Project Management Quiz - 2

1. What approach should we use when starting a project?
[A]As uncertainties are always higher in the beginning of the project, do not bother about reducing uncertainties
[B]Though uncertainties are always higher in the beginning of the project we should try to reduce them
[C]We must ensure that uncertainties are almost nil before starting the project
[D]We can modify our plan as the project moves forward as often as necessary



2. The maximum value addition can be made in the initial phase of the project life cycle. The type of resources one should deploy in the early phase of the project life cycle should be __________
[A]Best suited for the kind of job in hand
[B]Ordinary as we need best resources in the execution phase
[C]It does not matter
[D]Can not say



3. The amount of stake is minimum in which phase of the project life cycle?
[A]Close Out
[B]Execution
[C]Initiation
[D]Planning



4. Need life cycle comprises of the following three phases
[A]Emergence, articulation and recognition
[B]Emergence, articulation and feasibility
[C]Articulation, viability and emergence
[D]Recognition, articulation and appointing project manager



5. The business case is an important document in a project as it discusses the _______ of the project
[A]Who
[B]When
[C]Why
[D]Where



6. The Business case is authorized by the -------------------- and owned by the -------------
[A]Top management, Sponsor
[B]Top management, client
[C]Sponsor, sponsor
[D]Sponsor, project manager



7. What is not an advantage of Payback period method?
[A]It is simple to use
[B]It gives a better picture as the cash flow is discounted
[C]Is good as an initial filter
[D]Provides a good idea of the company's liquidity position



8. The Internal Rate of Return (IRR) shows
[A]The interest rate at which the project's Net Present Value will be zero
[B]The project's expected profitability not in absolute terms but as a percentage
[C]A higher IRR shows a better return on money
[D]All of the above



9. The Net Present Value
[A]Is used to show what a future cash flow will be worth in today’s monetary terms
[B]The higher the NPV the more profitable the project
[C]As the discount rate is increased the NPV will become lower
[D]All of the above



10. You are working in a large multi-national construction company and are required to categorize the different projects undertaken. To do this you would classify the project’s by their
[A]Industry
[B]Size
[C]Cost
[D]Any of the above



11. When we say the project has conformed to specifications it means
[A]The project provided what it was supposed to provide
[B]No changes were made in the design during project implementation
[C]The specifications were finalized by the project manager
[D]The project provided more then what the client asked for



12. Who is responsible for ensuring the project has funds?
[A]The project manager
[B]The bankers
[C]The client
[D]The project sponsor



13. Why is stakeholder analysis done?
[A]To identify all the project's stakeholders
[B]To assess the source of funding for the project
[C]To ensure stakeholders' requirements are properly considered in project planning
[D]To get approval of documents



14. Double declining balance is a form of
[A]Decelerated depreciation
[B]Straight line depreciation
[C]Accelerated depreciation
[D]Life cycle costing



15. You are appraising three projects. The NPV of Project A is $10000, NPV of Project B is -$10000 and the NPV of Project C is $12000. Which project would you select?
[A]Project A
[B]Project C
[C]Project B
[D]Not enough information is given