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Test Bank For Project Management in Practice, 7th Edition Meredith Chapter 1-8 A+
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Test Bank ForProject 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
Copyright ©2017 John Wiley & Sons, Inc.
,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.
Copyright ©2017 John Wiley & Sons, Inc.
, 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.
Copyright ©2017 John Wiley & Sons, Inc.
, Answer: True
Response: See section 1.6
Level: medium
16. The main distinction between platform and derivative projects is that the latter
depend on existing technology.
Answer: False
Response: See section 1.6
Level: medium
17. One reason for the emphasis on project management is that tasks fit neatly into
business-as-usual.
Answer: False
Response: See section 1.1
Level: easy
18. Programs are subdivisions of projects.
Answer: False
Response: See section 1.1
Level: easy
19. Projects are subdivisions of programs.
Answer: True
Response: See section 1.1
Level: easy
20. A similarity between project management and general management is the
tendency to ―manage by exception.‖
Copyright ©2017 John Wiley & Sons, Inc.
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