PMP Flashcards QUESTIONS & COMPLETE
SOLUTIONS(RATED A)
Project - ANSWER A temporary endeavor with a beginning and an end.
It creates a unique product, service, or result.
Stakeholders - ANSWER Any people or organizations whose interests may be positively or negatively
impacted by the project.
Predictive - ANSWER Relies on a planning process during which requirements and scope may be defined
in detail early in the project.
Require scope, schedule, and cost to be determined in detail early in the life of a project, before the
work begins to produce deliverables.
Plan-driven, traditional, or waterfall.
Agile - ANSWER Works best for projects where the definition of scope is emerging.
Planning, executing, and managing the project happens in smaller increments to changes can be easily
made as information about the product and project's needs changes.
Incremental and iterative life cycles involve early planning of high-level scope sufficient enough to allow
for preliminary estimates of time and cost; scope is developed a little more with each iteration.
Change-driven or adaptive.
, Program management - ANSWER Grouping related projects into a program allows an organization to
coordinate their management of these projects.
Portfolio management - ANSWER A _____ includes programs, projects, and related operational work that
are prioritized and implemented to achieve a specific strategic business goal.
Supportive PMO - ANSWER Provides the policies, methodologies, templates, and lessons learned for
managing projects within the organization.
It typically exercises a low level of control over projects.
Controlling PMO - ANSWER Provides support and guidance on how to manage projects, trainings others
in project management and project management software, assists with specific project management
tools, and ensures compliance with organizational policies.
Typically has a moderate level of control over projects.
Directive PMO - ANSWER Provides PMs for different projects and is responsible for the results of those
projects.
All projects or projects of a certain size, type, or influence are managed by this office.
Has a high level of control over projects.
Business case - ANSWER The business document most commonly used to create the project charter.
Describes the necessary information from a business standpoint to determine whether the expected
outcomes of the project justify the required investment.
Organizational governance - ANSWER The overall structure of an organization. Involves setting the
policies and procedures for how work will be performed to meet strategic goals and to support
organizational operations and decision-making
,Functional - ANSWER _____ organizations are grouped by areas of specialization within _____ areas, like
marketing or accounting.
Projects generally occur within a single department.
When you see "_____" think "silo"
Team members complete project work in addition to normal department work.
Project-oriented - ANSWER The entire company is organized by projects.
When you see "_____" think "no home"
Team members complete only project work and when the project is over, they do not have a department
to go back to. They need to be assigned to another project or get a job with a different employer.
Matrix - ANSWER An attempt to maximize the strengths of the functional and project-oriented structure.
When you see "_____" think "two managers"
Team members report to two managers - PM and functional manager.
Organizational Process Assets (OPAs) - ANSWER Processes, procedures, and policies
Organizational knowledge repositories - historical knowledge bases
Enterprise Environmental Factors (EEFs) - ANSWER Provide context within which to plan the project.
, _____ are generally outside the control of the project team.
External EEFs - ANSWER Governmental or other rules and regulations that apply to the performing
organization.
Internal EEFs - ANSWER Structure, culture, systems, and geographic locations of the organizations.
Payback Period - ANSWER The length of time it takes for the organization to recover its investment in a
project before it starts accumulating profit.
Cost benefit analysis - ANSWER Compares the expected costs of a project to the potential benefits the
project could bring to the organization.
A benefit-cost ratio greater than 1 means the benefits are greater than the costs; benefit-cost ratio less
than 1 means the costs are greater than the benefits.
A benefit-cost ratio of 1.7 means the revenue, or benefits, the project brings to the organization are 1.7
times the cost of the initiative.
Sunk costs - ANSWER Expended costs.
They should not be considered when deciding whether to continue with a troubled proejct.
Law of Diminishing Returns - ANSWER States that after a certain point, adding more input will not
produce a proportional increase in productivity.
Working Capital - ANSWER This term refers to an organization's current assets minus its current
liabilities.
In other words, is it the amount of money the company has available to invest.
SOLUTIONS(RATED A)
Project - ANSWER A temporary endeavor with a beginning and an end.
It creates a unique product, service, or result.
Stakeholders - ANSWER Any people or organizations whose interests may be positively or negatively
impacted by the project.
Predictive - ANSWER Relies on a planning process during which requirements and scope may be defined
in detail early in the project.
Require scope, schedule, and cost to be determined in detail early in the life of a project, before the
work begins to produce deliverables.
Plan-driven, traditional, or waterfall.
Agile - ANSWER Works best for projects where the definition of scope is emerging.
Planning, executing, and managing the project happens in smaller increments to changes can be easily
made as information about the product and project's needs changes.
Incremental and iterative life cycles involve early planning of high-level scope sufficient enough to allow
for preliminary estimates of time and cost; scope is developed a little more with each iteration.
Change-driven or adaptive.
, Program management - ANSWER Grouping related projects into a program allows an organization to
coordinate their management of these projects.
Portfolio management - ANSWER A _____ includes programs, projects, and related operational work that
are prioritized and implemented to achieve a specific strategic business goal.
Supportive PMO - ANSWER Provides the policies, methodologies, templates, and lessons learned for
managing projects within the organization.
It typically exercises a low level of control over projects.
Controlling PMO - ANSWER Provides support and guidance on how to manage projects, trainings others
in project management and project management software, assists with specific project management
tools, and ensures compliance with organizational policies.
Typically has a moderate level of control over projects.
Directive PMO - ANSWER Provides PMs for different projects and is responsible for the results of those
projects.
All projects or projects of a certain size, type, or influence are managed by this office.
Has a high level of control over projects.
Business case - ANSWER The business document most commonly used to create the project charter.
Describes the necessary information from a business standpoint to determine whether the expected
outcomes of the project justify the required investment.
Organizational governance - ANSWER The overall structure of an organization. Involves setting the
policies and procedures for how work will be performed to meet strategic goals and to support
organizational operations and decision-making
,Functional - ANSWER _____ organizations are grouped by areas of specialization within _____ areas, like
marketing or accounting.
Projects generally occur within a single department.
When you see "_____" think "silo"
Team members complete project work in addition to normal department work.
Project-oriented - ANSWER The entire company is organized by projects.
When you see "_____" think "no home"
Team members complete only project work and when the project is over, they do not have a department
to go back to. They need to be assigned to another project or get a job with a different employer.
Matrix - ANSWER An attempt to maximize the strengths of the functional and project-oriented structure.
When you see "_____" think "two managers"
Team members report to two managers - PM and functional manager.
Organizational Process Assets (OPAs) - ANSWER Processes, procedures, and policies
Organizational knowledge repositories - historical knowledge bases
Enterprise Environmental Factors (EEFs) - ANSWER Provide context within which to plan the project.
, _____ are generally outside the control of the project team.
External EEFs - ANSWER Governmental or other rules and regulations that apply to the performing
organization.
Internal EEFs - ANSWER Structure, culture, systems, and geographic locations of the organizations.
Payback Period - ANSWER The length of time it takes for the organization to recover its investment in a
project before it starts accumulating profit.
Cost benefit analysis - ANSWER Compares the expected costs of a project to the potential benefits the
project could bring to the organization.
A benefit-cost ratio greater than 1 means the benefits are greater than the costs; benefit-cost ratio less
than 1 means the costs are greater than the benefits.
A benefit-cost ratio of 1.7 means the revenue, or benefits, the project brings to the organization are 1.7
times the cost of the initiative.
Sunk costs - ANSWER Expended costs.
They should not be considered when deciding whether to continue with a troubled proejct.
Law of Diminishing Returns - ANSWER States that after a certain point, adding more input will not
produce a proportional increase in productivity.
Working Capital - ANSWER This term refers to an organization's current assets minus its current
liabilities.
In other words, is it the amount of money the company has available to invest.
