PMP (Business Environment) Questions

Undertaking a project requires a business case to justify whether the project is worth the investment. Which is the best example of a business case?

While creating the project charter, you review the business case and learn that, unlike previous projects, this project will source non-sustainable wood for the product, which substantially reduces project cost. Your company has had some financial difficulties lately, but you know it has high environmental standards and always marketed and prided itself on producing goods that are 'green'.  What is your best course of action?

On your construction project, you are eight weeks away from achieving a milestone for which your client will award you a $10,000 bonus. However, the workers union of your supplier has announced a strike. If your supplier cannot settle the dispute within three weeks, the supply interruption could delay your project. There is a 20% chance the strike exceeds three weeks, and you predict the delay will cost $50,000 What is the expected monetary value (EMV) of this risk?

A project manager has been assigned to a project just after the project charter was signed. The project manager conducted a benefits analysis with stakeholders which confirmed that the project was in alignment with the organizational strategy and expected business value. The project is now complete, and everybody agrees it was successful in meeting objectives for scope, schedule, and budget.  However, the project was a failure from a business point of view. What most likely happened?

A construction project has experienced weather-related delays as well as performance issues with several key vendors, and the risk responses have been implemented with varying degrees of success. A senior executive has asked the project manager for an update on the current overall project risk exposure. What should the project manager do?

An organization is considering rolling out a new technology that could enhance employee productivity and excitement. Some have warned that the new technology could be out-of-date soon after roll out and there would be substantial costs in material and end-user training. Management is unsure whether to green light this project. What is the best course of action for the organization to take before making a decision?

In light of rising fuel costs, a car manufacturer is responding to market demand by initiating a project to increase the fuel efficiency of their cars. The company executives aim to improve the market share and profitability of the company.  In this scenario, which of the following is not one of the four fundamental categories of factors that led to the initiation of the project?

You are leading a project to renovate a faulty waste treatment facility, which will use the same waste disposal techniques as those currently in place. However, legislation for more stringent waste disposal techniques will likely be voted on in the near future. How should you handle the legislation during the development of the project charter?

Execution has begun for a project to establish retail distribution in a new area of the country. However, the performing organization has just announced the acquisition of a competitor that has a well-established retail distribution network in the target area rendering the project objectives obsolete. What is the best course of action for the performing organization?

As part of project initiation, the project manager reviews the business case, creates the stakeholder register, and helps the sponsor with the development of the project charter. What else should the project manager do before moving on to project planning?

The project manager is concerned that the new system planned to be delivered by the project may not be adopted by the end users in the department due to their anti-change culture and resistance to new initiatives as seen in the past. What is the best course of action for the project manager?

You are leading a project for a restaurant chain to reduce the average time a customer spends in the drive-through lanes. As part of the development of the project charter, you compare your company's drive-through processes to three competitors with the fastest drive-through lanes. What technique are you using in this scenario?

A project requires the use of various contractors to complete the project deliverables, and you have scheduled a bidder conference as part of the procurement process. Which of the following values is best represented by holding a bidder conference?

You are in the process of monitoring the overall progress of project work. Throughout your project, you have experienced recurring issues, and you want your current and future projects to run more smoothly. Which of the following is least likely to proactively promote continuous improvement?

You are developing the project management plan for a project to develop an interactive computer-based visualization that will demonstrate the efficacy of a new drug versus a competitor's drug and placebo. A completed visualization must be available for a convention that is scheduled in six months, after which time the visualization will no longer provide any value. What might you do to ensure the project delivers the intended benefits?