PMP Questions 181 - 200

181. The project team has put together a project plan for a project, and the plan has been approved by the stakeholders. The customer asks the project manager if the project can be delivered seven weeks sooner. The customer offers sufficient monetary incentive for the project manager. The project manager decides to fast track the project. This decision
will:
a. Increase risk
b. Decrease risk
c. Not affect risk
d. Risk change cannot be determined

182. A project team evaluates risk in the project. As an outcome there are some positive and negative risks that are identified and evaluated. To evaluate the worst case for the project the project team should evaluate and summarize:
a. All of the risks affecting the project
b. Only the negative risks
c. The negative risks minus the positive risks
d. The positive risks minus the negative risks

183. The Project Management Institute decided to hold its annual meeting in New Orleans, Louisiana. The conference represents a substantial amount of PMI’s operating budget for the year. PMI identified a risk of hurricanes during the month of September, when the
conference was to be held. PMI decided to purchase convention insurance to offset the loss of convention revenue if a hurricane caused cancellation of the conference. This is a risk management strategy called:
a. Avoidance
b. Deflection or transference
c. Acceptance
d. Mitigation

184. During the project lifecycle, in which part of the lifecycle will risk be the lowest?
a. Initiation
b. Planning
c. Execution
d. Closeout

185. The Monte Carlo technique can be used to:
a. Determine the amount of contingency budget needed for the project
b. Determine the amount of the management reserve
c. Determine the critically index for an activity in the schedule
d. Determine the risk index for a risk in the project

186. A project manager must make a narrative description of the project. This narrative description covers the items that will be supplied under the contract with the client. It is called:
a. The project plan
b. The statement of work
c. The exception report
d. The progress report

187. A project manager discovers that there is a part of the project that contains some risk. His or her strategy with this risk is to subcontract the work to an outside supplier by using a firm fixed-price contract. Which of the following is true?
a. The supplier will include an allowance for the risk in the contracted price
b. The supplier will lose money on the contract
c. The project manager will have to compensate the supplier if the risk occurs
d. The project manager will assist the supplier with the project team if the risk occurs

188. A project manager discovers that there is a part of the project that contains some risk. His or her strategy with this risk is to subcontract the work to an outside supplier by using a firm fixed-price contract. The project manager should:
a. Make certain that the project team does not reveal the risk to the supplier until the contract is signed
b. Make every effort to make sure that the supplier is made aware of the risk after the contract is signed
c. Make sure that the supplier understands the risk before the contract is signed
d. Assign a member of the project team to monitor the activity of the supplier to make sure that the supplier deals with the risk properly is it occurs

189. The project manager is considering contracting some of the work of the project to a service bureau. The service bureau has been used in the past by this project manager. The manager has several choices of contracts that can be used to subcontract this work. Which of the following is not a type of contract that the project manager might choose?
a. Firm fixed price
b. Make or buy
c. Cost plus incentive fee
d. Unit price

190. A project manager is employed by a construction company and is responsible for the furnishing of the completed building. One of the first things that the project manager for this project should do is to write a:
a. Work breakdown structure
b. Budget baseline
c. Project charter
d. Project plan

191. A contractor is working on a fixed price contract that calls for a single, lump sum payment upon satisfactory completion of the contract. About halfway through the contract, the contractor’s project manager informs the contract administrator that financial problems are making it difficult for the contractor to pay employees and subcontractors. The contractor asks for partial payment for work accomplished. Which of
the following actions by the buyer is most likely to cause problems for the projects?
a. Starting to make partial payments to the contractor
b. Making no payments to the contractor
c. Paying for work accomplished to date
d. Negotiating a change to the contract

192. Under a blanket order arrangement, which of the following is correct?
a. The cost of carrying the inventory is borne by the buyer
b. The seller delivers all of the material ordered at one time
c. Payments for all of the material are made at one time
d. At the end of the blanket order, prices are adjusted for the actual amount of material delivered

193. Forward buying will:
a. Decrease storage cost
b. Decrease capital investment
c. Decrease transportation costs
d. Decrease inventory

194. Which of the following would not be a part of the procurement management process?
a. Purchasing
b. Contract negotiations
c. Inspection
d. Marketing

195. The equivalent of cost-reimbursable contracts is frequently termed:
a. Back-charge contracts
b. Fixed-price contracts
c. Progress payment contracts
d. Cost-plus contracts

196. The project team has delivered a deliverable to the customer. The deliverable contains defects that are easily correctable. There is a good relationship with the customer and the customer agrees to make the repairs and correct the defects on the item and invoice supplier for the work that was done. This is considered to be a:
a. Bid cost reduction
b. Payment authorization
c. Back charge
d. Release payment

197. A project manager decides to go out for bids on some of the project work that must be done as part of the contract to do a project for another customer. The bids are received and evaluated, and the seller with the lowest bid is selected. The cost of the contract to the project can further be reduced by what action?
a. Illegal methods
b. Procurement leverage
c. Selecting another seller
d. Contract negotiation

198. A buyer extends a formal invitation that contains a scope of work  that seeks a response that will describe the methodology and results that will be provided to the buyer. This is called:
a. Invitation to bid
b. Request for information
c. Request for proposal
d. Request for bid

199. A project manager wants to subcontract part of the project. This part of the project is quite complicated, and there are many ways that the work can be done. What method of request for seller responses should be used by the project team?
a. Request for bid
b. Request for quotation
c. Request for proposal
d. Request for information

200. The project team is considering whether to purchase a service or do it themselves. One of the items that should not be considered in their analysis is:
a. The seller’s price
b. The cost and availability of floor space at the team’s facility
c. The seller’s technical staff
d. A competitor’s method of outsourcing

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Answers: 

181. A
Increase risk

182. B
Only the negative risks

183. B
Deflection

184. D
Closeout

185. C
Determine the critically index for an activity in the schedule

186. B
The statement of work

187. A
The supplier will include an allowance for the risk in the contracted price

188. C
Make sure that the supplier understands the risk before the contract is signed

189. B
Make or buy

190. C
Project charter

191. D
Negotiating a change to the contract

192. D
At the end of the blanket order, prices are adjusted for the actual amount of material delivered

193. C
Decrease transportation costs

194.D
Marketing

195. D
Cost-plus contracts

196. C
Back charge

197. D
Contract negotiation

198.C 

Request for proposal

199.C
Request for proposal

200.D
A competitor’s method of outsourcing