Prep Latest 2025–2026 Edition | 520 Actual Exam
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People, Process and Business Environment
Domains | Agile, Scrum, Kanban, Stakeholder
Management, Risk Management, Cost
Management, Schedule Management and
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1. A project manager is leading a project in a highly uncertain environment
where requirements are expected to evolve. Which approach is MOST
appropriate?
A. Predictive (Waterfall)
B. Iterative or Agile approach
C. Strict phase gate control
D. Fixed scope baseline
Correct Answer: B (✔)
Rationale: (B) Iterative or Agile approach is best because it allows continuous
feedback and adapts to changing requirements in uncertain environments.
, 2. A key stakeholder requests a major change that was not included in the
baseline scope. What should the project manager do FIRST?
A. Reject the request immediately
B. Implement the change to satisfy the stakeholder
C. Submit the change through integrated change control
D. Ask the team to estimate the change impact
Correct Answer: C (✔)
Rationale: (C) All changes must go through integrated change control to assess
impact before approval.
3. During project execution, the team reports repeated delays due to unclear
requirements. What should the project manager do?
A. Add more resources
B. Escalate to sponsor
C. Conduct backlog refinement or requirements clarification
D. Freeze the schedule baseline
Correct Answer: C (✔)
Rationale: (C) Clarifying requirements reduces ambiguity and prevents further
delays.
4. A project is over budget due to frequent scope changes. What is the BEST
preventive action?
A. Increase contingency reserves
B. Strengthen scope management process
C. Reduce project scope immediately
D. Replace the project team
,Correct Answer: B (✔)
Rationale: (B) Strong scope management prevents uncontrolled changes and
budget overruns.
5. Which document defines how project changes will be managed?
A. Project Charter
B. Risk Register
C. Change Management Plan
D. Issue Log
Correct Answer: C (✔)
Rationale: (C) The change management plan outlines procedures for handling
changes.
6. A project manager identifies a high-impact risk. What should be done
FIRST?
A. Implement mitigation immediately
B. Add it to the issue log
C. Analyze and assess the risk
D. Escalate to sponsor
Correct Answer: C (✔)
Rationale: (C) Risks must first be analyzed to determine probability and impact
before response planning.
7. A team member is unclear about responsibilities. Which tool BEST clarifies
roles?
A. RACI matrix
B. Work breakdown structure
, C. Gantt chart
D. Risk register
Correct Answer: A (✔)
Rationale: (A) RACI defines Responsible, Accountable, Consulted, and Informed
roles clearly.
8. A project is experiencing frequent quality defects. What should the project
manager do FIRST?
A. Hire new testers
B. Conduct root cause analysis
C. Escalate to sponsor
D. Stop production
Correct Answer: B (✔)
Rationale: (B) Root cause analysis identifies underlying issues causing defects.
9. Which is the PRIMARY purpose of the project charter?
A. Define detailed tasks
B. Authorize the project
C. Assign team members
D. Create schedule baseline
Correct Answer: B (✔)
Rationale: (B) The charter formally authorizes the project and provides the project
manager authority.
10.A stakeholder is resistant to project changes. What is the BEST approach?
A. Ignore stakeholder concerns
B. Remove stakeholder from project