MPM-001 - Project Fundamentals And Appraisal

1. The maximum value addition can be made in the initial phase of the project life cycle. The type of resources one should deploy in the early phase of the project life cycle should be __________
A Best suited for the kind of job in hand
B Ordinary as we need best resources in the execution phase
C It does not matter
D Can not say

2. Is it advisable to hire the best expertise in the beginning of a project rather than after finalizing the project plan?
A Yes, it is advisable to hire the best possible experts in the beginning of a project as the value addition is maximum in the beginning at the planning stage
B Yes, it is advisable to hire the best possible experts in the beginning of a project as we can negotiate their wages or their consulting role better
C No, it is not advisable to hire the best possible experts in the beginning of a project, as their contribution will be minimum as work has not yet begun
D No, experts are costly to hire and they should only be utilized in an emergency

3. Cost of making change is the highest in what phase of the project life cycle?
A Initiation
B Planning
C Execution
D Close out

4. Change is constant so we should not unnecessarily worry too much on account of cost of making changes. Analyze this statement and choose the best possible option
A Yes, change is taking place all around us. We should keep a hefty amount of reserve for the changes that may be needed in the project
B Yes, change is taking place all around us. We should not worry but be open to changes, as that will make us more flexible
C No, it is a generic statement that changes are constant. We should always plan things in the best possible way by collecting relevant information to minimize changes
D No, we should not allow any scope change, as it is the best way to destroy the project. Unless we are 100% sure of the project costs we should not begin execution of the project

5. The amount of stake keeps on increasing based on additional deployment of __________ and ________
A Resources, capital
B Capital, managers
C Management intervention, resources
D Team members, customer

6. The amount of stake is minimum in which phase of the project life cycle?
A Close Out
B Execution
C Initiation
D Planning



7. Stakeholders are all those ________ who have a direct or indirect interest in the project
A Persons/groups/organizations
B Government organizations
C Senior management personnel of a company
D Members of the project team

8. Which statement is not true about stakeholder analysis:
A Expectations of different stakeholders from project will vary
B A stakeholder analysis could antagonize negative stakeholders
C A stakeholder analysis helps to reduce negative influences
D Stakeholder analysis should be done to identify key stakeholder requirements

9. Need life cycle forms the basis for project feasibility:
A No, feasibility is the basis
B Yes
C Can not say
D No, planning is the basis

10. Need life cycle comprises of the following three phases:
A Emergence, articulation and recognition
B Emergence, articulation and feasibility
C Articulation, viability and emergence
D Recognition, articulation and appointing project manager