Business Planning and Project Management
Business Planning and Project Management
Business Planning and Project Management
(A) increases
(B) reduces
(C) remains same
(D) becomes negligible
2.Assembling project team and assigning their responsibilities are done during which phase of a project management?
(A) Initiation
(B) Planning
(C) Execution
(D) Closure
4. A process that involves continuously improving and detailing a plan as more detail become available is termed as
(A) project analysis
(B) project enhancing
(C) progressive deliberation
(D) progressive elaboration
8. The scope of the work is defined in which phase of the project management?
(A) Initiating
(B) Planning
(C) Executing
(D) Closing
9. How the project work will be carried out, monitored, and controlled? These questions are answered in which phase of the
project management?
(A) Initiating
(B) Planning
(C) Executing
(D) Closing
10. The review of the successes and the mistakes is normally held during _____ phase.
(A) initiation
(B) planning
(C) execution
(D) closure
11. The business case and the justification for the project is determined during the _____ phase.
(A) initiation
(B) planning
(C) execution
(D) closure
12. According to Olivier Mesly, the 4 P’s critical for the success of a project are:
(A) plan, processes, people, policy
(B) plan, processes, people, power
(C) plan, processes, potential, policy
(D) plan, processes, potential, power
8. (A) Initiating
9. (B) Planning
10. (D) closure
11. (A) initiation
12. (B) plan, processes, people, power
3. Assembling project team and assigning their responsibilities are done during which phase of a project management?
(A) Initiation
(B) Planning
(C) Execution
(D) Closure
ANSWER: PROJECT MANAGEMENT MCQ
1. (D) review
2. (B) reduces
3. (A) Initiation. See below ↓ for regular project management questions. Answers to the following project management quiz are
given after the fifth MCQ.
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1. The basic nature of a project is a/an _____ one.
(A) permanent
(B) temporary
(C) (A) or (B)
(D) Both (A) and (B)
2. A process that involves continuously improving and detailing a plan as more detail become available is termed as
(A) project analysis
(B) project enhancing
(C) progressive deliberation
(D) progressive elaboration
6. If any one factor of a project changes, _____ other factor(s) is/are likely to be affected.
(A) all
(B) one
(C) at least one
(D) at most one
7. Business Value =
(A) Tangible Elements
(B) Intangible Elements
(C) Tangible Elements – Intangible Elements
(D) Tangible Elements + Intangible Elements
11. The strategy used to correct resource over-allocations by balancing demand for resources and the available supply is
known as
(A) resource assignment
(B) resource leveling
(C) resource splitting
(D) resource scheduling
12. A horizontal bar chart that shows project tasks against a calendar is called
(A) milestone
(B) goal
(C) Gantt chart
(D) PERT chart
13. The statistical tool that depicts a project’s tasks and the relationships between those tasks is known as
(A) milestone
(B) goal
(C) Gantt chart
(D) PERT chart
6. The scope of the work is defined in which phase of the project management?
(A) Initiating
(B) Planning
(C) Executing
(D) Closing
17. How the project work will be carried out, monitored, and controlled? These questions are answered in which phase of the
project management?
(A) Initiating
(B) Planning
(C) Executing
(D) Closing
18. The review of the successes and the mistakes is normally held during _____ phase.
(A) initiation
(B) planning
(C) execution
(D) closure
19. The business case and the justification for the project is determined during the _____ phase.
(A) initiation
(B) planning
(C) execution
(D) closure
20. According to Olivier Mesly, the 4 P’s critical for the success of a project are:
(A) plan, processes, people, policy
(B) plan, processes, people, power
(C) plan, processes, potential, policy
(D) plan, processes, potential, power
1. Project cycle is a collection of generally sequential project phases whose description and order of occurrence are determined
by the control needs of the organisation or organisations involved in the project. (True/False)
Ans. True
2. Project management is the job of organising, coordinating, and controlling the various tasks and resources in order to
successfully complete a project. (True/False)
Ans. True
3. To maximize returns in the current cut-throat competitive environment, it is vital to manage the ____ effectively.
Ans. Projects
5. Project Human Resource Management ensures that the most appropriate manpower with necessary skills is deployed for
effective execution of the desired project. (True/False)
Ans. True
6. Project Integration Management ensures that various elements of a project are properly integrated and coordinated for
smooth flow of information and resources. (True/False)
Ans. True
7. A ____ of activities that are used to achieve the project’s goals or objectives is known as the project life cycle.
Ans. Rational order
8. In the ____ phase of the project life cycle the work gains momentum.
Ans. Quick Momentum
9. The ____ manages the four basic elements of a project: resources, time, money, and scope.
Ans. Project Manager
10. Life cycle of a project manager ____ with the development life cycle.
Ans. Overlaps
11. Project management is a rationally planned and organised effort to achieve a specific goal. (True/False)
Ans. True
12. Project closure involves releasing the final product to the customer, handing over the project documentation, manuals,
source code, and network layouts. (True/False)
Ans. True
13. Project management consists of interacting processes namely ____, ____, process interactions, and ____ which are organised in
groups.
Ans. Project processes, process groups, customisation
15. ____ and ____ refer to the mechanism applied to the inputs to create the desired outputs.
Ans. Tools and techniques
16. The most important problem faced in the implementation phase of a project is a delay in execution. (True/False)
Ans. True
17. The system of monitoring and control is more effective when, along with the time-frame, there is the linkage between the
physical work to be performed in each activity and the financial expenditure to be incurred. (True/False)
Ans. True
18. Project management provides the project managers and team members with the principles they require to effectively meet
the needs of the customer. (True/False)
Ans. True
19. Scope, cost, and schedule are some of the parameters used for project negotiation. (True/False)
Ans. True
20. Five dimensions that must be managed on a project are ____, ____, cost, ____, and staff.
Ans. Scope, quality, schedule
22. ____ is a continuous and repetitive process involving screening, documentation, validation, ranking and approval of viable
project ideas for an organization.
Ans. Project identification
23. ____ study focuses on answering the essential questions such as; should we proceed with the proposed project idea? What
are the benefits and drawbacks of the proposed project idea?
Ans. Pre-feasibility
24. The function of project initiation is to describe all the parameters of a project and establish the suitable project management
and excellence environment necessary to complete the project. (True/False)
Ans. True
25. The project manager works with the project sponsor to identify the necessary resources and team members needed to
further develop the key project parameters – Cost, Scope, Schedule, and Quality (CSSQ). (True/False)
Ans. True
26. Various choices of ____ that are available for constructing and developing the project should be examined.
Ans. Techniques
27. ____ should be made of all cost factors so as to reflect on all relevant investment and operational costs of the project
including contingencies.
Ans. Realistic estimates
28. Feasibility analysis is the first stage in the process of project development. (True/False)
Ans. True
29. The purpose of the analysis is to examine the desirability of investing in pre-investment studies. (True/False)
Ans. True
30. The technical feasibility aspect of a project relates to the earning capacity of the project. (True/False)
Ans. False
31. ____ is a financial term to describe a business or project where the sales revenue is equal to total expenses.
Ans. Break-even
32. If the break-even point lies ____ anticipated demand, implying a loss on the product, and then the product may be
discontinued or, may receive additional advertising and/or be re-priced to increase demand.
Ans. Above
33. In the ____ stage, of project identification the project ideas generated above are screened and a preliminary exercise is
conducted to weed out the bad or unviable ideas.
Ans. Screening
34. Good plans always do not allow for flexibility to adapt to changing circumstances. (True/False)
Ans. False
35. The planning and scoping should be such that the project manager can assess every stage of the project and the quality of
the deliverable of the project at every stage.(True/False)
Ans. True
36. The ____ then submits the proposal to get it investigated on its viability, evaluation and selection
Ans. Client
37. The project team documents its charge in the form of a ____, which is based on the project proposal and business case.
Ans. Project charter
38. ____ builds on the work done in project initiation through the development of a project plan.
Ans. Project planning
39. ____ is where most of the resources are applied/expended on the project.
Ans. Project execution and control
40. The ____ of project closeout the assessment is to document the best practices and lessons learned for use on future projects.
Ans. Primary purpose
41. The players in project management are the individuals and the organisations. (True/False)
Ans. True
42. Other reported advantages include a sharper orientation toward results, better interdepartmental coordination, and higher
worker morale. (True/False)
Ans. True
44. Subsequent to preparing ____, the team plans the project schedule and budget.
Ans. Work Breakdown Structure
45. If all the steps of project planning are performed successfully, ____ and planning become effective and the ideal outcomes
are achieved.
Ans. Scoping
46. The entire process of a project may be considered to be made upon a number of sub-processes placed in different stages
called the Work Breakdown Structure. (True/False)
Ans. True
47. WBS is produced by identifying the key elements, breaking each element down into component parts and continuing to
breakdown until manageable work packages have been identified. (True/False)
Ans. True
49. All projects are basically ____, requiring huge money for completion and earning no return till their successful completion.
Ans. Capital projects
50. The purpose of project planning is to identify various areas of the project work and the influencing factors, and
subsequently define the boundaries of the project performance. (True/False)
Ans. True
51. ____ structures are typically used in businesses that primarily sell and produce standard products and seldom conduct
external projects.
Ans. Functional-type organisation
52. In a ____, the employees work for different projects in a team-like structure.
Ans. Project-type organisational structure
54. In the matrix-type organisation, ____ provide the resources needed and the ____ is responsible for the project results.
Ans. The functional managers, project manager
56. A project leader or manager is expected to be completely accountable for his team members and meeting the team’s
targets. (True/False)
Ans. True
57. Project leader role will require an individual with strong management skills. (True/False)
Ans. True
58. The Project Leader is the person responsible for the overall project. (True/False)
Ans. True
59. ____ is the oldest and simplest type of organization where the line of command is fulfilled from top to bottom.
Ans. Line organisation
60. ____ have the principal responsibility of achieving the target goals of the firm and have the decision-making authority.
Ans. Line managers
62. In large organisations, project management shall be of line type function where the project manager shall have ____ and has
total formal control over the division he or she heads.
Ans. Full line authority
64. In ____ style, a leader issues orders without any discussion with members.
Ans. Coercive
65. In ____ style, project manager shares his or her vision with the team but permits them to use their respective ideas to come
up with a solution.
Ans. Authoritative
66. High-performance standards are set for team members in____ style.
Ans. Pace-setting
67. Lack of motivation among employees and low quality of production occurs in ____.
Ans. Theory X
68. The smoothing method reduces the scale of conflict by making differences seem less important. (True/False)
Ans. True
71. Forcing method of resolving conflict is used when one person has authority over another and uses it. (True/False)
Ans. True
72. A ____ needs to possess excellent analytical and organizational skills to manage a project team.
Ans. Project Manager
73. Diversity management is a management strategy to promote and maintain a ____ environment in the organization
Ans. Positive workplace
74. A strong ____ program encourages the development of skills and talents of the employees.
Ans. Diversity management
A program is a group of
(A) related projects
(B) unrelated projects
(C) A and B
(D) A or B
The answer is: (A) related projects
1. Purchase ___ describes a product in terms of its design characteristics which includes dimensions, weight, shape, size, surface
finish, physical and chemical properties, and performance.
Ans. Specification
3. Purchase order becomes a legal contract only after it has been accepted by the vendor or any of his authorised agents.
Ans. True
4. Follow-up is a corrective measure that seeks to foresee the problem and preempt late delivery. (True/False)
Ans. False
5. Follow-up includes internal follow-up with departments like the store, finance, inspection, and project groups and external
follow-up with ___.
Ans. Suppliers
6. The ___ conditions include purchase order no., name and address of the supplier, delivery address of the goods, description of
the goods, product specifications, quantity, etc.
Ans. Specific
8. Fixed price applies to unstable labour market conditions and uncertain specifications and production schedule.
Ans. False
9. ___ of contract may be done due to default by the vendor in failing to perform as agreed in contract while making deliveries,
the convenience of the buyers, or mutual consent.
Ans. Cancellation
10. The process of contract planning includes the preparation of ___ plans.
Ans. Resource
11. ___ is generally applicable under stable market conditions and in the case of firm specifications and production schedule.
Ans. Fixed price
12. ___ includes monitoring the progress of manufacturing of equipment, it’s quality, packaging, and associated documentation.
Ans. Order fulfillment
13. ___ .includes identifying the required number of suppliers out of the possible ones.
Ans. Shortlist suppliers
14. A procurement process starts with the ___ of required material and types of equipment.
Ans. Identification
15. An efficient project management can avoid many of these problems by proper planning and control of procurement and
efficient ___ materials management.
Ans. Post-procurement
16. ___ performance measurement is an ongoing process that involves monitoring and reporting project progress with respect
to predetermined objectives.
Ans. Pre-established
17. ___ consists of web space over Internet/intranet/extranet, shared by an authorised group of users to discuss their common
objective.
Ans. Wiki
18. ___ are age old methods to communicate project information in many organisations.
Ans. Written reports
19. Communication is the process by which information is exchanged between individuals through a common system of
symbols, signs, or behaviour.
Ans. True
20. The PMIS should support the full range of the life cycle including project analysis and post-project review. (True/false)
Ans. True
23. ___ include priorities in running different applications and the security measures to achieve optimal and secure operations of
the system.
Ans. Procedures
24. Hardware also includes communication equipment that facilitates fast transmission and reception of the text, pictures,
sound, and animation in the form of electronic data.
Ans. True
26. Productivity is calculated by adding the value added by the product or service by the value of labour and capital cost.
Ans. False
27. The measurement of performance is a tool that provides qualitative information about products, services, and the processes
that produce them.
Ans. False
28. Productivity is always a relative measure and expressed as the ratio of ___ to inputs.
Ans. Net outputs
29. If the productivity is measured for the total enterprise, it is termed as ___ productivity.
Ans. Total factor
30. When productivity is measured for each factor, it is termed as ___ productivity.
Ans. Partial factor
31. Performance coefficient of productivity can be measured in financial as well as physical terms.
Ans. True
32. ___ is an important tool for the assessment of a system or service according to the measurements specified
Ans. Performance evaluation
34. In management ___ of any service, process or activity typically refers to “determining its worth”.
Ans. Evaluation
35. ___ involves a comparison of the actual cost incurred on the project with the budgeted cost of the project for a given time
period to determine the variants.
Ans. Variance analysis
36. ACC represents the actual cost incurred for accomplishing the work performed during a particular time period.
Ans. False
37. ACWP represents the actual cost incurred for accomplishing the work performed during a particular time period.
Ans. True
38. ___ represents the estimate for the additional cost required for completing the project.
Ans. ACC
39. The ___ is an integral part of project management and is a necessary task of the project manager.
Ans. Control
40. ___ is a list prepared separately for each agency after the resource scheduling process.
Ans. Work-to list
42. A PIR can be conducted as a formal audit or as a workshop involving the project ___
Ans. Participants
43. Work-to list is usually prepared to cover only a few weeks ahead.
Ans. True
44. ___ networks highlight which tasks are critical for a project to stay on schedule and which can slide without affecting the
completion date of the project.
Ans. Critical path
45. ___ is the final network that has been arrived at after the resource rescheduling process, satisfying resource constraints and
shows all activities.
Ans. Detailed network
46. Two common methods to evaluate the performance objectives are variance analysis and the ___ method.
Ans. Earned value
47. The ___ is a useful tool that allows the calculations of cost and schedule performance measures including cost variance,
schedule variance, cost and time over-runs for a project.
Ans. Earned Value Method (EVM)
48. Frequency of monitoring depends on nature, duration, and importance of projects and stakeholders need. (True/False)
Ans. True
50. The variance report may be presented in tabular form or ___ form.
Ans. Graphical
51. The ___ is an estimate of the future based on current progress and other factors.
Ans. Forecast
55. The project manager should ensure that the people are released in a fair and proper manner.
Ans. True
56. The decision of project termination affects all the ___ of the project and can put some negative impact on the organisation’s
growth.
Ans. Stakeholders
57. There should be a clear ___ for project termination, and it should be communicated to all the stakeholders.
Ans. Strategy
58. There should be periodical ___ with the control board before taking the decision.
Ans. Review meetings
59. The ___ of project success and termination should be clear and communicated to every stakeholder.
Ans. Criteria
60. In case the project has to be terminated, there should be a clear commitment of the control board and high-level
management towards the project management team in order to enable the team to ___ the project closure procedures.
Ans. Follow
61. Traditionally project follow-up stage is considered as a part of the project ___ phase.
Ans. Completion
62. After delivery or completion of the project, the ___ has to be evaluated.
Ans. Staff performance
63. ___ projects often have low visibility of benefits but very high costs, and also very high stress and risk levels too.
Ans. ICT (Information and Communications Technology)
64. The project activities like drawings cannot be performed by using project management software. (True/False)
Ans. False
65. The project management software package can be handled with minimum training. (True/False)
Ans. True
66. The price of PC-based software is under ___ which is affordable for an organisation.
Ans. $500
67. Resource allocation problem is concerned with ___ activities in such a way so as to find the shortest project schedule.
Ans. Scheduling
69. ___ allows the user to view the information in the desired order, such as pay rates from highest to lowest or in alphabetical
order.
Ans. Sorting
70. ___ enables the user to select only certain data that meet some specified criteria.
Ans. Filtering
72. ___ is a tool for examining and scheduling more complex projects.
Ans. Gantt charts
73. When a project is underway, Gantt Charts helps to monitor whether the project is on schedule or not.
Ans. True