BBA 6th Sem PROJECT MANAGEMENT: UNIT WISE MCQs

Contents
1 UNIT 1 : 50 Multiple-Choice Questions (MCQs): ............................................................................ 2
2 UNIT 2: 50 Multiple-Choice Questions (MCQs) ............................................................................ 12
3 UNIT 3: 50 Multiple-Choice Questions (MCQs): ........................................................................... 22
4 Unit 4: 50 Multiple-Choice Questions (MCQs):........................................................................... 32

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1 UNIT 1 : 50 Multiple-Choice Questions (MCQs):

Definitions & Characteristics of Projects

1. What is a project?

o a) A routine task

o b) A temporary endeavor to achieve a specific goal

o c) A continuous process

o d) None of the above

Answer: b

2. Which of the following is NOT a characteristic of a project?

o a) Temporary

o b) Unique

o c) Predictable outcomes

o d) Defined objectives
Answer: c

3. Projects are different from operations because they are:

o a) Ongoing

o b) Temporary and unique

o c) Repetitive

o d) Performed by machines
Answer: b

4. The primary purpose of a project is to:

o a) Maintain status quo

o b) Create a unique product or service

o c) Reduce costs

o d) Increase resources
Answer: b

5. Which of the following is NOT an example of a project?

o a) Building a house

o b) Conducting a research study

o c) Manufacturing cars in a factory

o d) Developing a software application

Answer: c

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Types of Projects

6. Which of the following is a type of project?

o a) Construction project

o b) IT project

o c) Research project

o d) All of the above

Answer: d

7. What type of project involves the development of new software?

o a) Infrastructure project

o b) IT project

o c) Social project

o d) Research project
Answer: b

8. Which project focuses on improving community welfare?

o a) IT project

o b) Social project

o c) Manufacturing project

o d) Research project
Answer: b

9. Infrastructure projects typically involve:

o a) Building bridges and roads

o b) Writing software

o c) Designing marketing campaigns

o d) Conducting surveys
Answer: a

10. An example of a research project is:

o a) Conducting a market survey

o b) Building a skyscraper

o c) Installing solar panels

o d) Creating a transportation network

Answer: a

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Project Life Cycle

11. Which stage of the project life cycle involves feasibility studies?

o a) Planning

o b) Initiation

o c) Execution

o d) Closure
Answer: b

12. In which stage are deliverables handed over?

o a) Planning

o b) Execution

o c) Monitoring

o d) Closure
Answer: d

13. What is the primary purpose of the execution phase?

o a) Define project objectives

o b) Complete project deliverables

o c) Monitor project performance

o d) Close the project

Answer: b

14. The project life cycle includes:

o a) Only planning and execution

o b) Four distinct phases

o c) Ongoing operations

o d) Undefined steps
Answer: b

15. What comes after the planning phase in the project life cycle?

o a) Initiation

o b) Execution

o c) Closure

o d) Risk assessment
Answer: b

Project Management Process

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 16. What is the first step in the project management process?

o a) Execution

o b) Planning

o c) Initiation

o d) Monitoring
Answer: c

17. Monitoring and controlling occur:

o a) Before planning

o b) Throughout the project

o c) Only during execution

o d) After closure
Answer: b

18. Which of the following is a key element of the project management process?

o a) Budgeting

o b) Execution

o c) Communication

o d) All of the above

Answer: d

19. Why is planning critical in project management?

o a) To finalize deliverables

o b) To create a roadmap for achieving project objectives

o c) To test project tools

o d) To avoid team discussions

Answer: b

20. What is a deliverable in a project?

o a) An ongoing task

o b) A specific output or result of a project

o c) An unforeseen risk

o d) A milestone
Answer: b

Tools and Techniques

21. Which of the following is a visual project management tool?

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 o a) PERT chart

o b) Balance sheet

o c) Financial statement

o d) None of the above

Answer: a

22. What is the Critical Path Method (CPM) used for?

o a) Cost estimation

o b) Time scheduling

o c) Risk management

o d) Team building
Answer: b

23. What does a Gantt chart represent?

o a) Budget allocation

o b) Task schedules

o c) Risk assessment

o d) Project termination
Answer: b

24. Which project management tool is best for estimating timelines?

o a) SWOT analysis

o b) CPM

o c) Financial ratio analysis

o d) Organizational structure
Answer: b

25. What is Earned Value Analysis (EVA)?

o a) A project scheduling method

o b) A performance measurement tool

o c) A quality control process

o d) A resource allocation method

Answer: b

Project Team

26. What is the primary role of a project team?

o a) Supervise budgets

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 o b) Execute project tasks

o c) Design organizational structures

o d) Conduct risk analysis

Answer: b

27. Who leads the project team?

o a) Team member

o b) Stakeholder

o c) Project manager

o d) Board of directors
Answer: c

28. What is the main challenge in managing project teams?

o a) High salaries

o b) Lack of diversity

o c) Communication and coordination issues

o d) Organizational structures
Answer: c

29. What factor most influences team performance?

o a) Tools used

o b) Leadership style

o c) Budget size

o d) Project type
Answer: b

30. Who are stakeholders in a project?

o a) Only team members

o b) Individuals or groups impacted by the project

o c) Only the project manager

o d) The finance team

Answer: b

Scope of Project Management

31. What is project scope?

o a) The duration of a project

o b) The defined boundaries of work

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 o c) The cost of the project

o d) The project’s team structure

Answer: b

32. What is scope creep?

o a) Completing the project ahead of schedule

o b) Gradual expansion of the project scope

o c) Reduction in project tasks

o d) Early project termination

Answer: b

33. What is a Work Breakdown Structure (WBS)?

o a) A financial analysis

o b) A project termination process

o c) A hierarchical decomposition of project tasks

o d) A risk assessment tool

Answer: c

Project Organization

34. What is project organization?

o a) A project planning tool

o b) The framework defining roles and responsibilities

o c) The execution strategy

o d) A budgeting method
Answer: b

35. Which organizational structure is most flexible?

o a) Functional

o b) Projectized

o c) Matrix

o d) None of the above

Answer: c

36. What is a functional organizational structure?

o a) Team members report only to the project manager

o b) Team members report to functional heads

o c) A structure for multinational companies

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 o d) None of the above
Answer: b

Project Organization (Continued)

37. What is a projectized organizational structure?

o a) A structure where team members work exclusively on the project

o b) A structure with no specific reporting hierarchy

o c) A structure limited to operational tasks

o d) None of the above

Answer: a

38. In a matrix structure, team members:

o a) Report only to the project manager

o b) Report to both functional and project managers

o c) Have no reporting requirements

o d) Work independently
Answer: b

39. Which structure is suitable for large, complex projects?

o a) Functional

o b) Projectized

o c) Matrix

o d) Simple hierarchical
Answer: c

40. Why is project organization important?

o a) To ensure role clarity and resource allocation

o b) To reduce the need for planning

o c) To avoid stakeholder involvement

o d) None of the above

Answer: a

Integrated Concepts

41. What is the relationship between the project life cycle and project management process?

o a) The project life cycle is independent of the project management process

o b) The project management process supports each stage of the life cycle

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 o c) They are unrelated

o d) They are the same

Answer: b

42. Which phase is common in both the project life cycle and project management process?

o a) Monitoring and controlling

o b) Stakeholder analysis

o c) Procurement

o d) None of the above

Answer: a

43. How do tools like Gantt charts and CPM enhance project management?

o a) By improving creativity

o b) By providing clear timelines and task dependencies

o c) By reducing project costs

o d) By replacing stakeholder communication

Answer: b

44. What is the role of the project team in ensuring effective project management?

o a) To define the project scope

o b) To execute tasks and meet deliverables

o c) To allocate resources

o d) To monitor other projects

Answer: b

Risk and Performance Monitoring

45. Which tool helps monitor project performance?

o a) Work Breakdown Structure (WBS)

o b) Earned Value Analysis (EVA)

o c) SWOT analysis

o d) Project charter
Answer: b

46. What does Schedule Performance Index (SPI) measure?

o a) Cost efficiency of the project

o b) Adherence to the planned schedule

o c) Quality of deliverables

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 o d) Risk mitigation
Answer: b

47. How can milestone analysis assist in project monitoring?

o a) By identifying risks

o b) By tracking progress at key stages

o c) By defining the scope

o d) By assigning team roles

Answer: b

Real-World Application

48. Why is defining the project scope critical?

o a) To estimate the duration

o b) To avoid scope creep and ensure clear objectives

o c) To form a project team

o d) To allocate resources
Answer: b

49. Which type of project is best managed using PERT?

o a) Routine operational projects

o b) Projects with uncertain activity durations

o c) Highly repetitive projects

o d) Simple manufacturing projects

Answer: b

50. What is the main challenge of managing a large project team?

o a) Budget constraints

o b) Resource allocation

o c) Ensuring communication and coordination

o d) Following a project life cycle

Answer: c

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2 UNIT 2: 50 Multiple-Choice Questions (MCQs)

Project Identification & Selection

1. What is the first step in project identification?

o a) Screening ideas

o b) Generating ideas

o c) Selecting projects

o d) Budgeting
Answer: b

2. What is the primary goal of project identification?

o a) To allocate resources

o b) To recognize potential projects

o c) To finalize the project timeline

o d) To select team members

Answer: b

3. Which of the following methods is commonly used for idea generation?

o a) SWOT analysis

o b) Brainstorming

o c) Market surveys

o d) All of the above

Answer: d

4. What is meant by "project screening"?

o a) Selecting the project team

o b) Assessing project ideas based on criteria

o c) Generating project ideas

o d) Scheduling the project

Answer: b

5. Which of the following is NOT a factor in project screening?

o a) Market demand

o b) Legal feasibility

o c) Employee satisfaction

o d) Technical feasibility
Answer: c

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 6. What is the purpose of project selection?

o a) To finalize all ideas

o b) To choose the best project among alternatives

o c) To determine project risks

o d) To execute the project

Answer: b

7. Which factor is most critical during project identification?

o a) Organizational capacity

o b) Team preferences

o c) Market demand

o d) Stakeholder involvement
Answer: c

8. The output of the project identification process is:

o a) A list of potential projects

o b) A completed project

o c) A financial statement

o d) A resource allocation plan

Answer: a

Generation of Ideas

9. What is brainstorming?

o a) An analysis method

o b) A collaborative idea generation technique

o c) A financial evaluation process

o d) A project scheduling tool

Answer: b

10. Which of these methods is used for idea generation?

o a) Brainstorming

o b) Focus groups

o c) Literature review

o d) All of the above

Answer: d

11. The generation of ideas is influenced by:

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 o a) Market trends

o b) Technological advances

o c) Competitive environment

o d) All of the above

Answer: d

12. What is a common technique for creative idea generation?

o a) SWOT analysis

o b) Brainstorming sessions

o c) Market surveys

o d) Project rating index

Answer: b

13. Which source can be used for generating project ideas?

o a) Customer feedback

o b) Industry reports

o c) Academic research

o d) All of the above

Answer: d

Approaches to Project Screening and Selection

14. What is the primary focus of project screening?

o a) Generating ideas

o b) Evaluating project feasibility

o c) Budget planning

o d) Team allocation
Answer: b

15. Which approach evaluates projects based on multiple criteria?

o a) Screening matrix

o b) Cost-benefit analysis

o c) Financial statements

o d) Gantt charts
Answer: a

16. What does a project rating index indicate?

o a) The financial feasibility of a project

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 o b) The overall attractiveness of a project

o c) The timeline of a project

o d) The risk involved in a project

Answer: b

17. Which of the following is an approach to project selection?

o a) Payback period

o b) Net Present Value (NPV)

o c) Internal Rate of Return (IRR)

o d) All of the above

Answer: d

18. What is the first step in project screening?

o a) Evaluating risks

o b) Generating a project rating index

o c) Setting screening criteria

o d) Allocating resources
Answer: c

Market & Demand Analysis

19. What is market analysis?

o a) Evaluating financial risks

o b) Assessing market demand and competition

o c) Planning the project schedule

o d) Allocating project resources

Answer: b

20. Which method is commonly used in demand forecasting?

o a) Survey methods

o b) Trend projection methods

o c) Regression analysis

o d) All of the above

Answer: d

21. What is a limitation of survey methods in market analysis?

o a) Lack of numerical data

o b) High cost and time consumption

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 o c) Unreliable projections

o d) Limited stakeholder involvement

Answer: b

22. Which trend projection method uses historical data to forecast demand?

o a) Exponential smoothing

o b) Moving averages

o c) Time series analysis

o d) All of the above

Answer: d

23. What is the primary goal of demand analysis?

o a) Reduce project costs

o b) Understand market needs and potential

o c) Identify team roles

o d) Conduct risk assessments

Answer: b

24. What type of data is essential for market analysis?

o a) Customer demographics

o b) Industry trends

o c) Sales forecasts

o d) All of the above

Answer: d

Project Risk Management

25. What is project risk?

o a) A financial statement error

o b) An uncertain event that can impact project objectives

o c) A project milestone

o d) A routine project task

Answer: b

26. What are the three main types of project risks?

o a) Market, operational, and financial risks

o b) Natural, technical, and stakeholder risks

o c) Legal, quality, and compliance risks

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 o d) Cost, schedule, and performance risks
Answer: d

27. Which tool is used for risk identification?

o a) Risk register

o b) Gantt chart

o c) Network diagram

o d) Cost-benefit analysis
Answer: a

28. Which technique is used for risk prioritization?

o a) Risk matrix

o b) Brainstorming

o c) Regression analysis

o d) Project charter
Answer: a

29. What is a risk mitigation strategy?

o a) Ignoring potential risks

o b) Developing plans to reduce the likelihood of risks

o c) Allocating more resources

o d) Delaying the project

Answer: b

30. Which of the following is a qualitative risk analysis technique?

o a) Risk register

o b) Risk probability and impact matrix

o c) Monte Carlo simulation

o d) Decision tree analysis

Answer: b

31. What is the output of a risk assessment?

o a) A detailed risk management plan

o b) Project deliverables

o c) Scope documents

o d) Budgetary allocations
Answer: a

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Integrated Topics

32. Why is market analysis critical for project selection?

o a) To identify profitability potential

o b) To understand customer needs and trends

o c) To reduce risks

o d) All of the above

Answer: d

33. How do demand analysis techniques improve project feasibility?

o a) By ensuring technical resources

o b) By providing market insights

o c) By allocating budgets

o d) By minimizing team conflicts

Answer: b

34. What is the role of a project rating index in selection?

o a) To rank projects based on attractiveness and feasibility

o b) To allocate project costs

o c) To forecast market trends

o d) To monitor project schedules

Answer: a

Project Risk Management (Continued)

35. What is the first step in the risk management process?

o a) Risk analysis

o b) Risk identification

o c) Risk response planning

o d) Risk monitoring
Answer: b

36. Which of the following is a quantitative risk analysis technique?

o a) SWOT analysis

o b) Decision tree analysis

o c) Risk probability matrix

o d) Brainstorming
Answer: b

37. What is risk mitigation?

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 o a) Avoiding risks entirely

o b) Reducing the likelihood or impact of risks

o c) Ignoring low-priority risks

o d) Allocating all resources to risky activities

Answer: b

38. What is contingency planning in risk management?

o a) Planning for unexpected events

o b) Avoiding risks at all costs

o c) Ignoring potential risks

o d) Repeating tasks to mitigate risks

Answer: a

39. Which of the following is an example of risk monitoring?

o a) Regularly reviewing the risk register

o b) Generating new project ideas

o c) Conducting demand analysis

o d) Analyzing market trends

Answer: a

40. What does a risk register document?

o a) Identified risks, their assessment, and mitigation plans

o b) The project's timeline

o c) The market demand projections

o d) Financial statements of the project

Answer: a

Project Rating Index

41. How is a project rating index calculated?

o a) By assessing project costs

o b) By scoring projects on various criteria

o c) By analyzing competitor projects

o d) By reviewing past project performances

Answer: b

42. What is the purpose of a project rating index?

o a) To determine project risks

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 o b) To prioritize and rank projects based on feasibility

o c) To finalize project schedules

o d) To allocate resources among projects

Answer: b

43. Which factor is most critical in a project rating index?

o a) Market demand

o b) Project feasibility

o c) Stakeholder engagement

o d) Budget allocation
Answer: b

44. What criteria can be included in a project rating index?

o a) Market demand and risk

o b) Financial feasibility

o c) Resource availability

o d) All of the above

Answer: d

Market & Demand Analysis (Continued)

45. What is the primary objective of market surveys in project management?

o a) To estimate project timelines

o b) To gather customer preferences and market trends

o c) To evaluate risk factors

o d) To calculate financial feasibility

Answer: b

46. What is a limitation of trend projection methods?

o a) Lack of accuracy

o b) Dependence on historical data

o c) High implementation cost

o d) Lack of stakeholder input

Answer: b

47. Which demand analysis method uses customer surveys?

o a) Market projection analysis

o b) Survey method

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 o c) Time series analysis

o d) Risk probability matrix

Answer: b

48. How does regression analysis help in demand forecasting?

o a) By predicting future demand based on historical relationships

o b) By analyzing competitive strategies

o c) By identifying high-risk tasks

o d) By scheduling project milestones

Answer: a

49. What is the role of market analysis in project selection?

o a) Identifying opportunities and demand trends

o b) Finalizing resource allocation

o c) Generating financial projections

o d) Reducing team conflicts

Answer: a

50. Which tool combines market analysis and demand forecasting?

o a) SWOT analysis

o b) Time series analysis

o c) Regression modeling

o d) Both b and c
Answer: d

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3 UNIT 3: 50 Multiple-Choice Questions (MCQs):

Project Costing

1. What is the fundamental component of project cost?

o a) Fixed cost

o b) Direct and indirect costs

o c) Normal cost

o d) Variable cost
Answer: b

2. Which of the following is a direct cost?

o a) Salaries of project staff

o b) Rent for office space

o c) Utility bills

o d) Insurance premiums
Answer: a

3. What are indirect costs?

o a) Costs directly attributable to a project

o b) Overhead expenses like utilities and administration

o c) Costs incurred before the project starts

o d) Recurring costs
Answer: b

4. Which of the following is an example of a recurring cost?

o a) One-time purchase of equipment

o b) Monthly salaries

o c) Project design cost

o d) Project closure cost

Answer: b

5. What is a non-recurring cost?

o a) Costs incurred repeatedly during the project

o b) One-time expenses for a specific task or activity

o c) Overhead costs

o d) Variable costs
Answer: b

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 6. Which of the following is a fixed cost?

o a) Labor wages

o b) Equipment lease payment

o c) Raw material purchase

o d) Transportation cost
Answer: b

7. What are variable costs?

o a) Costs that remain constant regardless of production

o b) Costs that change based on the level of activity

o c) Indirect costs

o d) One-time expenses
Answer: b

8. What are expedite costs?

o a) Costs associated with speeding up project activities

o b) Indirect costs

o c) Recurring costs

o d) Fixed costs
Answer: a

9. Which of the following is a normal cost?

o a) Costs associated with expediting activities

o b) Regular costs required to complete tasks on schedule

o c) Indirect costs like overheads

o d) None of the above

Answer: b

10. Which cost is incurred due to an unexpected change in the project?

o a) Direct cost

o b) Expedite cost

o c) Fixed cost

o d) Non-recurring cost
Answer: b

Project Financing and Budgeting

11. What is project financing?

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 o a) Allocating resources to execute tasks

o b) Raising funds to support project activities

o c) Evaluating project risks

o d) Monitoring project schedules

Answer: b

12. Which of the following is a source of project finance?

o a) Equity capital

o b) Debt financing

o c) Government grants

o d) All of the above

Answer: d

13. What is the primary purpose of project budgeting?

o a) To estimate timelines

o b) To allocate financial resources effectively

o c) To reduce project risks

o d) To finalize the scope

Answer: b

14. Which is a common method of project financing?

o a) Crowdfunding

o b) Bank loans

o c) Venture capital

o d) All of the above

Answer: d

15. What does Social Cost Benefit Analysis (SCBA) evaluate?

o a) Costs to the stakeholders

o b) The overall social and economic impact of a project

o c) Internal project costs only

o d) Financial risks
Answer: b

16. Which of the following is a benefit considered in SCBA?

o a) Environmental improvements

o b) Increased employment opportunities

o c) Enhanced public services

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 o d) All of the above
Answer: d

17. What is the main focus of SCBA?

o a) Profitability

o b) Social welfare and economic gains

o c) Resource allocation

o d) Cost estimation
Answer: b

18. Which technique is often used in project budgeting?

o a) Earned Value Analysis (EVA)

o b) Cost-Benefit Analysis (CBA)

o c) Resource leveling

o d) Risk analysis
Answer: b

Project Scheduling and Network Analysis

19. What is project scheduling?

o a) Allocating resources

o b) Defining project milestones and timelines

o c) Risk management

o d) Budgeting
Answer: b

20. Which is the first step in project scheduling?

o a) Identifying tasks

o b) Allocating resources

o c) Monitoring progress

o d) Defining scope
Answer: a

21. What is network analysis?

o a) Analyzing team performance

o b) Planning project activities using diagrams

o c) Risk management

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 o d) Budget monitoring
Answer: b

22. Which tool is used in network analysis?

o a) CPM

o b) PERT

o c) Gantt charts

o d) Both a and b
Answer: d

23. What is the Critical Path Method (CPM)?

o a) A tool to analyze task dependencies and timelines

o b) A budgeting tool

o c) A risk analysis method

o d) A quality management technique

Answer: a

24. What is the primary focus of CPM?

o a) Identifying the most cost-efficient tasks

o b) Determining the longest sequence of critical tasks

o c) Allocating project resources

o d) Analyzing team productivity

Answer: b

25. What does PERT stand for?

o a) Project Evaluation and Resource Tracking

o b) Program Evaluation and Review Technique

o c) Project Efficiency and Risk Tracking

o d) Program Efficiency Review Technique

Answer: b

26. How is PERT different from CPM?

o a) CPM is probabilistic, while PERT is deterministic

o b) PERT is probabilistic, while CPM is deterministic

o c) Both focus on budget analysis

o d) None of the above

Answer: b

27. Which of the following is a step in project network design?

26
 o a) Identifying tasks and dependencies

o b) Estimating task durations

o c) Drawing network diagrams

o d) All of the above

Answer: d

28. What is a node in a network diagram?

o a) A representation of an activity or event

o b) A critical path

o c) A resource

o d) A milestone
Answer: a

29. What is the purpose of network diagrams?

o a) To monitor budget allocation

o b) To visualize the sequence of project activities

o c) To identify project risks

o d) To finalize deliverables
Answer: b

Integrated Topics

30. What is float or slack in CPM?

o a) The time an activity can be delayed without delaying the project

o b) The total project duration

o c) The budget surplus

o d) None of the above

Answer: a

31. What is the main limitation of CPM?

o a) Ignores probabilistic task durations

o b) Cannot handle large projects

o c) Difficult to monitor critical tasks

o d) Lacks automation
Answer: a

32. Which chart is helpful for visualizing project schedules?

o a) Network diagram

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 o b) Gantt chart

o c) Fishbone diagram

o d) Pareto chart
Answer: b

33. Which is a key output of network analysis?

o a) Critical path

o b) Task budget

o c) Stakeholder analysis

o d) Resource allocation
Answer: a

34. What is a "dummy activity" in PERT?

o a) An activity with zero duration used to maintain logical dependencies

o b) A non-essential task

o c) A repetitive task

o d) A high-risk activity
Answer: a

35. Why is PERT suitable for research projects?

o a) Because of its probabilistic nature

o b) Because it focuses on costs

o c) Because it uses standard durations

o d) Because it minimizes team conflicts

Answer: a

36. What is a milestone in project scheduling?

o a) A critical activity in a network

o b) A significant point or event in a project

o c) A cost overrun indicator

o d) A recurring task
Answer: b

Project Scheduling and Network Analysis (Continued)

37. What is the main objective of project scheduling?

o a) To identify project risks

o b) To ensure timely completion of tasks

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 o c) To allocate financial resources

o d) To determine project quality standards

Answer: b

38. What is the earliest time an activity can start called in network analysis?

o a) Float time

o b) Early start time (EST)

o c) Critical time

o d) Expected time
Answer: b

39. What is the latest time an activity can finish without delaying the project?

o a) Early finish time (EFT)

o b) Late finish time (LFT)

o c) Slack time

o d) Float time
Answer: b

40. What does the critical path in CPM represent?

o a) The shortest sequence of tasks in the project

o b) The longest sequence of tasks that determines the project duration

o c) A path with the least resources

o d) The most expensive set of tasks

Answer: b

41. What is a significant advantage of using PERT?

o a) It focuses on deterministic task durations

o b) It accounts for uncertainty in activity durations

o c) It is easier to use than CPM

o d) It eliminates all project risks

Answer: b

42. Which of the following techniques uses three time estimates for activity duration?

o a) CPM

o b) PERT

o c) Gantt chart

o d) Milestone tracking
Answer: b

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43. What are the three time estimates used in PERT?

o a) Optimistic, pessimistic, and most likely

o b) Start, finish, and critical

o c) Estimated, actual, and forecasted

o d) Early, late, and float

Answer: a

44. What is the formula for the expected time (TE) in PERT?

o a) (Optimistic + Pessimistic + Most Likely) ÷ 3

o b) (Optimistic + 4 × Most Likely + Pessimistic) ÷ 6

o c) (Pessimistic + Most Likely) ÷ 2

o d) (Optimistic + Most Likely) ÷ 2

Answer: b

45. What is the main purpose of determining float in CPM?

o a) To manage resource allocation

o b) To identify tasks that can be delayed without affecting the project timeline

o c) To estimate project costs

o d) To calculate task durations

Answer: b

46. In a network diagram, what does a "critical activity" indicate?

o a) An activity with float time

o b) An activity that cannot be delayed without delaying the project

o c) A non-essential task

o d) A recurring expense
Answer: b

47. What is the main limitation of PERT?

o a) It does not consider resource constraints

o b) It only focuses on critical paths

o c) It cannot handle large projects

o d) It is less suitable for routine tasks

Answer: a

48. What does the backward pass in network analysis determine?

o a) Early start and finish times

o b) Late start and finish times

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 o c) Float time

o d) Total project duration

Answer: b

49. What is the primary purpose of milestones in project scheduling?

o a) To track major achievements during the project

o b) To allocate project resources

o c) To calculate project costs

o d) To identify critical paths

Answer: a

50. Why is CPM widely used in construction projects?

o a) It focuses on probabilistic time estimates

o b) It provides a clear, detailed timeline of critical tasks

o c) It eliminates the need for scheduling tools

o d) It automatically manages resources

Answer: b

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4 Unit 4: 50 Multiple-Choice Questions (MCQs):

Monitoring and Control

1. What is the primary objective of project monitoring?

o a) To plan project deliverables

o b) To track and measure project progress

o c) To allocate project resources

o d) To close the project

Answer: b

2. What is the first step in the planning-monitoring-control cycle?

o a) Monitoring progress

o b) Planning tasks

o c) Controlling deviations

o d) Closing the project

Answer: b

3. What does monitoring in project management involve?

o a) Measuring actual performance against the plan

o b) Identifying new risks

o c) Allocating additional resources

o d) Adjusting the scope

Answer: a

4. Which tool is most commonly used for tracking project schedules?

o a) Network diagram

o b) Gantt chart

o c) Risk register

o d) Budget tracker
Answer: b

5. What is the purpose of the control phase in project management?

o a) To measure project scope

o b) To correct deviations from the plan

o c) To close the project

o d) To assign team roles

Answer: b

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 6. Which of the following is a component of the monitoring and control cycle?

o a) Evaluating performance metrics

o b) Risk mitigation planning

o c) Budgeting project costs

o d) Finalizing deliverables
Answer: a

7. Why is continuous monitoring important in project management?

o a) To improve team communication

o b) To ensure alignment with the project plan

o c) To allocate resources effectively

o d) To eliminate project risks

Answer: b

Project Management Information System (PMIS)

8. What is a Project Management Information System (PMIS)?

o a) A software for automating project tasks

o b) A tool to monitor and control project progress

o c) A system for tracking project expenses only

o d) A risk assessment tool

Answer: b

9. Which of the following is a function of PMIS?

o a) Scheduling tasks

o b) Tracking budgets

o c) Managing risks

o d) All of the above

Answer: d

10. What is a key benefit of using PMIS?

o a) Eliminates the need for project managers

o b) Provides real-time project updates

o c) Automates stakeholder communication

o d) Guarantees project success

Answer: b

11. Which PMIS tool helps in visualizing project timelines?

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 o a) Gantt chart

o b) Risk register

o c) Earned Value Analysis (EVA)

o d) Financial tracker
Answer: a

12. PMIS is commonly used for:

o a) Managing project schedules and resources

o b) Finalizing team performance reviews

o c) Allocating non-project resources

o d) Setting organizational goals

Answer: a

Milestone Analysis and Tracking

13. What is a milestone in project management?

o a) A recurring task

o b) A significant event or achievement in the project

o c) A project deliverable

o d) A low-priority activity
Answer: b

14. Why are milestones important?

o a) To monitor project progress

o b) To allocate additional resources

o c) To finalize budgets

o d) To close the project

Answer: a

15. What is a Gantt chart used for?

o a) Risk analysis

o b) Scheduling tasks and tracking progress

o c) Evaluating team performance

o d) Finalizing project deliverables

Answer: b

16. How does milestone tracking assist project managers?

o a) By identifying key achievements

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 o b) By providing checkpoints to measure progress

o c) By enabling course corrections if needed

o d) All of the above

Answer: d

Earned Value Analysis (EVA)

17. What is Earned Value (EV)?

o a) The total cost of the project

o b) The value of work actually completed

o c) The planned cost of the project

o d) The project’s profit margin

Answer: b

18. What does Planned Value (PV) represent in EVA?

o a) The cost of work completed

o b) The cost planned for work to be completed at a point in time

o c) The project's total budget

o d) The cost variance of the project

Answer: b

19. What is Cost Variance (CV)?

o a) EV - PV

o b) EV - Actual Cost (AC)

o c) AC - PV

o d) AC + PV
Answer: b

20. What is Schedule Variance (SV)?

o a) EV - PV

o b) PV - AC

o c) EV + AC

o d) None of the above

Answer: a

21. What is the formula for Cost Performance Index (CPI)?

o a) EV ÷ PV

o b) EV ÷ AC

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 o c) PV ÷ AC

o d) AC ÷ EV
Answer: b

22. What does CPI > 1 indicate?

o a) The project is over budget

o b) The project is under budget

o c) The project is delayed

o d) The project is on track

Answer: b

23. What is the formula for Schedule Performance Index (SPI)?

o a) EV ÷ PV

o b) PV ÷ AC

o c) EV ÷ AC

o d) AC ÷ PV
Answer: a

24. What does SPI < 1 indicate?

o a) The project is ahead of schedule

o b) The project is behind schedule

o c) The project is under budget

o d) The project is over budget

Answer: b

Project Termination

25. What is project termination?

o a) Halting project tasks temporarily

o b) Formal closure of project activities

o c) Postponing project milestones

o d) Allocating additional resources

Answer: b

26. Which is a type of project termination?

o a) Termination by extinction

o b) Termination by addition

o c) Termination by integration

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 o d) All of the above
Answer: d

27. What is termination by extinction?

o a) Transferring project resources to another project

o b) Ending the project after achieving its goals

o c) Merging the project with another

o d) None of the above

Answer: b

28. What is termination by addition?

o a) Adding extra tasks to the project

o b) Incorporating the project into the parent organization

o c) Ending the project due to failure

o d) None of the above

Answer: b

29. What is termination by integration?

o a) Integrating project tasks with ongoing operations

o b) Extending the project timeline

o c) Delaying project completion

o d) Closing the project due to failure

Answer: a

30. What is termination by starvation?

o a) Ending the project by withdrawing resources

o b) Completing the project with limited budget

o c) Extending project deadlines indefinitely

o d) Terminating the project due to lack of stakeholder interest

Answer: a

31. What is the first step in the project termination process?

o a) Documenting deliverables

o b) Transferring resources

o c) Conducting a final review

o d) Informing stakeholders
Answer: d

32. Why is project documentation important during termination?

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 o a) To finalize the budget

o b) To ensure all deliverables are recorded and accounted for

o c) To identify future project risks

o d) To allocate team roles

Answer: b

Project Termination (Continued)

33. Which of the following is a critical step in project termination?

o a) Resource reallocation

o b) Closure of contracts

o c) Final project review and audit

o d) All of the above

Answer: d

34. What is the main purpose of the final project review?

o a) To identify the reasons for failure

o b) To evaluate project performance and learn lessons for future projects

o c) To allocate new budgets

o d) To reward team members

Answer: b

35. When is termination by starvation typically used?

o a) When the project has achieved its goals

o b) When funding is intentionally reduced or stopped

o c) When resources are merged into another project

o d) When the project is integrated into operations

Answer: b

36. What is a post-termination audit?

o a) A financial analysis of project costs

o b) An evaluation of project outcomes and processes after closure

o c) An external stakeholder meeting

o d) An assessment of market demand

Answer: b

37. What is the primary challenge in termination by integration?

o a) Ensuring seamless transition of project deliverables into routine operations

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 o b) Allocating new budgets for operations

o c) Reassigning team members to other projects

o d) Ending contracts with vendors

Answer: a

38. Which stakeholder group is typically informed first during project termination?

o a) External stakeholders

o b) Project team

o c) Project sponsors

o d) Vendors
Answer: c

39. What role does project documentation play during termination?

o a) Helps preserve records for audits and reviews

o b) Finalizes future project schedules

o c) Ensures timely resource allocation

o d) Reduces team workload

Answer: a

40. What is a key characteristic of termination by addition?

o a) It involves halting the project permanently

o b) It transitions the project into a permanent part of the organization

o c) It reallocates resources to a new project

o d) It focuses on closing vendor contracts

Answer: b

Integrated Topics

41. How are EVA metrics useful during project monitoring?

o a) They provide quantitative measures of project performance

o b) They help allocate resources

o c) They assist in project scope definition

o d) They eliminate risks

Answer: a

42. What does a CPI of 1.2 indicate about the project?

o a) The project is over budget

o b) The project is under budget

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 o c) The project is delayed

o d) The project is on track

Answer: b

43. What does an SPI of 0.8 indicate?

o a) The project is ahead of schedule

o b) The project is behind schedule

o c) The project is over budget

o d) The project is under budget

Answer: b

44. What is the primary purpose of milestones in project control?

o a) To manage resource constraints

o b) To provide checkpoints for progress assessment

o c) To allocate budgets

o d) To finalize deliverables
Answer: b

45. Which aspect of project management does PMIS primarily support?

o a) Decision-making and reporting

o b) Finalizing budgets

o c) Risk elimination

o d) Project integration
Answer: a

46. How can Gantt charts assist in project monitoring?

o a) By tracking tasks and timelines visually

o b) By calculating earned value metrics

o c) By eliminating scope creep

o d) By managing team conflicts

Answer: a

47. Why is Schedule Variance (SV) important in project control?

o a) It identifies budget overruns

o b) It measures the deviation from the planned schedule

o c) It forecasts project risks

o d) It assesses resource utilization

Answer: b

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48. Which activity typically follows resource reallocation during termination?

o a) Final project review

o b) Documentation of project outcomes

o c) Closure of contracts

o d) Stakeholder meeting
Answer: c

49. What is the ultimate goal of project monitoring and control?

o a) To ensure that project goals are achieved within scope, time, and budget

o b) To minimize stakeholder involvement

o c) To allocate maximum resources

o d) To identify team inefficiencies

Answer: a

50. How can EVA metrics like CPI and SPI support project termination?

o a) By evaluating the project’s overall performance

o b) By reallocating unused budgets

o c) By ensuring smooth transition to operations

o d) By finalizing team assignments

Answer: a

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