PART 1: MULTIPLE CHOICES (6 points)

1. Staffing fluctuations associated with project completion and initiation are most likely
to occur in organizations that are:
○ A) Functionally structured.
○ B) Project structured.
○ C) Matrix structured.
○ D) Process structured.
2. The firm set aside a little extra money just in case an unforeseen element of cost
pushed the project beyond what they had budgeted. This extra money is called:
○ A) a rainy day fund.
○ B) a contingency reserve.
○ C) an escalation clause.
○ D) a sinking fund.
3. Which of the following types of activities is more closely associated with projects
rather than processes?
○ A) An activity that is ongoing
○ B) An activity that is day-to-day
○ C) An activity that uses existing systems
○ D) An activity that establishes its own work rules
4. The first step in assembling a project team is to:
○ A) Talk to potential team members.
○ B) Identify the required skills.
○ C) Negotiate with the functional supervisor.
○ D) Notify top management.
5. A key determinant of project success is a:
○ A) rapidly assembled team.
○ B) slowly assembled team.
○ C) project leader voted on by the team.
○ D) clear project mission.
6. If a model can be applied successfully by people in all areas and levels of an
organization, it is said to possess the trait of:
○ A) Capability.
○ B) Ease of use.
○ C) Flexibility.
○ D) Realism.
7. The management department at the university decides to add a new program in
restaurant, hotel, and institutional management. As part of the development process
they hold focus groups consisting of area business leaders, current and former
students, and restaurant and hotel owners. These groups can be described as:
○ A) Project leaders.
○ B) Project workers.
○ C) Stakeholders.
○ D) Clients.
8. A major player in the software industry stumbles from one new edition of its
operating system and office automation package to another. As soon as one package is
released, the programmers and developers have two weeks to latch onto a different
team that is updating a different package. Failure to find another team to work for
 means an end to their employment. This organizational structure is BEST classified as
a:
○ A) Functional organization.
○ B) Matrix organization.
○ C) Project organization.
○ D) Flexible organization.
9. Based on the activity network pictured, what is the best statement?

○ A) Before starting Activity C, Activity A, and Activity B must be completed.

○ B) Before starting Activity D, Activity A, and Activity B need to be
completed.
○ C) Before starting Activity E, Activity A, and Activity B need to be
completed.
○ D) Before starting Activity C, Activity A, and Activity D must be completed.
10. What are work breakdown structure elements that must be completed to conclude the
project deliverables?
○ A) Activities
○ B) Tasks
○ C) Work packages
○ D) Milestones
11. The greatest project risk occurs when:
○ A) The probability of the event is high and the consequences of the event are
high.
○ B) The probability of the event is high and the consequences of the event are
low.
○ C) The probability of the event is low and the consequences of the event are
high.
○ D) The probability of the event is low and the consequences of the event are
low.
12. A project's duration can be reduced by:
○ A) shortening the duration of critical path tasks.
○ B) adding tasks to the critical path.
○ C) adding shorter routes around the critical path.
○ D) completing the backward pass first.
13. In earned value management, schedule variance is defined as:
○ A) The difference between the earned value and the actual cost.
 ○ B) The difference between the earned value and the planned value.
○ C) The difference between the actual cost and the planned value.
○ D) The difference between the cost and schedule performance indices
multiplied by the budgeted cost at completion.
14. Which of these is NOT characteristic of a project?
○ A) Projects are responsible for the newest and most improved products,
services, and organizational processes.
○ B) Projects are ad hoc endeavors with a clear life cycle.
○ C) Projects provide a philosophy and strategy for the management of change.
○ D) Traditional process management functions of planning, organizing, and
controlling do not apply to project management.
15. A project that must be finished by December 31st is:
○ A) Time-constrained.
○ B) Resource-constrained.
○ C) Mix-constrained.
○ D) Capacity-constrained.
16. Use the data to calculate the earned value for the project. All amounts are in
thousands of dollars.

Duration (weeks) % Comp

5 10 15 20 25

Conceptual Design 10 6 100%

Graphics Design 12 6 4 100%

Copyright 4 5 6 25%

Samples 4 2 30%
Tooling 6 9 4 10%

Production 2 6 14 5%

Total 10 18 22 26 24

Cumulative 10 28 50 76 100

A) $38,500
B) $46,550
C) $56,750
D) $61,125
17. Which of these project closeout management steps requires objectivity, internal
consistency, fairness, and replicability?

● A) Disband the team

● B) Finish the work
● C) Gain acceptance for the product
● D) Review how it all went

18. Three workers complete a full 8-hour day finishing concrete for a terrace. All three
workers are paid $12 an hour and the job bills to the customer for $450. What are the total
direct labor costs?

● A) $450
● B) $12
● C) $288
● D) $96

19. Use this resource load chart to determine which activity uses the fewest resources
 ● A) Activity A
● B) Activity B
● C) Activity C
● D) Activity D

20. Project risk is highest during the:

● A) Finish phase of the project life cycle.

● B) Initialization phase of the project life cycle.
● C) Execute phase of the project life cycle.
● D) Develop phase of the project life cycle.

PART 2: (4 points)
1. Information of Beta project is provided below: a. Draw a project network, complete the
forward and backward pass, compute activity float time, and identify the critical path. (2.5
points)

Task Predecessor Duration (days)

A -- 10

B A 18

C A 15

D B, E 17

E C 10

F E 8

G D 11

H G 15
 I G 7

J F 3

K H, I, J 15

b. Anna was assigned to work full-time for task B, and Vova was assigned to work full-time
for task C. Suddenly, Anna quit her job and left the company. No one in the company can
replace her except Vova. The budget is tight, and the Project Manager (PM) finds it tough to
persuade the Board of Management to outsource this task or hire an outside person. If you are
the PM of this project, how would you respond? Does it change the project schedule? Explain
it. (0.5 point)
2. You are a project manager at an engineering consultancy. Your team is delivering a critical
infrastructure upgrade for a government client. The project is halfway complete and
progressing well, but last week your senior engineer discovered a design flaw that could
cause safety issues if not corrected. Fixing this flaw will delay the project by at least two
months and add significant costs. When you report this to your department director, he insists
you do not disclose the flaw to the client immediately. He argues that once the project is
closer to completion, your team can quietly implement a workaround that should meet
minimum safety standards without triggering a costly redesign. He pressures you to keep this
information within the team to avoid losing the client's trust and incurring penalties for delay.
You are concerned about the safety risks and the ethical implications of hiding this
information from the client. As the project manager, what actions would you take in this
situation? Explain your decision and the reasoning behind it. (1 point)