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PMP Practice Questions and Mock Exam 2

PMP Practice Questions And Mock Exam 2

This mock exam for PMP consists of twenty-eight questions. All the questions have exactly one correct answer. The exam is based on PMBOK 5th edition, and corresponds to the latest version of the exam.

Questions

  1. Which of these is not an example of a project?
    1. Mission to send a parrot to the moon.
    2. Cleaning the city center every day before office hours begin.
    3. Evacuation of city before a major storm expected this weekend.
    4. Building a stadium in the city of Rio De Janeiro.
    CORRECT: b. Cleaning the city centre is done every day. It is an operation and not a project. A project must be unique and time-limited.
  2. Claire is a Project Manager for building a new apartment complex. The planning of the project is complete and an Exit Gate meeting is scheduled. What is likely to happen in this meeting?
    1. Project's learning will be doucumented and the project will be closed.
    2. Claires performance will be critically analyzed by the management.
    3. The performance of the project team members will be reviewed by Claire.
    4. Projects deliverables will be reviewed and a decision will be made on projects continuation.
    CORRECT: d. During exit gate or kill point, projects deliverables are evaluated. A decision is made whether the project should be continued.
  3. Alice is joining a new project. Her manager informs Alice that requirements of the project will be defined using progressive elloboration. Which of the following option best describes progressive eloboration?
    1. The requirements of the project will be defined over a period of time in iterative fashion based upon feedback received.
    2. Requirements are unknown at this time and will be defined later.
    3. Requirements will be defined based upon discussions with the customer.
    4. Requirements will be defined based upon discussions with the subject matter expert.
    CORRECT: a.
  4. In which type of organization does the Project Manager has maximum authority?
    1. Balanced matrix.
    2. Strong Matrix.
    3. Functional.
    4. Projectized.
    CORRECT: d. In Projectized oganization a Project Manager has maximum authority.
  5. Chris has joined ABC organization as a Project Manager. The project team members do not report to Chris. They report to Engineering and Accounting departments. Which type of organization structure best represents ABC style of functioning?
    1. Balanced matrix.
    2. Strong Matrix.
    3. Functional.
    4. Projectized.
    CORRECT: c. In functional organization, project team members report to their respective departments.
  6. In which type of Matrix organization, does the PM have very little authority.
    1. Weak Matrix.
    2. Strong Matrix.
    3. Balanced Matrix.
    4. Functional Matrix.
    CORRECT: a. In weak matrix organizations, Project Manager carries less authority.
  7. During which stage of a project, the stakeholders influence is maximum?
    1. Early phases.
    2. During the middle of the project.
    3. Late stages.
    4. Stakeholders influence is same across all phases.
    CORRECT: a. During early phases of the project, stakeholders influence is maximum.
  8. Which of these is not a valid knowledge area as per PMI?
    1. Requirements Management.
    2. Integration Management.
    3. Risk Management.
    4. Procurement Management
    CORRECT: a. Requirements Management is not a valid Knowledge Area.
  9. Which of these is not a valid process group as per PMI?
    1. Initializing.
    2. Visualizing.
    3. Planning.
    4. Closing.
    CORRECT: b. Visualizing is not a valid process group as per PMI.
  10. The process of Identify Stakeholder is part of which process group?
    1. Stakeholder Management.
    2. Communication Management.
    3. Initiating.
    4. Planning.
    CORRECT: c. Identify Stakeholders is part of Initiating process group.
  11. Which process group has processes from all the ten knowledge areas?
    1. Initiating.
    2. Planning.
    3. Executing.
    4. Monitoring and Control.
    CORRECT: b. Planning process group has processes from all nine knowledge areas.
  12. Which of the following is not a process in Project Integration Management?
    1. Monitor and Control Schedule.
    2. Report Performance.
    3. Perform Integrated Change Control.
    4. Develop Project Charter.
    CORRECT: b. Report Performance is not a part of Project Integration Management
  13. Tom is a Project Manager helping his company on selection of a new project. Tom is using Payback period project selection method. Which one of the four projects should his company select?
    1. Project A requires an investment of one million dollars. After six months of investment, project will generate profits of $50K per month.
    2. Project B requires an investment of $100K dollars. It will yield returns of $5K per year.
    3. Project C requires an investment of one million dollars. It will yield returns of $40K per month.
    4. Project D requires an investment of $500K dollars. It will yield returns of $50K per month.
    CORRECT: d. Project D has minimum payback period of ten months.
  14. Mary is a Project Manager helping her company on selection of a new project. Mary is using Benefit Cost ratio project selection method. Which one of the four projects should her company select?
    1. Project A has a construction cost of $1 million and a projected sale price of $1.2 million.
    2. Project B has a construction cost of $2 million and a projected sale price of $2.5 million.
    3. Project C has a construction cost of $5 million and a projected sale price of $6 million.
    4. Project D has a construction cost of $10 million and a projected sale price of $11.5 million.
    CORRECT: b. Project B has benefit cost ratio of 1.25. This is the highest among the four projects.
  15. Tim is a Project Manager helping his company on selection of a new project. Tim is using Net Present Value project selection method. Which one of the four projects should his company select?
    1. Project A has a net present value of $300K.
    2. Project B has a net present value of $400K.
    3. Project C has a net present value of $500K.
    4. Project D has a net present value of $600K.
    CORRECT: d. A Project with the highest net present value must be selected during project selection.
  16. Chen is a Project Manager helping his company on selection of a new project. Tim is using Opportunity Cost project selection method. Which one of the four projects should his company select?
    1. Project A has a opportunity cost of $300K.
    2. Project B has a opportunity cost of $400K.
    3. Project C has a opportunity cost of $500K.
    4. Project D has a opportunity cost of $600K.
    CORRECT: a. A project with the smallest opportunity cost should be selected.
  17. Kumar is a Project Manager helping his company on selection of a new project. Kumar is using Payback period project selection method. Which one of the four projects should his company select?
    1. Project A has a Payback period of three years.
    2. Project B has a Payback period of four years.
    3. Project C has a Payback period of five years.
    4. Project D has a Payback period of twentyfour months.
    CORRECT: d. Project d has the minimum payback period. The project manager should select the project with the least payback period.
  18. Jim is a Project Manager helping his company on selection of a new project. Jim is using Internal rate of return project selection method. Which one of the four projects should his company select?
    1. Project A has an internal rate of return of 5%.
    2. Project B has an internal rate of return of 6%.
    3. Project C has an internal rate of return of 7%.
    4. Project D has an internal rate of return of 8%.
    CORRECT: d. The Project Manager should choose a project with highest internal rate of return.
  19. Samantha is a Project Manager of a Software product. The project required an initial investment of $100,000. The project generated a revenue of $20,000 in the first year. There were operational cost of $5000 and tax liability of another $5000. What is the return on invested capital?
    1. 5%
    2. 10%
    3. 20%
    4. 0%
    CORRECT: b. After tax profits of the project are $10000. Return on invested capital = $10000 divided by $100000.
  20. Which of the following is true about the project charter?
    1. The project charter is signed by the Project Manager.
    2. The project charter is generated as an output of Develop Project Management plan process.
    3. The project charter includes the detailed schedule of the project.
    4. Project charter includes a high level view of project requirements, budget and milestones.
    CORRECT: d. The project charter is signed by Senior Management/Project Sponsor. Hence option a is incorrect. Project charter is the primary output of Develop Project Charter process. Hence option b is incorrect. Project charter includes a high level schedule,
  21. Which of the following is tru about the Project Management Plan?
    1. Project Management Plan identifies and authorizes the Project Manager.
    2. Project Management Plan is a detailed project schedule defining tasks, their dependencies as well as primary milestones of the project.
    3. Project Management Plan is a formal document that defines how the project is to be managed.
    4. Project Management Plan is prepared as part of the Direct and Manage Project Work process.
    CORRECT: c. The project charter identifies the Project Manager. Hence a is incorrect. PMP is prepared as part of Develop Project Management Plan process.
  22. George is the Project Manager of a project responsible for manufacturing shirts for a large order. During which process the shirts will get manufactured?
    1. Develop Project Management Plan
    2. Direct and Manage Project Work
    3. Monitor and Control Project Work
    4. Create WBS
    CORRECT: b. During the Direct and Manage Project Work process the PMP gets executed. The deliverables get generated during this process.
  23. Perform Integrated Change Control process is part of which process group?
    1. Initiating.
    2. Planning.
    3. Executing.
    4. Monitoring and Control.
    CORRECT: d. Perform Integrated Change Control is part of Monitoring and Control process.
  24. Greg is a Project Manager of a construction project. The customer has requested that an additional room needs to be constructed at an extra cost? How should Greg respond to this request
    1. Document the request and present it to Change Control Board.
    2. Refuse the request as this was not part of the original scope.
    3. Accept the request as the customer is willing to pay for it.
    4. Consult the project sponsor.
    CORRECT: a. The Change Control Board should review and evaluate the change request in this case.
  25. Michael is the Project Manager of a software project being developed for a large customer. A senior management executive of Michaels organization suggests Michael that adding a new feature will be a good addition to his project. What is the best course of action for Michael?
    1. Document the request and present it to change control board.
    2. Refuse the request as this was not part of the original scope.
    3. Accept the request as it is being suggested by a senior member of the organization.
    4. Consult the project sponsor.
    CORRECT: b. Gold plating is the process of providing functionality not in scope. PMI does not recommend gold plating.
  26. Doug is a Project Manager for a project to build a bridge. During his review of the progress, Doug finds out that the project is likely to be completed in six months before schedule. Which is the most suitable thing for Doug to do next?
    1. Organize a party for the project team to ensure employee motivation remains high.
    2. Raise a change request to reduce staff.
    3. Doug does not need to do anything.
    4. Doug needs to use the additional six months to make sure the bridge exceeds thq quality goals.
    CORRECT: b. If the project is running ahead of the schedule, Project Manager should evaluate reducing staff for the project. This could lead to savings for organization.
  27. Which of these is not done during the Close Project process?
    1. Creation of deliverables of the project.
    2. The handing over of deliverables to the receiving party.
    3. Documenting the project learnings.
    4. Release of project resources.
    CORRECT: a. Creation of deliverables is output of the Direct and Manage Project work process.
  28. Mary is taking over an ongoiung project as a Project Manager. The earlier project manager is no more with the organization. Mary wants to understand why the project should be executed, the high level project requirements and budget of the project. Which document should Mary refer to?
    1. Project Management Plan.
    2. Project Statement of work.
    3. Business case.
    4. Project charter.
    CORRECT: d. The project charter explains the purpose of the project, high level requirements and high level budget.
You have answered  of 28 questions correctly.

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