64 Free Sample PMP Questions On Initiating The Project: Flashcard Review

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64 Free Sample PMP Questions On Initiating The Project: Flashcard Review

QuestionThe cash inflows are compared to the cash outflows in an IRR calculation to identify what point?

AnswerExplain that the remaining two managers must signoff before work can beginSource: PMBOK® Guide 5th Ed., Page 67
AnswerLimit the team's options regarding scope, staffing and scheduleSource: PMBOK® Guide 5th Ed., page 202
AnswerProject charter and project manager assignment (among other things).Source: PMBOK® Guide 5th Ed., Page 54-55
AnswerWhere the Net Present Value of the cash inflows equal the cash outflowSource: Kerzner, p. 557

QuestionHow would you describe the main difference between a matrix organization and a functional organization?

AnswerA manager external to the project who is at an level appropriate to the needs of the projectSource: PMBOK® Guide 5th Ed., Page 67
AnswerInternal rate of return Source: Kerzner 557
AnswerMatrixSource: Managing Projects in Organizations Frame, Page 44
AnswerIn a functional organizations, project coordination is done by the functional managerSource: PMBOK® Guide 5th Ed., Page 22-23

QuestionThe measure of the project's expected profitability is the:

AnswerFinance Kerzner 554
AnswerProgramsSource: PMBOK® Guide 5th Ed., p. 9
AnswerPresent ValueSource: Kerzner, p. 555
AnswerInternal rate of return Source: Kerzner 557

QuestionIn the initiation process, expert judgment is used to:

AnswerReasons to initiate a projectSource: PMBOK® Guide 5th Ed., Page 69
AnswerAssess the inputs to this process Source: PMBOK® Guide 5th Ed., Page 71
AnswerThe project charterSource: PMBOK® Guide 5th Ed., page 71
AnswerExpert judgmentSource: PMBOK® Guide 5th Ed., Page 71

QuestionYou were just appointed to lead the PMO office of your company. You have established a projectized organizational structure. What is the BEST thing the PMO director can do to improve project management practices?

AnswerThe project managerSource: PMBOK® Guide 5th Ed., p. 16
AnswerIdentify stakeholdersSource: PMBOK® Guide 5th Ed., Page 393
AnswerIdentify and implement a project management process and require adherence by your employeesSource: PMBOK® Guide 5th Ed., Page 11-12
Answer$90,000Source: Project Management Terms Ward, Page 139

QuestionAn organizational need, a legal requirement, and a technological advance are examples of:

AnswerInitiating processSource: PMBOK® Guide 5th Ed., page 54
AnswerInitiating processesSource: PMBOK® Guide 5th Ed., page 54
AnswerReasons to initiate a projectSource: PMBOK® Guide 5th Ed., Page 69
AnswerInitiationSource: PMBOK® Guide 5th Ed., Pages 67

QuestionProject X has an NPV of $90,000. Project Y has an NPV of $125,000. What is the opportunity cost of selecting project Y?

AnswerMatrixSource: Managing Projects in Organizations Frame, Page 44
AnswerThe sellerSource: PMBOK® Guide 5th Ed., Page 70
AnswerCustomerSource: PMBOK® Guide 5th Ed., Pages 32
Answer$90,000Source: Project Management Terms Ward, Page 139

QuestionEnterprise Environmental Factors that can affect the Charter are:

AnswerNet present value (NPV) Internal rate of return (IRR) Others are also usedMeredith & Mantel 50-52
AnswerMeet with the customer to determine if more capacity is warrantedSource: PMBOK® Guide 5th Ed., Page 114
AnswerWhere the Net Present Value of the cash inflows equal the cash outflowSource: Kerzner, p. 557
Answer• Government or industry standards • Organizational infrastructure• Marketplace conditionsDid you get at least one??Source: PMBOK® Guide 5th Ed., page 70

QuestionMeasurable objectives and their related success criteria are examples of:

AnswerThe sellerSource: PMBOK® Guide 5th Ed., Page 70
AnswerThe project charterSource: PMBOK® Guide 5th Ed., page 71
AnswerComponents of the CharterSource: PMBOK® Guide 5th Ed., Page 72
AnswerDevelop project charterSource: PMBOK® Guide 5th Ed., Page 66

QuestionAuthorizing the project manager to use organizational resources to accomplish the project is done by:

AnswerThe project managerSource: PMBOK® Guide 5th Ed., p. 16
AnswerThe project charterSource: PMBOK® Guide 5th Ed., page 71
AnswerProgramsSource: PMBOK® Guide 5th Ed., p. 9
AnswerThe project charterSource: PMBOK® Guide 5th Ed., 4.1

QuestionWhich document is used to determine whether or not a project is worth the required investment?

AnswerBusiness caseSource: PMBOK® Guide 5th Ed., p. 69
AnswerThe sellerSource: PMBOK® Guide 5th Ed., Page 70
AnswerProgramsSource: PMBOK® Guide 5th Ed., p. 9
AnswerInitiationSource: PMBOK® Guide 5th Ed., Pages 67

QuestionYour company has been selected by the country of Atlantis to submit a bid to develop their national defense computer network. This will be a rather lengthy process and because of the complexities involved your company has decided to use a sophisticated project selection model and to:

AnswerTreat project selection as a separate project phaseSource: PMBOK® Guide 5th Ed., p. 42
AnswerManagement , outside the project boundariesSource: PMBOK® Guide 5th Ed., Page 67
AnswerStakeholder analysis, expert judgment and meetingsSource: PMBOK® Guide 5th Ed., p. 393
AnswerReasons to initiate a projectSource: PMBOK® Guide 5th Ed., Page 69

QuestionThe strategic plan is an input to the:

AnswerExpert judgmentSource: PMBOK® Guide 5th Ed., Page 71
AnswerProject statement of workSource: PMBOK® Guide 5th Ed., page 68
AnswerProject selectionSource: PMBOK® Guide 5th Ed., Page 69
AnswerStakeholdersSource: PMBOK® Guide 5th Ed., Page 30

QuestionA pre-defined budget is a constraint that is highly likely to:

AnswerProject charter and project manager assignment (among other things).Source: PMBOK® Guide 5th Ed., Page 54-55
AnswerLimit the team's options regarding scope, staffing and scheduleSource: PMBOK® Guide 5th Ed., page 202
AnswerWhere the Net Present Value of the cash inflows equal the cash outflowSource: Kerzner, p. 557
AnswerMeet with the customer to determine if more capacity is warrantedSource: PMBOK® Guide 5th Ed., Page 114

QuestionWhich stakeholder looks at the financial return from a group of projects and programs?

AnswerThe project managerSource: PMBOK® Guide 5th Ed., p. 16
AnswerThe project charterSource: PMBOK® Guide 5th Ed., page 71
AnswerThe project life cycleSource: PMBOK® Guide 5th Ed., Section 2.4
AnswerThe portfolio managerSource: PMBOK® Guide 5th Ed., Section 1.4

QuestionThe tools and techniques for identifying stakeholders include:

AnswerStakeholder analysis, expert judgment and meetingsSource: PMBOK® Guide 5th Ed., p. 393
AnswerTreat project selection as a separate project phaseSource: PMBOK® Guide 5th Ed., p. 42
AnswerThe project charterSource: PMBOK® Guide 5th Ed., 4.1
AnswerStakeholder analysisSource: PMBOK® Guide 5th Ed., page 395

QuestionYour cost reduction project will cost $400,000 through completion. During a two-month learning period, no cost reductions are anticipated. Savings of $15,000, $15,000, and $40,000 are anticipated in months three, four, and five respectively. Thereafter, savings of $80,000 are anticipated each month. The payback period for this project is:

AnswerTen months Meredith & Mantel 50
AnswerPresent ValueSource: Kerzner, p. 555
AnswerInternal rate of return Source: Kerzner 557
AnswerFinance Kerzner 554

QuestionWho bears the most responsibility for accomplishing project objectives?

AnswerDevelop project charterSource: PMBOK® Guide 5th Ed., Page 66
AnswerThe portfolio managerSource: PMBOK® Guide 5th Ed., Section 1.4
AnswerThe project charterSource: PMBOK® Guide 5th Ed., 4.1
AnswerThe project managerSource: PMBOK® Guide 5th Ed., p. 16

QuestionYour boss has just assigned you to a new project that has had the scope of work defined. What should you do FIRST?

AnswerCreate a change request, evaluate the impact to the project and present the finding to the customer for approvalSource: PMBOK® Guide 5th Ed., Page 55
AnswerConfirm that all stakeholders have been identified and their requirements have been included in the scope of workSource: PMBOK® Guide 5th Ed., Page 30
AnswerStakeholdersSource: PMBOK® Guide 5th Ed., Page 30
AnswerIdentify stakeholdersSource: PMBOK® Guide 5th Ed., Page 393

QuestionStakeholder risk tolerance is an example of:

AnswerProject selectionSource: PMBOK® Guide 5th Ed., Page 69
AnswerExpert judgmentSource: PMBOK® Guide 5th Ed., Page 71
AnswerEnterprise environmental factors Source: PMBOK® Guide 5th Ed., page 29
AnswerAssess the inputs to this process Source: PMBOK® Guide 5th Ed., Page 71

QuestionIdentifying the potential support or impact from each stakeholder is an example of:

AnswerThe sellerSource: PMBOK® Guide 5th Ed., Page 70
AnswerConstraintsSource: PMBOK® Guide 5th Ed., Page 29
AnswerStakeholdersSource: PMBOK® Guide 5th Ed., Page 30
AnswerStakeholder analysisSource: PMBOK® Guide 5th Ed., page 395

QuestionThe project manager should be identified and assigned:

AnswerAs early in the project as is feasible, preferably while the charter is being developed and always prior to the start of planningSource: PMBOK® Guide 5th Ed., page 67
AnswerReasons to initiate a projectSource: PMBOK® Guide 5th Ed., Page 69
AnswerA manager external to the project who is at an level appropriate to the needs of the projectSource: PMBOK® Guide 5th Ed., Page 67
AnswerMeet with the leadership team to create the project charter and seek approval from themSource: PMBOK® Guide 5th Ed., Page 69

QuestionIf you want to classify project stakeholders by their level of authority and their level of concern, what is a good tool to use?

AnswerPower/Interest gridSource: PMBOK® Guide 5th Ed., p. 396
AnswerConstraintsSource: PMBOK® Guide 5th Ed., Page 29
AnswerSalience modelSource: PMBOK® Guide 5th Ed., p. 396
AnswerBusiness caseSource: PMBOK® Guide 5th Ed., p. 69

QuestionYou are a project manager for a project that primarily supports your company's IT department. Your project charter should be issued by:

AnswerA manager external to the project who is at an level appropriate to the needs of the projectSource: PMBOK® Guide 5th Ed., Page 67
AnswerManagement , outside the project boundariesSource: PMBOK® Guide 5th Ed., Page 67
AnswerA manager external to the project at an appropriate levelSource: PMBOK® Guide 5th Ed., Page 67
AnswerTreat project selection as a separate project phaseSource: PMBOK® Guide 5th Ed., p. 42

QuestionInputs from consultants, stakeholders, SMEs and others would be considered a form of:

AnswerThe project charterSource: PMBOK® Guide 5th Ed., page 71
AnswerExpert judgmentSource: PMBOK® Guide 5th Ed., Page 71
AnswerCustomerSource: PMBOK® Guide 5th Ed., Pages 32
AnswerThe sellerSource: PMBOK® Guide 5th Ed., Page 70

QuestionAccording to the Project Management Institute, formally recognizing that a project exists or that an existing project should continue into its next phase is done during the:

AnswerStakeholdersSource: PMBOK® Guide 5th Ed., Page 112
AnswerInitiationSource: PMBOK® Guide 5th Ed., Pages 67
AnswerInitiating processSource: PMBOK® Guide 5th Ed., page 54
AnswerInitiating processesSource: PMBOK® Guide 5th Ed., page 54

QuestionNumeric project selection models include:

AnswerNet present value (NPV) Internal rate of return (IRR) Others are also usedMeredith & Mantel 50-52
AnswerTreat project selection as a separate project phaseSource: PMBOK® Guide 5th Ed., p. 42
AnswerProject charter and project manager assignment (among other things).Source: PMBOK® Guide 5th Ed., Page 54-55
AnswerInternal rate of return Source: Kerzner 557

QuestionThe signed contract serves as the project charter for:

AnswerStakeholdersSource: PMBOK® Guide 5th Ed., Page 112
AnswerInitiationSource: PMBOK® Guide 5th Ed., Pages 67
AnswerThe sellerSource: PMBOK® Guide 5th Ed., Page 70
AnswerCustomerSource: PMBOK® Guide 5th Ed., Pages 32

QuestionYour project was recently cancelled. When discussing this with your projectteam it was identified that there was a conflict between the customer and the IT team lead on the requirements. A lesson learned would be to focus more attention during future projects on the:

AnswerInitiating processesSource: PMBOK® Guide 5th Ed., page 54
AnswerInitiationSource: PMBOK® Guide 5th Ed., Pages 67
AnswerInitiating processSource: PMBOK® Guide 5th Ed., page 54
AnswerConstraintsSource: PMBOK® Guide 5th Ed., Page 29

QuestionYour customer has stated in the RFP that their need is for an assembly line that produces 18,000 triggers per hour.After the bid has been received and the contract awarded to your company, members of the project team design an assembly line plan that could deliver 24,000 triggers per hour capacity. What is the BEST thing to do?

AnswerProject charter and project manager assignment (among other things).Source: PMBOK® Guide 5th Ed., Page 54-55
AnswerA manager external to the project at an appropriate levelSource: PMBOK® Guide 5th Ed., Page 67
AnswerMeet with the customer to determine if more capacity is warrantedSource: PMBOK® Guide 5th Ed., Page 114
AnswerWhen initiation involves approval for the next phase of a projectSource: PMBOK® Guide 5th Ed., Page 42

QuestionProjects are typically authorized as a result of:

AnswerThe Stakeholder register.Source: PMBOK® Guide 5th Ed., Page 54
AnswerInitiating processSource: PMBOK® Guide 5th Ed., page 54
AnswerAssess the inputs to this process Source: PMBOK® Guide 5th Ed., Page 71
AnswerA market demand or customer request Source: PMBOK® Guide 5th Ed., page 54

QuestionWhat limits the project management team's options?

AnswerProgramsSource: PMBOK® Guide 5th Ed., p. 9
AnswerInitiationSource: PMBOK® Guide 5th Ed., Pages 67
AnswerStakeholdersSource: PMBOK® Guide 5th Ed., Page 30
AnswerConstraintsSource: PMBOK® Guide 5th Ed., Page 29

QuestionAgreements, the statement of work, the enterprise environmental factors and the organizational process assets are four inputs to WHICH project management process?

AnswerDevelop project charterSource: PMBOK® Guide 5th Ed., Page 66
AnswerThe project charterSource: PMBOK® Guide 5th Ed., 4.1
AnswerThe project managerSource: PMBOK® Guide 5th Ed., p. 16
AnswerThe project charterSource: PMBOK® Guide 5th Ed., page 71

QuestionIn general, differences between or among stakeholders should be resolved in favor of the:

AnswerStakeholdersSource: PMBOK® Guide 5th Ed., Page 30
AnswerThe sellerSource: PMBOK® Guide 5th Ed., Page 70
AnswerInitiationSource: PMBOK® Guide 5th Ed., Pages 67
AnswerCustomerSource: PMBOK® Guide 5th Ed., Pages 32

QuestionA tool and technique for developing the Charter is:

AnswerCustomerSource: PMBOK® Guide 5th Ed., Pages 32
AnswerExpert judgmentSource: PMBOK® Guide 5th Ed., page 71
AnswerStakeholdersSource: PMBOK® Guide 5th Ed., Page 112
AnswerThe project charterSource: PMBOK® Guide 5th Ed., page 71

QuestionFor completion of initiation, a project manager needs the project charter and:

AnswerStakeholdersSource: PMBOK® Guide 5th Ed., Page 112
AnswerThe sellerSource: PMBOK® Guide 5th Ed., Page 70
AnswerStakeholder analysisSource: PMBOK® Guide 5th Ed., page 395
AnswerThe Stakeholder register.Source: PMBOK® Guide 5th Ed., Page 54

QuestionThe basic framework for managing the project is defined by

AnswerDevelop project charterSource: PMBOK® Guide 5th Ed., Page 66
AnswerProject selectionSource: PMBOK® Guide 5th Ed., Page 69
AnswerThe project managerSource: PMBOK® Guide 5th Ed., p. 16
AnswerThe project life cycleSource: PMBOK® Guide 5th Ed., Section 2.4

QuestionWhen is the BEST time to assign the project manager?

AnswerCustomerSource: PMBOK® Guide 5th Ed., Pages 32
AnswerInitiating processSource: PMBOK® Guide 5th Ed., page 54
AnswerConstraintsSource: PMBOK® Guide 5th Ed., Page 29
AnswerInitiationSource: PMBOK® Guide 5th Ed., Pages 67

QuestionInformation from the stakeholder register is used in which process?

AnswerPlan Communications(also correct is Collect Requirements)Source: PMBOK® Guide 5th Ed., Section 10.1
AnswerProject charter and project manager assignment (among other things).Source: PMBOK® Guide 5th Ed., Page 54-55
AnswerInitiationSource: PMBOK® Guide 5th Ed., Pages 67
AnswerWhen initiation involves approval for the next phase of a projectSource: PMBOK® Guide 5th Ed., Page 42

QuestionThe project charter should be issued by:

AnswerCreate a change request, evaluate the impact to the project and present the finding to the customer for approvalSource: PMBOK® Guide 5th Ed., Page 55
AnswerIdentify and implement a project management process and require adherence by your employeesSource: PMBOK® Guide 5th Ed., Page 11-12
AnswerAs early in the project as is feasible, preferably while the charter is being developed and always prior to the start of planningSource: PMBOK® Guide 5th Ed., page 67
AnswerA manager external to the project who is at an level appropriate to the needs of the projectSource: PMBOK® Guide 5th Ed., Page 67

QuestionA grid that describes the ability of stakeholders to impose their will and their legitimacy is

AnswerBusiness caseSource: PMBOK® Guide 5th Ed., p. 69
AnswerBusiness needSource: PMBOK® Guide 5th Ed., p. 68
AnswerProgramsSource: PMBOK® Guide 5th Ed., p. 9
AnswerSalience modelSource: PMBOK® Guide 5th Ed., p. 396

QuestionYour customer has specified the use of copper wiring in the new apartment complex you are building. The general contractor has asked to use aluminum wire because of a nationwide shortage of copper that will delay his due date.What should you do?

AnswerIdentify and implement a project management process and require adherence by your employeesSource: PMBOK® Guide 5th Ed., Page 11-12
AnswerCreate a change request, evaluate the impact to the project and present the finding to the customer for approvalSource: PMBOK® Guide 5th Ed., Page 55
AnswerA manager external to the project who is at an level appropriate to the needs of the projectSource: PMBOK® Guide 5th Ed., Page 67
AnswerAdd up the present value of each of the income, then subtract the present values of the costsSource: Introductory texts on business and accounting

QuestionAn internal document identifying the project manager's authority to apply organizational resources to project activities is:

AnswerThe project charterSource: PMBOK® Guide 5th Ed., page 71
AnswerThe sellerSource: PMBOK® Guide 5th Ed., Page 70
AnswerProject selectionSource: PMBOK® Guide 5th Ed., Page 69
AnswerDevelop project charterSource: PMBOK® Guide 5th Ed., Page 66

QuestionYou are estimating your budget for your project. You have very little information to date, except that your project is similar in nature to another project done recently. You use that project's actual cost as the basis for your estimate. You have just done:

AnswerAn analogous estimate.Source: PMBOK® Guide 5th Ed., page 204.
AnswerThe Stakeholder register.Source: PMBOK® Guide 5th Ed., Page 54
AnswerInitiating processesSource: PMBOK® Guide 5th Ed., page 54
AnswerFunctional organizationSource: PMBOK® Guide 5th Ed., Page 22

QuestionYou are a project manager in a technology training company. For years, your company has offered a course to help students prepare for the Megasoft Network Engineer (MSNE). When Megasoft decided to rewrite this course your management decided to redo the course and selected you as the project manager. This project was authorized as a result of a:

AnswerBusiness caseSource: PMBOK® Guide 5th Ed., p. 69
AnswerSalience modelSource: PMBOK® Guide 5th Ed., p. 396
AnswerBusiness needSource: PMBOK® Guide 5th Ed., p. 68
AnswerThe sellerSource: PMBOK® Guide 5th Ed., Page 70

QuestionWho determines the requirements of a new project?

AnswerIdentify stakeholdersSource: PMBOK® Guide 5th Ed., Page 393
AnswerStakeholdersSource: PMBOK® Guide 5th Ed., Page 112
AnswerThe sellerSource: PMBOK® Guide 5th Ed., Page 70
AnswerCustomerSource: PMBOK® Guide 5th Ed., Pages 32

QuestionThe project manager must identify _________, in order to determine the project requirements.

AnswerStakeholdersSource: PMBOK® Guide 5th Ed., Page 30
AnswerCustomerSource: PMBOK® Guide 5th Ed., Pages 32
AnswerStakeholdersSource: PMBOK® Guide 5th Ed., Page 112
AnswerConstraintsSource: PMBOK® Guide 5th Ed., Page 29

QuestionThe rate of return that would have been earned by choosing one project and giving up another?

AnswerCustomerSource: PMBOK® Guide 5th Ed., Pages 32
AnswerConstraintsSource: PMBOK® Guide 5th Ed., Page 29
AnswerOpportunity costSource: Project Management Terms Ward, Page 139
AnswerExpert judgmentSource: PMBOK® Guide 5th Ed., page 71

QuestionYou are a project manager in a company that is using a functional organizational structure. You have been asked to develop the project charter for a new initiative. What should you do FIRST?

AnswerCreate a change request, evaluate the impact to the project and present the finding to the customer for approvalSource: PMBOK® Guide 5th Ed., Page 55
AnswerMeet with the leadership team to create the project charter and seek approval from themSource: PMBOK® Guide 5th Ed., Page 69
AnswerRecognize the existence of the project Source: PMBOK® Guide 5th Ed., 4.1
AnswerMeet with the customer to determine if more capacity is warrantedSource: PMBOK® Guide 5th Ed., Page 114

QuestionWhat is managed in a coordinated way that obtains benefits not available from managing them individually?

AnswerStakeholdersSource: PMBOK® Guide 5th Ed., Page 30
AnswerBusiness needSource: PMBOK® Guide 5th Ed., p. 68
AnswerCustomerSource: PMBOK® Guide 5th Ed., Pages 32
AnswerProgramsSource: PMBOK® Guide 5th Ed., p. 9

QuestionMarket demand, technological advance, organizational need and legal/social needs are factors to consider during:

AnswerProject selectionSource: PMBOK® Guide 5th Ed., Page 69
AnswerProject statement of workSource: PMBOK® Guide 5th Ed., page 68
AnswerInitiationSource: PMBOK® Guide 5th Ed., Pages 67
AnswerThe sellerSource: PMBOK® Guide 5th Ed., Page 70

QuestionWhen is historical information about the results of previous phases critical?

AnswerLimit the team's options regarding scope, staffing and scheduleSource: PMBOK® Guide 5th Ed., page 202
AnswerMeet with the customer to determine if more capacity is warrantedSource: PMBOK® Guide 5th Ed., Page 114
AnswerProject charter and project manager assignment (among other things).Source: PMBOK® Guide 5th Ed., Page 54-55
AnswerWhen initiation involves approval for the next phase of a projectSource: PMBOK® Guide 5th Ed., Page 42

QuestionAs a project manager, you are often asked to meet with your leadership team to create project charters. One of these meetings has just concluded and two functional managers have sent representatives because they were out of town. Your boss has asked you to begin the project planning process tomorrow. What is the BEST position to take on beginning the project?

AnswerWhere the Net Present Value of the cash inflows equal the cash outflowSource: Kerzner, p. 557
AnswerMeet with the customer to determine if more capacity is warrantedSource: PMBOK® Guide 5th Ed., Page 114
AnswerExplain that the remaining two managers must signoff before work can beginSource: PMBOK® Guide 5th Ed., Page 67
AnswerInternal rate of return Source: Kerzner 557

QuestionThe initiation process outputs include:

AnswerMeet with the customer to determine if more capacity is warrantedSource: PMBOK® Guide 5th Ed., Page 114
AnswerWhen initiation involves approval for the next phase of a projectSource: PMBOK® Guide 5th Ed., Page 42
AnswerLimit the team's options regarding scope, staffing and scheduleSource: PMBOK® Guide 5th Ed., page 202
AnswerProject charter and project manager assignment (among other things).Source: PMBOK® Guide 5th Ed., Page 54-55

QuestionEvaluating the value of a project in today's dollars is which technique?

AnswerProgramsSource: PMBOK® Guide 5th Ed., p. 9
AnswerPresent ValueSource: Kerzner, p. 555
AnswerInternal rate of return Source: Kerzner 557
AnswerFinance Kerzner 554

QuestionWhich type of organization is BEST for managing cross-disciplinary efforts?

AnswerCustomerSource: PMBOK® Guide 5th Ed., Pages 32
AnswerOpportunity costSource: Project Management Terms Ward, Page 139
AnswerConstraintsSource: PMBOK® Guide 5th Ed., Page 29
AnswerMatrixSource: Managing Projects in Organizations Frame, Page 44

QuestionWhen project management work is done under contract, changes and disputes are bound to occur. For this reason, it is important to:

AnswerInitiating processesSource: PMBOK® Guide 5th Ed., page 54
AnswerCreate a process for contract change and disputes while negotiating the contractSource: Managing Projects in Organizations Frame, Pages 220,221
AnswerInitiating processSource: PMBOK® Guide 5th Ed., page 54
AnswerMatrixSource: Managing Projects in Organizations Frame, Page 44

QuestionWho issues the project charter?

AnswerComponents of the CharterSource: PMBOK® Guide 5th Ed., Page 72
AnswerThe project charterSource: PMBOK® Guide 5th Ed., page 71
AnswerDevelop project charterSource: PMBOK® Guide 5th Ed., Page 66
AnswerManagement , outside the project boundariesSource: PMBOK® Guide 5th Ed., Page 67

QuestionThe charter, the contract, the enterprise environmental factors and the organizational process assets are inputs to:

AnswerIdentify stakeholdersSource: PMBOK® Guide 5th Ed., Page 393
AnswerStakeholdersSource: PMBOK® Guide 5th Ed., Page 112
AnswerThe sellerSource: PMBOK® Guide 5th Ed., Page 70
AnswerInitiating processSource: PMBOK® Guide 5th Ed., page 54

QuestionIn order to calculate Net Present Value, what are the steps necessary?

AnswerInternal rate of return Source: Kerzner 557
AnswerMeet with the leadership team to create the project charter and seek approval from themSource: PMBOK® Guide 5th Ed., Page 69
AnswerWhere the Net Present Value of the cash inflows equal the cash outflowSource: Kerzner, p. 557
AnswerAdd up the present value of each of the income, then subtract the present values of the costsSource: Introductory texts on business and accounting

QuestionWhich organizational structure gives the project manager the LEAST amount of authority?

AnswerProject selectionSource: PMBOK® Guide 5th Ed., Page 69
AnswerFunctional organizationSource: PMBOK® Guide 5th Ed., Page 22
AnswerInitiationSource: PMBOK® Guide 5th Ed., Pages 67
AnswerStakeholder analysisSource: PMBOK® Guide 5th Ed., page 395

QuestionYour company is developing a way to have iPods interact with exercise watches that measure pulse rate and target heart rate. This project is started based on

AnswerBusiness needSource: PMBOK® Guide 5th Ed., p. 68
AnswerTechnological advanceSource: PMBOK® Guide 5th Ed., p. 69
AnswerBusiness caseSource: PMBOK® Guide 5th Ed., p. 69
AnswerProgramsSource: PMBOK® Guide 5th Ed., p. 9

QuestionCan a project be done and should it be done would be asked by whom?

AnswerTen months Meredith & Mantel 50
AnswerPresent ValueSource: Kerzner, p. 555
AnswerInternal rate of return Source: Kerzner 557
AnswerFinance Kerzner 554

QuestionThe project charter is used to:

AnswerThe project charterSource: PMBOK® Guide 5th Ed., 4.1
AnswerPower/Interest gridSource: PMBOK® Guide 5th Ed., p. 396
AnswerRecognize the existence of the project Source: PMBOK® Guide 5th Ed., 4.1
AnswerThe project managerSource: PMBOK® Guide 5th Ed., p. 16

64 Free Sample PMP Questions On Initiating The Project: Flashcard Review