20 PMP Business Environment Domain Questions Answer and Explanation

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Question 1 - ID: 922960

A portfolio manager is leading a project portfolio planning exercise to determine which projects will move forward in the new quarter that support the strategic goals of the portfolio. She decides to use a scoring model to rate projects against the following three criteria: profit potential, ease of use, marketability. Based on the table provided, which project will likely move forward?

Select one
 
A.
B.
C.
Answer and explanation:

Project A has the highest score based on the values provided. To calculate the score for
each project, multiply the score of each criterion against the weight of the criteria and then
add up all of the scores. See the following table for the calculations:

Question 2 - ID: 122969
All of the following are true regarding projects except for which one?
Select one
 
A.
B.
C.
D.
Answer and explanation:
Projects are temporary endeavors undertaken to produce a unique product, service, or result. Operations, on the other hand, are ongoing and repetitive and do not have an ending date.
Question 3 - ID: 432957
Which of the following represent components of a benefits management plan?
Select three
 
A.
B.
C.
D.
Answer and explanation:
A benefits management plan describes how and when the benefits of a project will be delivered. It also describes what mechanisms should be in place to measure those benefits. Examples of key elements that make up a benefits management plan include target benefits, strategic alignment, timeframe for realizing benefits, benefits owner, metrics, assumptions, and risks. Business need is captured within a business case.
Question 4 - ID: 552946
What brings together a set of tools and techniques to describe, organize, and monitor the work of project activities?
Select one
 
A.
B.
C.
D.
Answer and explanation:
Project management is defined as the application of knowledge, skills, tools, and techniques to project activities to meet the project requirements.
Question 5 - ID: 393035
You are a project manager and are meeting with your team. The goal of this meeting is to determine which processes you should use to effectively manage the project. Which of the following describes what you’re doing?
Select one
 
A.
B.
C.
D.
Answer and explanation:
Tailoring involves determining which project management processes to use when managing and conducting the project.
Question 6 - ID: 773022
Quincy and Michael are two executives of Widgets for Life, a company providing the latest cool lifestyle gadgets. They’ve learned that a new federal law will be passed that regulates how personal data may be collected and used. Many of Widgets for Life’s gadgets collect data, which has been made possible by advancements in technology. As a result, they decide to launch a new project that will address the requirements of the new law. This project came about as a result of what need?
Select one
 
A.
B.
C.
D.
Answer and explanation:
The project is being driven by legal requirements. New projects can occur as a result of laws passed, as in the case seen in this scenario.
Question 7 - ID: 843006
What group is responsible for reviewing all change requests and approving or denying them?
Select one
 
A.
B.
C.
D.
Answer and explanation:
The change control board (CCB) is responsible for reviewing all change requests and approving them or denying them. It is sometimes also known as a technical assessment board, technical review board, or engineering review board.
Question 8 - ID: 412971
Reasons to Lyv is the top client of a large marketing firm. Trudy is the president of Reasons to Lyv and has decided to launch a product that leverages new GPS tracking technology. She has high confidence that the project will be a success and asks the marketing firm to make it their top priority by generating a unique campaign that will run in parallel with her project. Billy, a top executive from the marketing company, briefs his team about this unique situation that they have not managed before, and a project is launched shortly thereafter. Trudy’s project came about as a result of what?
Select one
 
A.
B.
C.
D.
Answer and explanation:
Because Reasons to Lyv is attempting to exploit new GPS technology that is available, the project is a result of technological advance.
Question 9 - ID: 403042
Which of the following is a valid tool or technique that aids the project manager, or other assigned organizational resource, in developing the project charter?
Select one
 
A.
B.
C.
D.
Answer and explanation:
Brainstorming is a form of data gathering, a technique of the Develop Project Charter process. Other examples of data gathering include focus groups and interviews.
Question 10 - ID: 962953
Quincy and Michael are two executives of Widgets for Life, a company providing the latest cool lifestyle gadgets. As part of their annual planning process, they sit down to evaluate three projects linked to their department objectives. They decide to use benefit measurement methods to help them choose which project to select. Which of the following analysis tools are they likely to use?
Select one
 
A.
B.
C.
D.
Answer and explanation:
Linear, multi-objective programming, and nonlinear are all examples of constrained optimization methods, not benefit measurement methods. Benefit measurement methods include benefit-cost ratio analysis, scoring models, and benefit contribution methods.
Question 11 - ID: 132954
Project selection methods might include all of the following except for which one?
Select one
 
A.
B.
C.
D.
Answer and explanation:
Project selection methods include benefit measurement methods and mathematical models (also known as constrained optimization methods). Benefit measurement methods might include cost-benefit analysis and cash flow analysis.
Question 12 - ID: 732996
Yasmin is a senior project manager for a project that aims to produce a new line of medical widgets for a Fortune 100 company. The entire industry has been buzzing with excitement over this project, which was estimated to span three years and require an investment of $1.5 billion from the company. Yasmin recently learned that her project would be placed on hold for the foreseeable future after a lawsuit against the company resulted in shareholders pulling out their investments, thereby liquidating capital needed to continue with the project. What type of project ending is this?
Select one
 
A.
B.
C.
D.
Answer and explanation:
When resources are cut off from the project and the project is starved prior to completing all requirements, it often leads to an unfinished project. Resources in this case can be money (such as in Yasmin’s case), human resources, equipment, or supplies. This type of project ending is referred to as starvation.
Question 13 - ID: 623014
You’ve recently begun to suspect your friend, a fellow PMP credential holder, might be accepting gifts from hardware vendors who are bidding on an upcoming multimillion-dollar project that she’s going to manage. She has a new LED flat-screen computer monitor at her desk, she showed off her new electronic tablet at a meeting two days ago, and today she unpacked a new ultra-thin laptop while you were in her office. Which of the following should you do?
Select one
 
A.
B.
C.
D.
Answer and explanation:
The best answer in this situation is to get the facts before taking any action. A violation based only on suspicion should not be reported. You can get the facts by telling your friend you’re concerned about the appearance of impropriety and ask her whether the vendor gave her these items. It could be that these are the first of several samples that will be coming from all the vendors bidding on the project so the equipment can be evaluated in light of the project objectives. Or she could have accepted them as gifts, which is not appropriate. Never jump to conclusions. Always ask and get the facts straight before reporting a conflict-of-interest situation.
Question 14 - ID: 963002
Sue is the head of an enterprise PMO. She delivers a presentation at the annual company meeting to describe her roles, responsibilities, and the value of the PMO. As part of her presentation, she outlines the general responsibilities of a PMO. All of the following describe the types of support that PMOs typically provide except for which one?
Select one
 
A.
B.
C.
D.
Answer and explanation:
While PMOs may facilitate the selection of projects that support a company’s strategic objectives, they are not typically responsible for establishing the objectives and selecting projects. All other options describe the types of support that a PMO typically offers within an organization.
Question 15 - ID: 513005
All of the following describe a functional organizational structure except for which one?
Select one
 
A.
B.
C.
D.
Answer and explanation:
In a functional organization, the role of project manager typically does not exist. Instead, it may be a part-time role or a similar role such as a project coordinator.
Question 16 - ID: 112979
All of the following are true regarding honesty as a value project managers should uphold, except for which one?
Select one
 
A.
B.
C.
D.
Answer and explanation:
Honesty involves not only information regarding your own background and experience but information regarding the project circumstances as well.
Question 17 - ID: 822995
What is the ethical code you’ll be required to adhere to as a PMP credential holder?
Select one
 
A.
B.
C.
D.
Answer and explanation:
The Code of Ethics and Professional Conduct is published by PMI, and all PMP credential holders are expected to adhere to its standards.
Question 18 - ID: 483024
One of your team members, a fellow PMP credential holder, is under investigation for violation of the Code of Ethics and Professional Conduct. What action should you take?
Select one
 
A.
B.
C.
D.
Answer and explanation:
Part of the Code of Ethics and Professional Conduct requires that you cooperate in any investigation concerning ethics violations and in collecting information related to the violation.
Question 19 - ID: 332963
A functional manager hosted a celebration for the project team to reward them for a job well done that led to the successful completion of a major project. It was clear to the project manager that the team was relaxed and enjoying themselves, with some talking about upcoming vacation plans. What type of organizational structure does the project team likely work within?
Select one
 
A.
B.
C.
D.
Answer and explanation:
Teams working in a weak matrix organization tend to experience the least amount of stress during the Closing processes. This is because, in a weak matrix organization, the functional manager assigns all tasks (project-related tasks as well) so the team members have a job to return to once the project is completed and there’s no change in reporting structure.
Question 20 - ID: 362975
Which of the following best defines a program?
Select one
 
A.
B.
C.
D.
Answer and explanation:
A program is defined as related projects, subsidiary programs, and program activities managed in a coordinated manner to obtain benefits not available when managing them individually. The other options provide the definition of a project, progressive elaboration, and product life cycle.

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