Test Bank
Project Management In Practice,
By Meredith & Shafer,
7th Edition
,Test Bank For
Project Management In Practice, 7th Edition Meredith
Chapter 1-8
Chapter 1: The World Of Project Management
True/False
1. A Primary Purpose Of Forming Projects Is To Assign The Responsibility
For Accomplishing Some Organizational Task To A Specific Person Or
Small Group.
Answer: True
Response: See Section 1.1
Level: Easy
2. One Of The Few Similarities Between Project Management And General
Management Is That Both Exist In The Well-Defined Organizational Structure Of
Superior/Subordinates In The Overall Organization.
Answer: False
Response: See Section 1.2
Level: Medium
3. Many Recent Developments In Project Management Are Being Driven By
Changes In The Nature Of The American Workforce.
Answer: False
Response: See Section 1.1
Level: Medium
4. There Has Been A Growing Use Of Projects To Achieve An Organization’s
Strategic Goals
Answer: True
Response: See Section 1.1
Level: Medium
,5. While General Managers Have Their Authority Limited To Specific Areas In
The Overall Organization, Project Managers Have Authority Over Any Activity
Required By The Project.
Answer: False
Response: See Section 1.2
Level: Medium
6. Projects Are Always Carried Out Under Conditions Of Uncertainty.
Answer: True
Response: See Section 1.3
Level: Easy
7. One Can Trade-Off Time And Cost When Managing A Project, But The Project’s
Technical Specifications Must Be Maintained Exactly As The Client Initially
Specifies.
Answer: False
Response: See Section 1.3
Level: Medium
8. Nonnumeric Project Selection Methods Are Only Suitable If Numeric Methods
Are Not Available.
Answer: False
Response: See Section 1.5
Level: Medium
9. When Using Financial Methods For Selecting Projects, The Payback Period Is
The Simplest And Best Method To Use.
Answer: False
Response: See Section 1.5
Level: Medium
10 Rank-Ordering A Large Number Of Projects Can Be Done With A Q-Sort.
, Answer: True
Response: See Section 1.5
Level: Medium
11. A Disadvantage Of Using The Payback Period Method For Selecting Projects Is
That It Cannot Reflect The Time-Value Of Money.
Answer: True
Response: See Section 1.5
Level: Medium
12. A Disadvantage Of Using The Discounted Cash Flow Method (Or Net Present
Value) For Selecting Projects Is That It Ignores All Non-Monetary Factors
Associated With The Project Except Risk.
Answer: True
Response: See Section 1.5
Level: Medium
13. A Disadvantage Of Using Scoring Models Rather Than Financial Models For
Selecting Projects Is That They Cannot Include The Project’s Profitability.
Answer: False
Response: See Section 1.5
Level: Medium
14. A Pm Does Not Need To Understand Why A Project Is Selected For Funding
Because He Did Not Initiate The Process.
Answer: False
Response: See Section 1.5
Level: Medium
15. The Main Distinction Between Platform And Breakthrough Projects Is That
The Former Usually Depend On Existing Technology.
Project Management In Practice,
By Meredith & Shafer,
7th Edition
,Test Bank For
Project Management In Practice, 7th Edition Meredith
Chapter 1-8
Chapter 1: The World Of Project Management
True/False
1. A Primary Purpose Of Forming Projects Is To Assign The Responsibility
For Accomplishing Some Organizational Task To A Specific Person Or
Small Group.
Answer: True
Response: See Section 1.1
Level: Easy
2. One Of The Few Similarities Between Project Management And General
Management Is That Both Exist In The Well-Defined Organizational Structure Of
Superior/Subordinates In The Overall Organization.
Answer: False
Response: See Section 1.2
Level: Medium
3. Many Recent Developments In Project Management Are Being Driven By
Changes In The Nature Of The American Workforce.
Answer: False
Response: See Section 1.1
Level: Medium
4. There Has Been A Growing Use Of Projects To Achieve An Organization’s
Strategic Goals
Answer: True
Response: See Section 1.1
Level: Medium
,5. While General Managers Have Their Authority Limited To Specific Areas In
The Overall Organization, Project Managers Have Authority Over Any Activity
Required By The Project.
Answer: False
Response: See Section 1.2
Level: Medium
6. Projects Are Always Carried Out Under Conditions Of Uncertainty.
Answer: True
Response: See Section 1.3
Level: Easy
7. One Can Trade-Off Time And Cost When Managing A Project, But The Project’s
Technical Specifications Must Be Maintained Exactly As The Client Initially
Specifies.
Answer: False
Response: See Section 1.3
Level: Medium
8. Nonnumeric Project Selection Methods Are Only Suitable If Numeric Methods
Are Not Available.
Answer: False
Response: See Section 1.5
Level: Medium
9. When Using Financial Methods For Selecting Projects, The Payback Period Is
The Simplest And Best Method To Use.
Answer: False
Response: See Section 1.5
Level: Medium
10 Rank-Ordering A Large Number Of Projects Can Be Done With A Q-Sort.
, Answer: True
Response: See Section 1.5
Level: Medium
11. A Disadvantage Of Using The Payback Period Method For Selecting Projects Is
That It Cannot Reflect The Time-Value Of Money.
Answer: True
Response: See Section 1.5
Level: Medium
12. A Disadvantage Of Using The Discounted Cash Flow Method (Or Net Present
Value) For Selecting Projects Is That It Ignores All Non-Monetary Factors
Associated With The Project Except Risk.
Answer: True
Response: See Section 1.5
Level: Medium
13. A Disadvantage Of Using Scoring Models Rather Than Financial Models For
Selecting Projects Is That They Cannot Include The Project’s Profitability.
Answer: False
Response: See Section 1.5
Level: Medium
14. A Pm Does Not Need To Understand Why A Project Is Selected For Funding
Because He Did Not Initiate The Process.
Answer: False
Response: See Section 1.5
Level: Medium
15. The Main Distinction Between Platform And Breakthrough Projects Is That
The Former Usually Depend On Existing Technology.
