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Project Initiation

This chapter is from the book

This chapter is from the book

Exam Prep Questions

Question 1

Which of the following must be included in the project charter?

  1. Risk analysis

  2. Budget estimates

  3. Product description

  4. Scope statement

Answer C is correct. The product description is one of the three requirements of the project charter, as described by the PMBOK. The other alternatives may appear in some organization's charters, but these vary and are not mandated by PMI. Therefore, answers A, B, and D are incorrect.

Question 2

An organization is starting a PMO. For the initial phase, the PMO director has decided to roll out the use of project charters. As a project manager, why would you be encouraged by this plan?

  1. The project charter allows you to establish the business need for the project.

  2. The project charter ensures that a preliminary budget and schedule are developed.

  3. The project charter authorizes you to use organizational resources to accomplish the objectives of the project.

  4. The project charter allows you to get senior management buy-in for your project management approach.

Answer C is correct. Answer A is incorrect because the project manager cannot establish the business need alone. Remember that the charter is issued by someone external to the team. Answer B is incorrect because the project charter does not require a preliminary schedule and budget. Answer D is incorrect because the project management approach would be defined in the project plan.

Question 3

You have created the project charter but could not get it approved by senior management. Your manager and his boss have asked you to begin the project anyway. Which of the following actions is the best thing to do?

  1. Focus on other projects that have a signed charter.

  2. Start work on critical path tasks.

  3. Update your Project Risk Log.

  4. Show your manager the impact of proceeding without approval.

Answer D is correct. Remember the importance PMI places on effective communications and on "doing the right thing." Answers A and D are incorrect because these would not be the best actions to take next. Answer B is incorrect because you have not dealt with the "lack of senior management approval" issue yet.

Question 4

What is the most important criterion when an organization chooses a project-selection model?

  1. Organizational fit

  2. Flexibility

  3. Cost

  4. Capability

Answer A is correct. The most important factor is that the project-selection method be "realistic" for the organization. It needs to be consistent with its goals and objectives, and it needs to account for the capabilities of the organization. Answers B, C, and D are all incorrect because although they are key criterion when choosing a project-selection model, they are irrelevant if the model is not first an effective organizational fit.

Question 5

A project is an ideal environment in which to apply the technique of MBO because:

  1. Top management policy and goals should flow down through the management hierarchy.

  2. Project management involves setting organizational objectives.

  3. All projects should be strongly oriented toward goals and objectives.

  4. Projects are generally handled in a matrix management environment.

Answer C is correct. The approach of goal/objective setting and periodic evaluations are common to both MBO and project management. Answer A is incorrect because projects use more than functional management hierarchy structures. Answer B is incorrect because project management is focused on executing organizational objectives and not on setting them. Answer D is incorrect in much the same way that Answer A is incorrect. You cannot rely on a top-down organizational flow in project environments.

Question 6

All of the following are examples of benefit-measurement methods of project selection except which one?

  1. Scoring models

  2. Multi-objective programming

  3. Economic models

  4. IS steering committee review

Answer B is correct. Multi-objective programming is the only constraint optimization method listed. Answers A, C, and D are all incorrect because they are not constraint-optimization methods.

Question 7

The project charter should by issued by whom?

  1. One or more functional managers

  2. The head of the performing organization

  3. A manager external to the project

  4. The CFO

Answer C is correct. The other answers could be accurate in specific situations, but their role alone does not meet the key criterion of being "external" to the project team. Answers A, B, and D are incorrect because these individuals are not external to the project.

Question 8

Which of the following is not a scope-management process?

  1. Scope planning

  2. Scope reporting

  3. Initiation

  4. Scope verification

Answer B is correct. Answers A, C, and D are incorrect because they are explicitly defined by the PMBOK as scope-management processes, including Initiation, which is the first step in the scope-management process.

Question 9

In which scope-management process are SMEs first used?

  1. Scope planning

  2. Scope definition

  3. Initiation

  4. Scope verification

Answer C is correct. Initiation is the first step in the scope-management process, and expert judgment is one of the techniques routinely utilized. Answers A, B, and D are incorrect because they would come after the Initiation process.

Question 10

From the point of initiation, why should assumptions be documented?

  1. Assumptions limit the project team's options for decision making.

  2. Assumptions might prove to be incorrect. The ability to identify these assumptions allows for baseline adjustments in case of project crisis.

  3. Assumption analysis is a key technique of risk identification.

  4. In case of schedule or budget overruns, the documentation of assumptions provides an accountability trail.

Answer C is correct. Answer A is incorrect because "constraints" limit your options. Answer B is incorrect because it's not the correct process for adjusting project baselines. Answer D is incorrect because, although it's a tempting answer based on real-world experience, it's not the answer PMI is looking for, and it would be more applicable to project controlling.

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