APM PMQ Exam Questions & Answers Correct 100%

Business case - definition - Answer A document created and owned by the project sponsor, used to provide justification for carrying out the project. It includes the costs, benefits and risks of the various project options as well as the project objectives, outputs and outcomes. Business case - components (7) - Answer 1. background 2. benefits 3. budgets 4. risks 5. constraints 6. project options 7. any other documents e.g. investment appraisal, PMP Business case - elements (5) - Answer 1. strategic context 2. economic analysis 3. commercial approach 4. financial case 5. management approach Business case - stakeholders - Answer 1. project sponsor 2. project manager 3. users 4. subject matter experts 5. suppliers 6. project steering group Investment appraisal - definition - Answer the analysis carried out to consider the profitability of a project's investment over the life of an asset. It considers the strategic fit and affordability. 1. payback - expressed in time - the period of time taken to gain back the investment, before profits are made 2. NPV - expressed as a value - the total profits worked out and a discount applied to take into consideration the future value of money 3. IRR - expressed as a percentage - the annual rate of growth Investment appraisal - benefits - Answer 1. considers if the project is affordable and profitable and therefore worth the investment - companies don't want to make a loss 2. help find the best project option - which has the best financial return Stakeholders - definition - Answer Persons, groups or institutes who have an interest or role in a programme or project, or are impacted by it. Internal (primary) e.g. direct implementation External (secondary) e.g. government agencies Stakeholder management v engagement - definition - Answer Management - the systematic identification, analysis, planning and implementation of actions to engage stakeholders (planning & organisation) Engagement - the practice of influencing a variety of outcomes through consultation, communication, negotiation, compromise and building relationships. Stakeholder engagement - benefits (5) - Answer 1. increased trust & confidence 2. robust risk management 3. increased certainty and path 4. clearer understanding of remaining resistance 5. clearer 360 awareness of org's circumstances