PROJECT PROCUREMENT EXAMINATION QUESTIONS AND CORRECT ANSWER WITH EXPLANATION GRADED A+ STUDY GUIDE

PROJECT PROCUREMENT EXAMINATION QUESTIONS
AND CORRECT ANSWER WITH EXPLANATION GRADED
A+ STUDY GUIDE SOUTHERN NEW HAMPSHIRE
UNIVERSITY
1. Project procurement management involves:
A. Acquiring goods and services from external sources
B. Only internal hiring
C. Only budgeting
D. Only scheduling
Answer: A
Rationale: Procurement is external acquisition.

2. The main goal of procurement is to:
A. Obtain quality goods/services on time and within budget
B. Increase delays
C. Reduce quality
D. Avoid contracts
Answer: A
Rationale: Efficiency and value.

3. A contract is:
A. A legally binding agreement
B. A verbal suggestion
C. A project schedule
D. A risk plan
Answer: A
Rationale: Legal enforceability.

4. Procurement planning determines:
A. What to buy, when, and how
B. Only budget
C. Only risks
D. Only HR needs
Answer: A
Rationale: Procurement strategy.

,5. Make-or-buy analysis decides:
A. Whether to produce internally or outsource
B. Marketing strategy
C. HR hiring
D. Scheduling tasks
Answer: A
Rationale: Outsourcing decision.

6. Procurement management plan defines:
A. How procurement will be managed
B. Only budget
C. Only risks
D. Only schedule
Answer: A
Rationale: Procurement approach.

7. Supplier is:
A. An external provider of goods/services
B. Internal employee
C. Project manager
D. Stakeholder only
Answer: A
Rationale: External vendor.

8. Vendor selection is based on:
A. Cost, quality, and capability
B. Random choice
C. HR preference
D. Schedule only
Answer: A
Rationale: Evaluation criteria.

9. Procurement process starts with:
A. Need identification
B. Contract closure
C. Delivery
D. Payment
Answer: A
Rationale: Requirement definition.

, 10. Request for Proposal (RFP) is:
A. Document inviting suppliers to submit proposals
B. Purchase order
C. Invoice
D. Risk report
Answer: A
Rationale: Vendor solicitation.

11. Request for Quotation (RFQ) is used for:
A. Price-based procurement
B. Risk analysis
C. HR hiring
D. Scheduling
Answer: A
Rationale: Cost comparison.

12. Invitation to Tender (ITT) is:
A. Formal bid invitation
B. Internal memo
C. Risk plan
D. Schedule update
Answer: A
Rationale: Competitive bidding.

13. Contract types include:
A. Fixed price, cost-reimbursable, time & material
B. HR contracts only
C. Marketing contracts only
D. Risk contracts only
Answer: A
Rationale: Main categories.

14. Fixed-price contract means:
A. Price is agreed in advance
B. Price changes randomly
C. No payment
D. Open budget
Answer: A
Rationale: Fixed cost agreement.