are the result of the Manage Quality process.

Answer 59

Answer: A Explanation: Proprietary quality management methodologies such as Six Sigma, Lean Six Sigma, Quality Function Deployment, and CMMI® are used as tools & techniques in the Plan Quality Management process.

Answer 60

Answer: C Explanation: Standard deviation is a measurement of range around the mean.

Answer 61

Answer: B Explanation: Attributes are those items associated with the actual physical product or deliverable. Failure rate, defect frequency, reliability, cost control, number of defects, availability, test coverage, and on-time performance are product attributes, but desirability is not.

Answer 62

Answer: D Explanation: The previous project manager did not complete the planning; thus, planning should be completed first followed by executing. Identifying risks and quality standards are both done in the planning process group, but quality standards are identified prior to risk identification in the project.

Answer 63

Answer: A Explanation: Verified deliverables are Outputs of the Control Quality process and inputs to the Validate Scope process.

Answer 64

Answer: C Explanation: Measuring specific project results against quality standards and required metrics is part of the Control Quality process. In this situation, there is a high probability that a change request will be submitted to Perform Integrated Change Control process.

Answer 65

Answer: D Explanation: Gold plating is the practice of making changes to a project that are beyond the original agreed-upon scope. Gold plating is time consuming and expensive in most cases. Gold plating is generally seen as a poor practice. Despite best intentions, the added work is often risky. Gold plating may take longer than anticipated, pushing a project past its due date. The additional changes can even have a negative effect on the existing functionality. Advanced quality thinking doesn’t recommend gold plating as a best practice. The project manager should make sure that team members are not providing extra features, extra functionalities, or higher quality than expected in the project.

Answer 66

Answer: C Explanation: The Quality Management Plan documents quality objectives, expected quality level, quality standards, metrics, and other quality related items. The defined level of required thickness tolerances would be documented in the Quality Management plan.

Answer 67

Answer: A Explanation: The Project Scope Statement, not the Requirements Documentation, describes project deliverables and the work required to create them in detail as well as the deliverables description, product acceptance criteria, requirements assumptions and constraints, and exclusions from requirements.

Answer 68

Answer: A Explanation: The team members are gaining a better understanding of the product of the project to create the Project Scope Statement by performing the product analysis. The team must have a product description before they can perform product analysis. The level of quality desired is analyzed in the plan quality management, not in product analysis. The multi-criteria decision analysis is a technique to evaluate and rank ideas. This technique uses a decision matrix based on factors such as uncertainty, expected risk levels, cost and benefit estimates, and time estimates to quantify requirements.

Answer 69

Answer: D Explanation: Nothing in this is suggesting that you may need to cut cost, add resources, or terminate the project. Not having complete requirements will make it difficult to measure as requirements are used to measure the completion of the product of the project.

Answer 70

Answer: D Explanation: Fast-tracking is the technique of doing critical path activities in parallel when they were originally planned in series.

Answer 71

Answer: A Explanation: The duration of three modules is 10 * 3 = 30 days, and the remaining two modules is 2 * 15 = 30 days. The first phase of the project will take 30 + 30 = 60 days, or approximately between fifty-five and sixty-five days.

Answer 72

Answer: D Explanation: The schedule forecasts are outputs of the Control Schedule process, not tools & techniques.

Answer 73

Answer: A Explanation: An analogous estimate is usually done during the early phase of the project when not much information is available about the project. It is less accurate even though it is less costly and less time consuming. In a bottom-up approach, one estimate per activity is received from the team members; it requires significant time to develop. A heuristic estimate is based on rule of thumb. A PERT estimate, also known as a weighted average estimate, is usually associated with specific project activities and requires significant time to develop as well.

Answer 74

Answer: C Explanation: The duration estimates are outputs in the Estimate Activity Durations process. This process should be performed before the Develop Schedule process. Adding additional time or padding the estimate is a common practice in this process, so the project manager should make sure that the estimates from the team members are realistic. It is important that all estimates in this process should use a common work unit/period.

Answer 75

Answer: D Explanation: The best course of action will be to update the project schedule and other relevant plans to reflect the new estimate.

Answer 76

Answer: A Explanation: Your team has created the WBS, WBS Dictionary, and activity list and has submitted the activity durations. The next step should be to sequence the activities by creating a network diagram using the precedence diagramming method. Determining high- level project assumptions and constraints is done as part of project initiation and is completed much earlier. The Develop Schedule process follows the Sequence Activities process. Note that sequencing activities can be done before or after the activity duration estimation is done.

Answer 77

Answer: C Explanation: The Control Schedule process is the next process after the Develop Schedule process, but all the activities of the Develop Schedule process are not completed yet. Once the schedule is developed, it should be compressed, finalized, and approved by the stakeholders. Then you should start controlling the schedule.

Answer 78

Answer: C Explanation: The project network diagram represents activities and their logical relationships, dependencies, and sequence; thus, the network diagram will best capture the impact of the delay on the project schedule. The work breakdown structure is a deliverable- oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables, but it does not focus on the duration of the project activities. The risk register would show an increase in project risk but would not help to determine the impact of a delay on the project schedule. An issue log will also capture the root cause, person assigned, due date, and other factors but will not give out much information about the impact of the delay on the project schedule.

Answer 79

Answer: D Explanation: A Gantt chart or bar chart is a time-phased graphical display of activity start dates, end dates, and durations. It is useful for tracking progress and reporting to the team and can be easily modified to show the percentage of completed work. As the project progresses, bars are shaded to show which activities are now completed. The work breakdown structure is a deliverable-oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables, but it does not focus on the duration of the project activities. A milestone chart is similar to a bar chart but only shows major events. It is a good tool for reporting to management and customers. This type of chart is reserved for brief, high- level presentations as too much detail may be undesirable and distracting to senior management. A network diagram is a schematic display of the sequential and logical relationships of the project activities. It shows dependencies and the order in which activities in a project must be performed.

Answer 80

Answer: C Explanation: The client is making a request by offering gifts; thus, you should reject the gifts as it is a violation of the PMI code of ethics and professional conduct. A project manager is expected to be honest and should not engage in dishonest behavior with the intention of personal gain or at the expense of others. If it is customary in that country to offer gifts, you may accept the gift without agreeing to the client’s request of dedicated connection. Not communicating with the specific client may impact the project.

Answer 81

Answer: C Explanation: You should never bribe even though it may help you win a project. Your best course of action will be to deny the offer and disclose the incident to higher management.

Answer 82

Answer: B Explanation: in this you have to use the PERT formula which is (O+4*R+P)/6 and find the optimistic number. The gives you the answer to the formula which is 6 days and you will need to figure out the other components. In the the pessimistic is given which is 10, the realistic is 6 and you have to find out the optimistic number. Plug the numbers into the formula which looks like this: (O+4*6+10)/6=6. Based on this equation the optimistic is equal to 2.

Answer 83

Answer: C Explanation: The risk register will list both positive and negative risks not the risk management plan. Risk management plan will include the risk breakdown structure that will categorize risks, roles and responsibilities for the team members, and the methodology they would use to perform the risk processes on the project.

Answer 84

Answer: D Explanation: Since Mary has just been assigned the project, we can assume that the project charter is done. Once the charter is complete the next process would be to identify your stakeholders before completing any of the planning processes which are the other 3 choices.

Answer 85

Answer: D Explanation: in the process of managed team the project manager has to resolve issues and conflicts amounts project team. This is done using the tool interpersonal and team skills, particularly conflict management. Acquire team is not a process in the PMBOK. Control resources is a process that involves physical resources not human resources. Control scope is about preventing scope creep and ensuring the project meets the scope.

Answer 86

Answer: C Explanation: Rolling wave planning is a tool used in the process of define activities to breakdown work in the near future in details and work farther into future more high-level. Forward Planning and requirements future planning are not real tools used in the process of define activities. Decomposition is a tool that’s used to breakdown the activities currently.

Answer 87

Answer: B Explanation: An affinity diagram is used to group large number of ideas to be analyzed. A prototype is a functional model of a product, given to customers for their feedback. Decomposition is a tool used to breakdown work into more detail activities. The requirements documentation would be the output of this process of collect requirements not a tool.

Answer 88

Answer: A Explanation: A Resource Breakdown Structure (RBS) looks like a typical organizational chart, but it is organized by types of resources. An RBS can help track project cost as it ties to the organization’s accounting system. An Organizational Breakdown Structure (OBS) is similar to a company’s standard organizational chart that looks like a WBS but only includes the positions and relationships in a top- down, graphic format. It is arranged according to an organization’s existing departments, units, or teams with their respective work packages. Any operations department such as manufacturing or engineering, can identify all of its project responsibilities by looking at its portion of the OBS. A Responsibility Assignment Matrix (RAM) cross-references team members with the activities or work packages they are to accomplish. One example of a RAM is a Responsible, Accountable, Consult, and Inform (RACI) chart, which can be used to ensure clear divisions of roles and responsibilities. A text-oriented position description, or role-responsibility-authority form, is particularly important in recruiting. It is used to describe a team member’s position title, responsibilities, authority, competencies, and qualifications in detail.

Answer 89

Answer: D Explanation: The team members are in the Norming stage as they are adjusting work habits and behaviors to work as a team. They begin to start trusting and working together.

Answer 90

Answer: D Explanation: The objective of collocation, or the war room, is to build a better relationship among the team members, enhance their ability to perform as a team, identify concerns and issues in the project, and figure out solutions for those issues. The idea is not to point fingers at other team members or get involved in any kind of argument.

Answer 91

Answer: B Explanation: Recognition and Rewards are used as a tool & technique in the Develop Team process, not in the Plan Resource Management process. Hierarchical-type charts, a Responsibility Assignment Matrix (which is a matrix-type organizational chart), and Organizational Theory all are used as tools & techniques in the Plan Resource Management process.

Answer 92

Answer: A Explanation: The Resource Management Plan identifies the training needs and certification requirements of the team members. One example of a responsibility assignment matrix is a RACI (Responsible, Accountable, Consult, and Inform) chart, which can be used to ensure clear divisions of roles and responsibilities. Training and Certification Management Plan is a fake term. A Resource Breakdown Structure (RBS) looks like a typical organizational chart, but this one is organized by types of resources. An RBS can help track project cost as it ties to the organization’s accounting system.

Answer 93

Answer: C Explanation: A project manager can kill the team morale by consistently rewarding the same individual repeatedly as it can be perceived that the project manager is playing favorites. If the team members believe that the rewards are win-lose and that only certain team members will be rewarded, it may demoralize them. In this kind of situation, the project manager can consider team awards, which is a win-win as all the team members are recognized for their contributions.

Answer 94

Answer: C Explanation: Theory Z was introduced by Dr. Willam Ouchi. This theory is concerned with increasing employee loyalty to his/her organization. This theory emphasizes the well-being of employees both at work and outside of work, it encourages steady employment, it leads to high employee satisfaction and morale, and overall it results in increased productivity.

Answer 95

Answer: D Explanation: As per Tuckman’s model, in the Performing stage, the team functions as a well-organized unit. They are interdependent and work through issues smoothly and effectively. The role of the project manager is mainly overseeing and delegating.

Answer 96

Answer: B Explanation: There are several sources of conflict, including schedule priorities, scarce resources, personal work style, cost, and other elements, but it’s important to note that personality differences are not the root cause of conflict; in fact, it’s rarely the case. The three main causes of project conflicts are schedule, project priorities, and resources, as approximately 50 percent of all conflicts come from these three sources.

Answer 97

Answer: B Explanation: Compromising is bargaining to some level of mutual (dis)satisfaction to both parties. Parties are asked to lose something to gain something. Smoothing is emphasizing areas of agreement and downplaying differences of opinion. Forcing is exerting one opinion over another. Collaborating focuses on working to combine multiple differing perspectives into one shared perspective and results in a win-win situation for all parties.

Answer 98

Answer: D Explanation: The most effective solution in this type of situation will be to create ground rules and introduce them to the team members. Ground rules identify acceptable and not acceptable behaviors on the project and try to minimize the negative impacts of bad behaviors. Some of the ground rules that will be applicable in this situation include the following: – Methods of how conflict should be resolved – Ways to treat sensitive data in the project – Methods of notifying the project manager about difficulties, issues, and concerns – Acceptable ways to interrupt someone talking at a meeting – Methods to stop talking over a team member inappropriately – Rules for joining meetings and consequences of being late.

Answer 99

Answer: C Explanation: The Responsibility Assignment Matrix (RAM) shows who will do the work and a Resource Histogram shows the number of resources used in each time period that a RAM doesn’t show.

Answer 100

Answer: D Explanation: Emotional Intelligence is the capacity to be aware of, control, and express one's emotions, and to handle interpersonal relationships judiciously and empathetically utilizing observation, interpersonal skills, and communication. By making team members feel important and valued, you tried to bring out the best in the team members. In this case, you showed empathy and also worked out a plan for the team member to fulfill her job responsibilities.

Answer 101

Answer: B Explanation: As a project manager, you should always deal with a situation and try out different options prior to asking help from the sponsor. You should also be considerate to the needs of the entire organization, not only your ones.

Answer 102

Answer: D Explanation: You are trying to make a great working condition better by renting a new office space and upgrading the team members’ titles. Herzberg classified needs under two much larger categories of motivators (opportunity for advancements and achievement, variety of work, sense of responsibility, recognition, and professional growth) and hygiene (compensation, personal life, working conditions, supervisors, security, status, and relationships with peers, subordinates, and supervisors). Destroying hygiene factors can destroy motivation but improving them under most circumstances will not improve motivation. Hygiene factors are not sufficient to motivate people, and motivating agents provide the best positive reinforcement. Motivating people is best done by rewarding people and letting them grow.

Answer 103

Answer: D Explanation: Project reporting, Information Management System, and Communications Methods are tools & techniques in the Manage Communications process; only project communications are the outputs.

Answer 104

Answer: B Explanation: Your team currently has eleven team members including you; thus, the number of communication channels is calculated by using the formula: # of Channels = n* (n – 1)/2 = 11 (11 – 1)/2 = 55 If you add four more resources, then you will have 11 + 4 = 15 team members. So the number of channels will be 15 (15 – 1)/2 = 105 So you will have 105 – 55 = 50 more channels after adding the new resources.

Answer 105

Answer: D Explanation: Earned Value Management provides an integrated view of project performance and compares work performed with work planned to be performed and the planned cost of work with the actual cost of work. Progress reports provide information about what has been accomplished so far; a trend report examines project results over time to see if performance is improving or deteriorating. A status report describes where the project now stands regarding performance measurement baselines in cost, schedule, scope, and quality.

Answer 106

Answer: C Explanation: The methods used to transfer information to, from, and among project stakeholders can vary significantly. Factors such as availability of technology, expected project staffing, urgency of the need for information, project environment, duration of the project, and other things may play a significant role in determining the method that may be used to transfer information among project stakeholders. Stakeholder identification will provide a list of stakeholders affected by the project and does not play much of a role in this situation.

Answer 107

Answer: C Explanation: ‘A’ and ‘B’ will not help too much in this kind of situation as there is no indication here that the right people were not invited to the meeting or the meeting was not scheduled in advance. ‘D’ is not a rule for a meeting. People discussing topics at random suggests that there was no set agenda for the attendees to follow. Establishing and Imposing ground rules will restrict people from talking at the same time and interrupting each other or remaining busy over the phone.

Answer 108

Answer: B Explanation: Stakeholder communications requirements are determined during communications requirements analysis. The intention is to identify information that is most valuable to stakeholders. The Stakeholder Engagement Plan is an output to Plan Stakeholder Engagement process, and it defines an approach to manage stakeholders and to increase support for and minimize negative impacts on stakeholders throughout the entire project life cycle. A trend analysis examines project results over time to see if performance is improving or deteriorating. Value analysis or value engineering is associated with product analysis, and it helps to find a less costly way to do the same work without loss of performance.

Answer 109

Answer: A Explanation: The trend report examines project results over time to see if performance is improving or deteriorating.

Answer 110

Answer: A Explanation: Accommodating to planned and ad hoc information requests is part of the Manage Communications process.

Answer 111

Answer: C Explanation: Usually the project manager reports on the progress of the project in a status meeting rather than demoing any prototype or reviewing any technical documentation.

Answer 112

Answer: B Explanation: Acknowledge means the receiver has received the message, but it does not mean that the receiver necessarily agrees with the message. Noise or communication blockers play a vital role in effective communication. 55 percent of all communication is nonverbal, and verbal communication is not more important than nonverbal communication. Encoding is translating ideas and thoughts.

Answer 113

Answer D: Explanation: Communication technology will take into account urgency of the need for information, expected project staffing, and duration of the project, but not reason for the distribution of information.

Answer 114

Answer: A Explanation: Status reports address the current condition of a project, including risks and issues. Progress reports refer to work that has been completed during a reporting period, and forecasts refer to future scheduled work. The quality report is a made-up term.

Answer 115

Answer: B Explanation: Some stakeholders will need information distributed even after the product has been accepted as they want to get information about the closure of the project and the contract. The Manage Communications is an executing process. Manage Communications carries out not only predetermined communication but also handles responses to unplanned requests from stakeholders. The listed communication methods are used in Manage Communications; thus, letter ‘B’ is the correct answer.

Answer 116

Answer: A Explanation: Even though the Communications Management Plan is a part of the Project Management Plan, the best option here will be the Communications Management Plan, where the purpose for communication, communication requirements, method, time frame and frequency for distribution, person responsible for communication, methods for updating the communications management plan, and other communication related items can be found.

Answer 117

Answer: D Explanation: PMIS is an automated tool used to gather, integrate, and disseminate project information.

Answer 118

Answer: A Explanation: A Communication Management Plan includes purpose of communication, information needs of each stakeholder or stakeholder group, stakeholder communication requirements, and format, method, time frame, and frequency of the distribution of required information.

Answer 119

Answer: A Explanation: A risk event is the actual occurrence of the risk, such as an equipment failure. Risk probability is the likelihood that a risk event may occur. The amount at stake refers to the impact or consequence of the risk on one or more project objectives including scope, schedule, cost, and quality.

Answer 120

Answer: C Explanation: These are all examples of risk mitigation. Risk mitigation simply means a reduction in the probability and/or impact of an adverse risk event to an acceptable threshold. Transferring is shifting the negative impact of a threat, along with the ownership of the response, to a third party to make it their responsibility. An example of this would be insurance bonds, warranties, guarantees, and contracts. Avoidance is eliminating the threat by eliminating the cause or changing the project management plan. An example of this would be using a slower but reliable technology instead of a cutting-edge one to avoid associated risk. Since it is seldom possible to eliminate all risks and also since the cost or impact of avoid, transfer, and mitigate is too high, acceptance can be the preferred strategy. It indicates that the project team is simply accepting the risk and will continue with the project.

Answer 121

Answer: A Explanation: Stakeholders may be great contributors for identifying potential risks in the project. You should have involved other stakeholders instead of only working with the team members on risk management activities.

Answer 122

Answer: D Explanation: Since you are taking action to lower the probability and impact of the risk, you are mitigating the risk.

Answer 123

Answer: A Explanation: This is an example of assumptions analysis. This is an analysis of the validity of assumptions, hypotheses, and scenarios developed in project initiation to identify risks from inaccuracies, incompleteness, and inconsistencies of assumptions. The assumptions that turn out to be invalid should be evaluated, qualitatively and quantitatively analyzed, and planned for just like other risks.

Answer 124

Answer: B Explanation: The Data Analysis Technique, such as Root Cause Analysis, Assumption and Constraint Analysis, and SWOT analysis, are used as tools & techniques in the Identify Risks process.

Answer 125

Answer: C Explanation: A list of identified risks will be included in the risk register, not in your Risk Management Plan.

Answer 126

Answer: B Explanation: Workarounds, unplanned responses developed to deal with the occurrence of unanticipated risk events, are not valid ways of reducing risks in a project.

Answer 127

Answer: A Explanation: Audits and Data Analysis Techniques such as Technical Performance Analysis and Reserve Analysis are tools & techniques used in the Monitor Risks process. Strategies for negative risks or threats such as escalate, avoid, transfer, mitigate, and avoid are used as tools & techniques in the Plan Risk Responses process.

Answer 128

Answer: A Explanation: Risk avoidance is the elimination of the threat by eliminating the cause or changing the project management plan. This is an example of avoidance since you are changing your travel plan to eliminate the threat of traffic delay.

Answer 129

Answer: D Explanation: The expected monetary value is calculated by multiplying the probability with the impact. The EMV for the opportunity is 55 percent * $120,000 = $66,000 and for the threat is 45 percent * $55,000 = $24,750. The total EMV in this case is $66,000 – $24,750 = $41,250 profit.

Answer 130

Answer: A Explanation: Since it is seldom possible to eliminate all risks and also since the cost or impact of avoid, transfer, and mitigate is too high, acceptance can be the preferred strategy. It indicates that the project team is simply accepting the risk and will continue with the project. The team has decided to go for passive acceptance, which requires no action.

Answer 131

Answer: C Explanation: Assumption and Constraint Analysis is a Data Analysis Technique that is not used as an input but as a tool & technique in the Identify Risks process.

Answer 132

Answer: B Explanation: The Plan Risk Management process establishes the basis to approach, plan, and execute risk management activities throughout the life of the project and develops the risk management plan. The risk management plan does not include a description of the responses to risks or triggers. Responses to risks are documented in the risk register as part of the Plan Risk Responses process.

Answer 133

Answer: C Explanation: Risk items will be identified throughout the project life cycle. The team will identify most of the project risk items in the Identify Risk process and newly emerging risks will be identified in the Monitor Risk process.

Answer 134

Answer: D Explanation: The technical background, financial capability, and relevant experience of the vendor are all very important factors while outsourcing, but we should be very concerned about the sensitive and confidential proprietary data of our organization that we may need to turn over to the vendor.

Answer 135

Answer: C Explanation: Make-or-buy analysis is concerned with determining whether a product can be cost effectively produced in- house or whether it should be purchased, leased, or rented. While performing this analysis, we must consider indirect as well as direct costs, availability in addition to related risk, schedule, etc. Source selection criteria is developed and used to provide sellers with an understanding of the buyer’s need and also to help them in deciding whether to bid or make a proposal on the project. Later on, it also helps to evaluate sellers by rating or scoring them. The procurement Statement of Work (SOW) describes the subject item in sufficient detail to allow prospective sellers to determine offerings (bids, proposals, etc.). It documents details of the work to be performed by the seller under a contract.

Answer 136

Answer: D Explanation: This time-based fee plus cost of materials contract is used for smaller amounts and shorter times and requires little or no defined scope of work. In a T & M contract, the seller pays a rate for each of the people working on the team plus their material costs. The “time” part means that the buyer pays a fixed rate for labor, usually a certain number of dollars per hour. And the “materials” part means that the buyer also pays for materials, equipment, office space, administrative overhead costs, and anything else that has to be paid for.

Answer 137

Answer: D Explanation: Seller proposals are inputs to the Conduct Procurements process for obtaining seller responses, selecting a seller, and awarding the procurement, usually in the form of a contract. This is an official response to the buyer’s procurement document, including the details the buyer is looking for, how the work will be performed, and pricing. Procurement documents, work performance information, and contracts all are used as inputs for administering procurements in the monitoring & controlling process group.

Answer 138

Answer: D Explanation: Any type of corporate policy or formal and official procurement procedure is an organizational process asset.

Answer 139

Answer: B Explanation: There is a cost overrun of $145,000 - $120,000 = $ 25,000. Seller’s fee will be decreased by $25,000 * 20% = $5,000. Thus, seller final fee will be $8,000 - $5,000 = $3,000. The minimum fee was set to $4,000. So, in this case, the final fee will $4,000, not $3,000. Buyer’s total price will be $145,000 + $4,000 = $149,000.

Answer 140

Answer: B Explanation: Plan Procurement Management is the process of documenting project purchasing decisions, specifying the approach, defining selection criteria to identify potential sellers, and putting together a Procurement Management Plan.

Answer 141

Answer: C Explanation: A project can be terminated any time for a certain cause or simply for convenience of the buyer. If a project is terminated before the work is completed, you still need to document the lessons learned and add them to the organizational process assets. There are always important lessons that you can learn when a project goes seriously wrong even when you did nothing to contribute to the disaster.

Answer 142

Answer: C Explanation: Unless there was a problem processing or making payment, the payment system will not be a part of the procurement audit. The other remaining choices will be included in the procurement audit and captured in the Lessons Learned Register.

Answer 143

Answer: D Explanation: Control Procurements is the process of ensuring the seller’s performance meets contractual requirements, ensuring that both seller and buyer meet their contractual obligations, and ensuring that legal rights of both seller and buyer are protected. The focus here is to manage the relationship between buyer and seller, monitor contract performance, and make appropriate changes and corrections. Procurement performance reviews, inspections and audits, and performance reporting are tools & techniques used in the Control Procurements process.

Answer 144

Answer: B Explanation: A bidder conference is intended to assure that no seller receives preferential treatment and that all sellers have a clear, common understanding of the procurement (technical requirements, contractual requirements, etc.). The goal of the bidder conference is to make sure that all questions are submitted in writing and issued to sellers as an addendum to the procurement document so that all sellers respond to the same scope of work, there is no collusion among sellers and/or buying agents, and sellers do not save questions for later private meetings in order to gain competitive advantage. Independent estimates are often prepared by the procuring organization to judge whether the statement of work was adequate in its description or that the seller fully understood or responded fully to the statement of work; these estimates also help the organization check the reasonableness of the seller’s response or cost proposal and proposed pricing. The goal of procurement negotiation is to achieve clarification and agreement on the structure and requirements of the contract prior to signing.

Answer 145

Answer: D Explanation: Termination for convenience is a contract clause that permits the buyer to terminate a contract at any time for a cause or convenience. Usually, there will be specific conditions associated with the execution of this clause. A letter of intent is a letter expressing the intention of the buyer to hire the seller. It is not a contract; thus, it does not have any legal binding. Most of the time, the buyer gives a letter of intent to the seller in the following circumstances: – Completion of contract negotiation and finalization will take significant amount of time, but the project needs to be initiated as soon as possible. – The seller has no option but to hire people and order equipment in order to meet contractual requirements before the contract is signed. A breach/default is not meeting contractual obligation by the seller or the buyer. A material breach is so severe that it is not possible to continue work under the contract.

Answer 146

Answer: C Explanation: Usually a Statement of Work (SOW) document contains a clear, complete, and concise description of performance, design, functional, reporting, format and support requirements, not a procurement document. Well- designed procurement documents help in easier comparison of seller responses, more complete proposals, more accurate pricing, and decrease in the amount of changes in the project. Procurement documents may contain all the work that is to be completed, as well as terms, conditions, and evaluation criteria. You want the seller to be as innovative as possible when they come up with the design and methods for completing your project. It may contain request for proposal (RFP), invitation for bid (IFB, or request for bid, RFB), and request for quotation (RFQ).

Answer 147

Answer: D Explanation: It is not mandatory for the buyer to come up with the SOW all the time. The seller can come up with the SOW through requirements collection tools & techniques. Also, seller can update the buyer’s SOW and get it reviewed and approved.

Answer 148

Answer: A Explanation: In noncompetitive forms of procurement, usually a seller is selected from a list of qualified sellers interested in and capable of doing the job. Even though competition can result in the selection of a better seller and decreased price, there is no reason for going through the entire procurement process unless law requires it. Two types of noncompetitive forms of procurement are described below: Single source (preferred seller): In this case the buyer has worked with the seller before, and due to good experience and other convenience with the seller, the buyer does not want to look for another seller. Sole source (only seller): In this case the seller may be the only one in the market or may have a patent, thus limiting the option of selecting other sellers.

Answer 149

Answer: D Explanation: Under normal circumstances, if you follow the proper project management processes, you should have good definition of scope. In this situation, you should have a quality procurement statement of work. You need good scope definition as well as incentives as you need the seller to share your need for speed. A quality procurement document alone will not ensure speed. Incentives will bring the seller’s objectives in line with the buyer’s and would be most useful in this case. The “Time is of the Essence” clause states that any delay will be considered as a material breach as delivery dates are extremely important. The “Retainage” clause states that in order to ensure full completion, an amount of money, usually 5 to 10 percent, is withheld from each payment and paid in full once the final work is completed. These two clauses may help but would not be as effective as incentives.

Answer 150

Answer: A Explanation: It is important to understand that once signed, a contract is legally binding unless it is in violation of any applicable law. The failure to perform or make payment usually does not alter the fact that the contract is binding. The contract will remain in binding if only one party considers that the contract is no longer valid. However, if both parties negotiate and agree to terminate the contract, the contract should move into the Control Procurements process.

Answer 151

Answer: C Explanation: In a Cost Plus Fixed Fee (CPFF) contract, the fee is usually paid on a continuous basis during the life of the project. It is unreasonable and unrealistic not to authorize any unexpected cost overrun. Cutting scope would not be a way for sellers to make additional profits as it decreases the profit for this type of contract. The best way is to audit all invoices and make sure that you are not charged for items not chargeable to the project.

Answer 152

Answer: A Explanation: During Conduct Procurements, negotiation occurs to finalize the terms and conditions of the contract. In this process, a contract or agreement is created that is approved by both parties through much negotiation. In order to settle any pending disputes or concerns, negotiation will also be used in the Control Procurements process. During Conduct Procurements, negotiation occurs to finalize the terms and conditions of the contract. In this process, a contract or agreement is created that is approved by both parties through much negotiation. In order to settle any pending disputes or concerns, negotiation will also be used in the Control Procurements process.

Answer 153

Answer: A Explanation: A Stakeholder Engagement Assessment Matrix is a tool to assess the engagement levels of the stakeholders on a project. The matrix can be utilized to compare the actual engagement levels to the planned levels. Any discrepancies can be examined, and communication to adjust the engagement levels can then be implemented.

Answer 154

Answer: B Explanation: All these activities typically belong to the Manage Stakeholder Engagement process.

Answer 155

Answer: D Explanation: Stakeholder identification will persist throughout the project life cycle. As the project proceeds through each phase, additional stakeholders may become involved while others will be released from the project. Some stakeholders will be identified during the initiating phase in the project charter, while other stakeholders may only be interested in the end product and will be involved only at the closing phase.

Answer 156

Answer: A Explanation: A: Giving stakeholder extras or gold plating should always be avoided. Gold plating is not the preferred way of meeting and exceeding stakeholder expectations.

Answer 157

Answer: C Explanation: Before you take any other step, you should validate the information received from the team member.

Answer 158

Answer: D Explanation: A Data Representation technique such as Stakeholder Engagement Assessment Matrix is used to classify stakeholders as per their level of engagement in the project during the Plan Stakeholder Engagement process.

Answer 159

Answer: D Explanation: The Stakeholder Register will be used as an input to the Collect Requirements, Plan Resource Management, Plan Risk Management, Identify Risks, Plan Quality Management, and Plan Communications Management processes. It is not an input to the Develop Project Charter and Perform Integrated Change Control processes. The Develop Project Charter process is executed prior to the Identify Stakeholder process where the Stakeholder Register will be developed.

Answer 160

Answer: B Explanation: In order to minimize numerous changes later in the project, you need to identify all stakeholders and their needs as early as possible. Stakeholder analysis will be a more complicated task if there are numerous stakeholders and an effective way to determine their needs must be identified.

Answer 161

Answer: A Explanation: Keeping stakeholders happy and satisfied is the main objective of the stakeholder management. Maintaining a robust communication, keeping a positive relationship, and establishing a good coordination will collectively contribute to achieve stakeholder satisfaction.

Answer 162

Answer: D Explanation: All Work Performance Data comes from executing process group. In this case, Work Performance Data comes as an output of the Direct and Manage Project Work, an executing process.

Answer 163

Answer: D Explanation: The strategies to interact with the stakeholders are included in the Stakeholder Management Plan, not in the Stakeholder Register.

Answer 164

Answer: D Explanation: As the Engineering Department Head this person may have significant influence on other stakeholders in his department. You need to reassure this key stakeholder about your product since he is not open to changes or he will use his influence to disrupt your project.

Answer 165

Answer: A Explanation: You are obligated to report any illegal activity to the appropriate authority.

Answer 166

Answer: C Explanation: One of the mandatory standards in the PMI code of ethics and professional conduct is responsibility. Responsibility is the act of making and taking ownership of our decisions, admitting our mistakes, and being responsible for our decisions and actions. As a project manager, you must take responsibility for the failure in identifying the risk and evaluate the impact to develop the risk response plan. Once you have the detail on the risk item, you can have a discussion with the customer. Also, you may escalate the risk to the sponsor if the risk is beyond your control.

Answer 167

Answer: D Explanation: You are obligated to report any PMI code of ethics and professional conduct violation to PMI.

Answer 168

Answer: D Explanation: One of the mandatory standards in the PMI code of ethics and professional conduct is fairness. Fairness includes making decisions impartially and objectively and avoiding favoritism and discrimination against others. As a project manager you need to make sure that there will be no discrimination against others based on, but not limited to, gender, race, age, disability, nationality, or sexual orientation. You also need to make opportunities equally available to all qualified candidates. Your best course of action will be to recommend not opening the branch office in this country.

Answer 169

Answer: D Explanation: You have violated the PMI code of ethics and professional conduct. As a project manager, you should be honest about the experience and expertise of your organization.

Answer 170

Answer: C Explanation: Since there is a potential conflict of interest, you should discuss the relationship with the sponsor and evaluation team. It will be up to the evaluation team and sponsor to decide whether you should disassociate yourself from the bidding process or not.

Answer 171

Answer: C Explanation: You should accept the gift because if you decline and reciprocate the gesture, it can severely affect your relationship with the customer. You should also immediately inform your management so that your integrity will not be questioned later on.

Answer 172

Answer: D Explanation: You need to work in the best interest of your client and try to save money and time for them if possible by exploring the option of using the existing infrastructure rather than installing new towers and POPs. Even if the nondisclosure agreement is not legally enforceable, you are ethically bound to comply with it. The best course of action will be to have a discussion with the previous client and seek permission to share the information on the existing infrastructure. Seeking guidance from the PMO will not be essential since approval from the PMO to share the information will not make it acceptable.

Answer 173

Answer: B Explanation: In this case, the fee has a valid purpose and should not be considered a bribe. You should pay the urgent fee of $750 and obtain the trade license.

Answer 174

Answer: C Explanation: You cannot simply refuse to manage the project because you do not agree with the time and cost estimations of the sponsor. As a project manager, you are expected to present truthful and accurate information regarding time, cost, and other project objectives. So you should submit your detailed time and cost estimations and justification for the longer duration and additional budget. If your justification is reasonable, the sponsor should agree with your argument. Continuing with the project with unrealistic time and cost expectations will be a recipe for failure. Having an urgent meeting with the client will not be appropriate in this situation.

Answer 175

Answer: A Explanation: At first you should have a discussion with the team member to find out why she is meeting with the unidentified stakeholder. Reporting the incident to the functional manager will not be appropriate until you identify any problem.

Answer 176

Answer: D Explanation: You should decline the request as the video game is the intellectual property of your organization.