MPM-001 - Project Fundamentals And Appraisal (Set 4)

1.  Projects can be classified by:

 A  The industry they fall in

 B  The total cost of the project

 C  The size of the project

 D  All of the above

 

2.  Some key characteristics of a project are:

 A  Temporary, unique, have fixed goals and can use unlimited resources

 B  Temporary, unique, have pre-defined goals and follow phases

 C  Temporary, unique, have fixed goals and face limited risks

 D  Temporary, unique, face risks and have unlimited budgets

 

3.  A project faces risks because:

 A  There are some known problems that could come up

 B  An unknown problem can jeopardize the project

 C  There are many uncertainties

 D  All of the above

 

4.  The objectives of projects and operations:

 A  May be same

 B  Depends on the project involved

 C  Are totally different

 D  Depends on the organization

 

5.  Operations is used for:

 A  The handing over of the project

 B  Repetitive work

 C  A concerted one time effort

 D  None of the above

 

 

6.  Both operations and projects should be _____________ .

 A  Well executed to succeed

 B  Planned, executed and controlled

 C  Fully controlled to achieve success

 D  Extremely well planned to achieve success

 

7.  What is not a feature of the business case?

 A  It is developed from the need statement

 B  It describes the 'why' of the project and the preferred solution

 C  It doesn't contain details of the investment appraisal

 D  It forms the basis for authorizing the project

 

8.  What is not a role of the project sponsor?

 A  Guiding the project at a strategic level according to the organizational needs

 B  Managing the project

 C  Accept the project at its completion

 D  Authorizing the project to proceed to the next phase

 

9.  Double declining balance is a form of:

 A  Decelerated depreciation

 B  Straight line depreciation

 C  Accelerated depreciation

 D  Life cycle costing

 

10.  You are appraising three projects. The NPV of Project A is $10000, NPV of Project B is -$10000 and the NPV of Project C is $12000. Which project would you select?

 A  Project A

 B  Project C

 C  Project B

 D  Not enough information is given