,TEST BANK FOR
x x
Project Management in Practice, 7th Edition Meredith
x x x x x x
Chapter 1-8
x
Chapter 1: The World of Project Management
x x x x x x
True/False
1. A xprimary xpurpose x of xforming x projects x is xto x assign x the xresponsibility
xfor xaccomplishing xsome xorganizational xtask xto xa xspecific xperson xor xsmall
xgroup.
Answer: x True
Response: xSee xsection x1.1
xLevel: xeasy
2. One xof xthe xfew xsimilarities xbetween xproject xmanagement xand xgeneral
xmanagement xis xthat xboth xexist xin xthe xwell-defined xorganizational xstructure xof
x superior/subordinates xin xthe xoverall xorganization.
Answer: x False
Response: xSee xsection x1.2
xLevel: xmedium
3. Many xrecent xdevelopments xin xproject xmanagement xare xbeing xdriven xby xchanges
x in xthe xnature xof xthe xAmerican xworkforce.
Answer: x False
Response: xSee xsection x1.1
xLevel: xmedium
4. There xhas xbeen xa xgrowing xuse xof xprojects xto xachieve xan xorganization’s
x strategic xgoals
Answer: x True
Response: xSee xsection x1.1
xLevel: xmedium
,5. While xgeneral x managers x have xtheir xauthority x limited x to x specific xareas x in
xthe xoverall xorganization, xproject xmanagers xhave xauthority xover xany xactivity
xrequired xby xthe xproject.
Answer: x False
Response: xSee xsection x1.2
xLevel: xmedium
6. Projects x are x always x carried x out x under x conditions x of x uncertainty.
Answer: x True
Response: xSee xsection x1.3
xLevel: xeasy
7. One x can x trade-off x time x and x cost x when x managing x a x project, x but x the
x project’s xtechnical xspecifications xmust xbe xmaintained xexactly xas xthe xclient
xinitially xspecifies.
Answer: x False
Response: xSee xsection x1.3
xLevel: xmedium
8. Nonnumeric xproject xselection xmethods xare xonly xsuitable xif xnumeric xmethods
xare xnot xavailable.
Answer: x False
Response: xSee xsection x1.5
xLevel: xmedium
9. When xusing xfinancial xmethods xfor xselecting xprojects, xthe xpayback xperiod xis
x the xsimplest xand xbest xmethod xto xuse.
Answer: x False
Response: xSee xsection x1.5
xLevel: xmedium
10 Rank-ordering x a x large x number x of x projects x can x be x done x with x a x Q-sort.
, Answer: x True
Response: xSee xsection x1.5
xLevel: xmedium
11. A xdisadvantage xof xusing xthe xpayback xperiod xmethod xfor xselecting xprojects xis
x that xit x cannot x reflect x the xtime-value xof xmoney.
Answer: x True
Response: xSee xsection x1.5
xLevel: xmedium
12. A x disadvantage x of x using xthe x discounted x cash x flow x method x (or xnet
x present xvalue) xfor xselecting xprojects xis xthat xit xignores xall xnon-monetary
xfactors x associated xwith xthe xproject xexcept xrisk.
Answer: x True
Response: xSee xsection x1.5
xLevel: xmedium
13. A xdisadvantage xof xusing xscoring xmodels xrather xthan xfinancial xmodels xfor
xselecting x projects x is x that x they x cannot x include x the x project’s
x profitability.
Answer: x False
Response: xSee xsection x1.5
xLevel: xmedium
14. A xPM xdoes xnot xneed xto xunderstand xwhy xa xproject x is xselected xfor xfunding
x because xhe xdid xnot xinitiate xthe xprocess.
Answer: x False
Response: xSee xsection x1.5
xLevel: xmedium
15. The xmain xdistinction xbetween xplatform xand xbreakthrough xprojects xis xthat
xthe xformer xusually xdepend xon xexisting xtechnology.
x x
Project Management in Practice, 7th Edition Meredith
x x x x x x
Chapter 1-8
x
Chapter 1: The World of Project Management
x x x x x x
True/False
1. A xprimary xpurpose x of xforming x projects x is xto x assign x the xresponsibility
xfor xaccomplishing xsome xorganizational xtask xto xa xspecific xperson xor xsmall
xgroup.
Answer: x True
Response: xSee xsection x1.1
xLevel: xeasy
2. One xof xthe xfew xsimilarities xbetween xproject xmanagement xand xgeneral
xmanagement xis xthat xboth xexist xin xthe xwell-defined xorganizational xstructure xof
x superior/subordinates xin xthe xoverall xorganization.
Answer: x False
Response: xSee xsection x1.2
xLevel: xmedium
3. Many xrecent xdevelopments xin xproject xmanagement xare xbeing xdriven xby xchanges
x in xthe xnature xof xthe xAmerican xworkforce.
Answer: x False
Response: xSee xsection x1.1
xLevel: xmedium
4. There xhas xbeen xa xgrowing xuse xof xprojects xto xachieve xan xorganization’s
x strategic xgoals
Answer: x True
Response: xSee xsection x1.1
xLevel: xmedium
,5. While xgeneral x managers x have xtheir xauthority x limited x to x specific xareas x in
xthe xoverall xorganization, xproject xmanagers xhave xauthority xover xany xactivity
xrequired xby xthe xproject.
Answer: x False
Response: xSee xsection x1.2
xLevel: xmedium
6. Projects x are x always x carried x out x under x conditions x of x uncertainty.
Answer: x True
Response: xSee xsection x1.3
xLevel: xeasy
7. One x can x trade-off x time x and x cost x when x managing x a x project, x but x the
x project’s xtechnical xspecifications xmust xbe xmaintained xexactly xas xthe xclient
xinitially xspecifies.
Answer: x False
Response: xSee xsection x1.3
xLevel: xmedium
8. Nonnumeric xproject xselection xmethods xare xonly xsuitable xif xnumeric xmethods
xare xnot xavailable.
Answer: x False
Response: xSee xsection x1.5
xLevel: xmedium
9. When xusing xfinancial xmethods xfor xselecting xprojects, xthe xpayback xperiod xis
x the xsimplest xand xbest xmethod xto xuse.
Answer: x False
Response: xSee xsection x1.5
xLevel: xmedium
10 Rank-ordering x a x large x number x of x projects x can x be x done x with x a x Q-sort.
, Answer: x True
Response: xSee xsection x1.5
xLevel: xmedium
11. A xdisadvantage xof xusing xthe xpayback xperiod xmethod xfor xselecting xprojects xis
x that xit x cannot x reflect x the xtime-value xof xmoney.
Answer: x True
Response: xSee xsection x1.5
xLevel: xmedium
12. A x disadvantage x of x using xthe x discounted x cash x flow x method x (or xnet
x present xvalue) xfor xselecting xprojects xis xthat xit xignores xall xnon-monetary
xfactors x associated xwith xthe xproject xexcept xrisk.
Answer: x True
Response: xSee xsection x1.5
xLevel: xmedium
13. A xdisadvantage xof xusing xscoring xmodels xrather xthan xfinancial xmodels xfor
xselecting x projects x is x that x they x cannot x include x the x project’s
x profitability.
Answer: x False
Response: xSee xsection x1.5
xLevel: xmedium
14. A xPM xdoes xnot xneed xto xunderstand xwhy xa xproject x is xselected xfor xfunding
x because xhe xdid xnot xinitiate xthe xprocess.
Answer: x False
Response: xSee xsection x1.5
xLevel: xmedium
15. The xmain xdistinction xbetween xplatform xand xbreakthrough xprojects xis xthat
xthe xformer xusually xdepend xon xexisting xtechnology.
