[WGU C722 – PROJECT MANAGEMENT] – PRACTICE QUESTIONS AND CORRECT ANSWERS (VERIFIED ANSWERS) PLUS RATIONALES
2026 Q&A | INSTANT DOWNLOAD PDF.
*Core Domains*
*Project Selection and Initiation*
*Project Planning and Scheduling*
*Resource and Cost Management*
*Risk Management and Mitigation*
*Project Execution and Monitoring*
*Quality Management and Control*
*Stakeholder Communication*
*Project Closing and Ethics*
*Introduction*
*This comprehensive practice assessment is designed to evaluate and reinforce the fundamental principles of project management within t
SECTION ONE
1. Which document formally authorizes the existence of a project and provides the project manager with the authority to apply organizational
resources to project activities?
A. Project Management Plan
B. Business Case
🟢 C. Project Charter
D. Scope Statement
🔴 RATIONALE: The Project Charter is the official document that initiates a project, outlining its objectives and granting the project manager formal
authority.
2. A project manager is using a weighted scoring model to choose between three projects. What is the primary advantage of this method?
,🟢 A. It allows for the evaluation of projects based on multiple qualitative and quantitative criteria.
B. It focuses strictly on the Net Present Value (NPV) to ensure financial profitability.
C. It eliminates the need for expert judgment by using purely mathematical formulas.
D. It guarantees that the project with the shortest duration is selected.
🔴 RATIONALE: Weighted scoring models are flexible tools that allow organizations to rank projects based on various strategic priorities beyond just
financial metrics.
3. During the planning phase, a team identifies a potential delay in the delivery of a critical component. They decide to purchase insurance to
cover potential losses. Which risk response strategy is being used?
A. Avoidance
B. Mitigation
🟢 C. Transfer
D. Acceptance
🔴 RATIONALE: Transferring risk involves shifting the financial impact or responsibility of a risk to a third party, such as an insurance company.
4. In a functional organizational structure, who typically has the most power and control over resources?
A. The Project Manager
🟢 B. The Functional Manager
C. The Project Sponsor
D. The Stakeholder
🔴 RATIONALE: In functional organizations, project managers have little to no formal authority, and resources are controlled by departmental or
functional managers.
5. Which of the following defines the "Triple Constraint" in project management?
🟢 A. Scope, Time, and Cost
B. Quality, Risk, and Resources
C. Planning, Execution, and Closing
D. Stakeholders, Sponsors, and Team Members
🔴 RATIONALE: The Triple Constraint represents the interconnected variables of scope, time, and cost; changing one inevitably impacts the others.
6. A project manager is creating a Work Breakdown Structure (WBS). What is the lowest level of the WBS called?
, A. Control Account
B. Planning Package
C. Deliverable
🟢 D. Work Package
🔴 RATIONALE: The work package is the lowest level of the WBS, where cost and duration for the work can be reliably estimated and managed.
7. Which project selection criterion focuses on the amount of time it takes for an organization to recover its initial investment?
A. Internal Rate of Return (IRR)
🟢 B. Payback Period
C. Benefit-Cost Ratio (BCR)
D. Opportunity Cost
🔴 RATIONALE: The payback period measures the duration required for the project's cash inflows to equal the initial cash Outlay.
8. A project has a Schedule Performance Index (SPI) of 0.75. What does this indicate about the project's status?
A. The project is ahead of schedule.
🟢 B. The project is behind schedule.
C. The project is exactly on schedule.
D. The project is under budget.
🔴 RATIONALE: An SPI of less than 1.0 indicates that the project is performing slower than planned and is behind schedule.
9. Which role is primarily responsible for providing funding and protecting the project from outside interference?
🟢 A. Project Sponsor
B. Project Manager
C. Portfolio Manager
D. Lead Engineer
🔴 RATIONALE: The Project Sponsor provides the financial resources and acts as a champion for the project at the executive level.
10. What is the main purpose of the Critical Path Method (CPM) in project scheduling?
A. To identify the most expensive tasks in the project.
B. To determine which tasks have the most "float" or "slack."
2026 Q&A | INSTANT DOWNLOAD PDF.
*Core Domains*
*Project Selection and Initiation*
*Project Planning and Scheduling*
*Resource and Cost Management*
*Risk Management and Mitigation*
*Project Execution and Monitoring*
*Quality Management and Control*
*Stakeholder Communication*
*Project Closing and Ethics*
*Introduction*
*This comprehensive practice assessment is designed to evaluate and reinforce the fundamental principles of project management within t
SECTION ONE
1. Which document formally authorizes the existence of a project and provides the project manager with the authority to apply organizational
resources to project activities?
A. Project Management Plan
B. Business Case
🟢 C. Project Charter
D. Scope Statement
🔴 RATIONALE: The Project Charter is the official document that initiates a project, outlining its objectives and granting the project manager formal
authority.
2. A project manager is using a weighted scoring model to choose between three projects. What is the primary advantage of this method?
,🟢 A. It allows for the evaluation of projects based on multiple qualitative and quantitative criteria.
B. It focuses strictly on the Net Present Value (NPV) to ensure financial profitability.
C. It eliminates the need for expert judgment by using purely mathematical formulas.
D. It guarantees that the project with the shortest duration is selected.
🔴 RATIONALE: Weighted scoring models are flexible tools that allow organizations to rank projects based on various strategic priorities beyond just
financial metrics.
3. During the planning phase, a team identifies a potential delay in the delivery of a critical component. They decide to purchase insurance to
cover potential losses. Which risk response strategy is being used?
A. Avoidance
B. Mitigation
🟢 C. Transfer
D. Acceptance
🔴 RATIONALE: Transferring risk involves shifting the financial impact or responsibility of a risk to a third party, such as an insurance company.
4. In a functional organizational structure, who typically has the most power and control over resources?
A. The Project Manager
🟢 B. The Functional Manager
C. The Project Sponsor
D. The Stakeholder
🔴 RATIONALE: In functional organizations, project managers have little to no formal authority, and resources are controlled by departmental or
functional managers.
5. Which of the following defines the "Triple Constraint" in project management?
🟢 A. Scope, Time, and Cost
B. Quality, Risk, and Resources
C. Planning, Execution, and Closing
D. Stakeholders, Sponsors, and Team Members
🔴 RATIONALE: The Triple Constraint represents the interconnected variables of scope, time, and cost; changing one inevitably impacts the others.
6. A project manager is creating a Work Breakdown Structure (WBS). What is the lowest level of the WBS called?
, A. Control Account
B. Planning Package
C. Deliverable
🟢 D. Work Package
🔴 RATIONALE: The work package is the lowest level of the WBS, where cost and duration for the work can be reliably estimated and managed.
7. Which project selection criterion focuses on the amount of time it takes for an organization to recover its initial investment?
A. Internal Rate of Return (IRR)
🟢 B. Payback Period
C. Benefit-Cost Ratio (BCR)
D. Opportunity Cost
🔴 RATIONALE: The payback period measures the duration required for the project's cash inflows to equal the initial cash Outlay.
8. A project has a Schedule Performance Index (SPI) of 0.75. What does this indicate about the project's status?
A. The project is ahead of schedule.
🟢 B. The project is behind schedule.
C. The project is exactly on schedule.
D. The project is under budget.
🔴 RATIONALE: An SPI of less than 1.0 indicates that the project is performing slower than planned and is behind schedule.
9. Which role is primarily responsible for providing funding and protecting the project from outside interference?
🟢 A. Project Sponsor
B. Project Manager
C. Portfolio Manager
D. Lead Engineer
🔴 RATIONALE: The Project Sponsor provides the financial resources and acts as a champion for the project at the executive level.
10. What is the main purpose of the Critical Path Method (CPM) in project scheduling?
A. To identify the most expensive tasks in the project.
B. To determine which tasks have the most "float" or "slack."
