Final Review Guide (Part 1)

Which of the following is the first step in developing a work breakdown structure (WBS) for a project: A. Ensure that work tasks are being completed in the proper order. B. Divide the workload into independent work packages. C. Evaluate the quality of completed activities in relation to the project goals. D. Determine how long it will take to complete each work task.

. B Divide the workload into independent work packages. A work breakdown structure (WBS) is the process of dividing project tasks into meaningful components to complete the project. The related activities in each component make up the work package. Work packages help the project manager effectively schedule, assign, and monitor project activities. After dividing the entire workload into independent work packages, the project manager can determine timeframes, monitor the work, and evaluate the quality of the work after the activities have been performed.

Which of the following is an activity performed during the close-out phase of a project: A. Documenting results B. Sequencing tasks C. Selecting resources D. Setting goals

A Documenting results. An important part of closing a project is documenting the project's results. This involves advising the stakeholders of the project's outcomes, which is often provided in a formal report. Setting goals, selecting resources, and assigning tasks in a logical sequence are activities that take place when initiating a project.

Delegation of authority is A. a negative way of managing people. B. assigning power or duties to subordinates. C. an autocratic way of dealing with people. D. a Theory X management view.

B Assigning power or duties to subordinates. This is utilized in a positive, democratic management system. Theory X managers would not delegate responsibility because they believe employees do not want it.

Loss due to shoplifting is an example of a(n) __________ business risk. A. economic B. human C. natural D. internal

B Human. The possibility of financial loss in marketing is called risk. Human risks are those risks that result from human weakness and unpredictability. Economic risks are those risks related to changes in the market that force a lowering of prices, a change of product, or even failure of businesses. Natural risks are those that result from natural causes such as fires, floods, etc. Since shoplifting is theft by persons who are not employees of the business, it is not considered an internal risk.

Electrical storms, floods, and earthquakes are examples of __________ risk. A. human B. marketing C. natural D. economic

C Natural. Natural risks are chances of loss which result from natural causes. These are natural phenomena occurring outside anyone's control. Economic risks are chances of loss due to changes in the market that force a lowering of prices, change of products, or even failure of businesses. Human risks are chances of loss caused by human weakness and unpredictability. Marketing is not a classification of risk.

The primary purpose of developing a work breakdown structure (WBS) for complex projects is to A. monitor human resources and supplies. B. document the benefits of the project. C. organize the work in a logical sequence. D. identify potential stakeholders.

C Organize the work in a logical sequence. A work breakdown structure (WBS) is the process of dividing project tasks into meaningful components to complete the project. Creating the WBS involves organizing everything that needs to be done in a logical sequence, to ensure that the project's goals are achieved and deliverables are delivered on time. The project's benefits and stakeholders are identified in the statement of work (SOW). Monitoring human resources and supplies is a management activity.

When Deidra was developing the statement of work (SOW) for a complex construction project, she included a statement that describes the things that the project will and won't include. This statement is defining the project A. outcome. B. scope. C. risks. D. constraints.

. B Scope. The statement of work (SOW) is a document that outlines the terms, commitments, and conditions of the project. It includes information about the project's activities, timelines, and deliverables. The scope statement is a component of the SOW that clearly defines the things that the project will do, as well as the things it won't do. The scope statement clarifies the boundaries of the project. The outcomes, risks, and constraints are issues discussed in other components of the SOW.

Risks that are caused by changes in the market and affect the production and distribution of products are called __________ risks. A. economic B. human C. marketing D. environmental

A Economic. There are three main categories of risk and one category is economic risks. Economic risk is related to production, distribution, and consumption of goods and services. Some common economic risks are competition, government intervention, and shortage of resources. Human risk is caused by negative personal characteristics. Marketing risk is a term used to describe all kinds of risk encountered in marketing. Environmental is a natural risk.

During what phase of the project life cycle does the project manager activate project controls? A. Execution B. Planning C. Definition D. Closing

A Execution. During the execution phase, project activities are being carried out. During this phase, the manager controls and monitors the work that is being performed. During the definition phase of the project, the project is initiated and the project charter is developed. The project objectives, work breakdown structure, and resource allocation needs are established during the planning phase of the project. During the closing phase of the project, the deliverables are evaluated and team members and equipment returned or reallocated to other functions.

ABC Builders are two months behind schedule on the mall they are building. Management has decided to "crash" the project. Which of the following is an example of "crashing" a project: A. Hire ten additional construction workers B. Stop the project and allow another company to finish it C. Start installing lights now instead of waiting until the painting is complete D. Extend the completion date by two months

A Hire ten additional construction workers. Adding more resources to a project to shorten its duration is called "crashing." Stopping the project would not shorten its duration; rather, it would cause the project to be incomplete. Rescheduling tasks that were originally scheduled to run one after the other so that they run at the same time (in this example, installing the lights and painting at the same time) is called "fast tracking" a project. Extending the completion date is a major change to the project that requires many people to approve it. It is not an example of crashing, which is a means of adding resources to get the project done on time.

After the new video game "Rocket Bunny" arrived on store shelves, the team that created it had a meeting to talk about the project. They discussed the project's slow start and how they could have done it better. They also talked about using a wiki to communicate and how they will use wikis again in future projects. The Rocket Bunny team is engaging in a A. lessons learned meeting. B. project planning meeting. C. project monitoring meeting. D. meeting to select the project champion.

A Lessons learned meeting. It is important for teams to discuss and document the lessons learned from a project after it is complete. These lessons can then be used to improve work on future projects. A project planning meeting happens either at the beginning of a project (to create the project plan) or in the midst of the project (to make changes to the project plan). After the project is over, the plan is complete. Monitoring takes place during a project and ends when the project ends. The project champion is the person in the organization who has the authority to use resources within or outside an organization for completion of a given project. S/he serves as the single point of contact between upper management and those working on the project. A project champion is identified at the beginning of the project.

Employing guards and training employees to detect and report shoplifting are examples of a business's __________ measures. A. loss prevention B. marketing plan C. competitive D. inventory control

A Loss prevention. Efforts to prevent losses to the business by careful, advance planning are forms of loss prevention. Other such measures include bonding employees who handle valuables and eliminating safety hazards. A marketing plan is a set of procedures or strategies for attracting the target customer to a business. Competitive measures include all the techniques used by a business in order to attract customers away from competing businesses. Inventory control is tracking the amount, the kind, and the value of inventory that a business has on hand.

When identifying the necessary equipment and supplies, it is important that these resources A. meet the requirements of the project. B. are available in-house. C. belong to local organizations. D. are easy to obtain and use.

A Meet the requirements of the project. It is important not only to identify the needed equipment and supplies, but also to make sure that the resources meet the requirements of the project. There are probably specifications or blueprints that indicate sizes and types of materials as well as directions on how to use the resources. If you obtain the wrong size or type, you may not be able to complete the project. The necessary equipment and supplies do not need to be available in-house or belong to local organizations. Some equipment and supplies may be easier to obtain and use than others. However, it is important that the resources meet the requirements of the project, even if they are more difficult to obtain and use.

Kevin is planning to paint a house. He draws a simple graph that shows the sequence of tasks that will be done from beginning to end of the project. For example: 1) Buy supplies, 2) Prepare house for painting, 3) Paint house, and so on. This is an example of a A. network diagram. B. work breakdown structure. C. scope management plan. D. project charter.

A Network diagram. A network diagram is used to plan and track the project from beginning to finish. A work breakdown structure shows the "part-whole" relationships in a project. In this example, the network diagram shows the major steps of the project from beginning to end. For example, each task in Kevin's project requires sub-steps that would be diagrammed in a work breakdown structure (e.g., sub-steps required to prepare house for painting: take down shutters, scrape off chipping paint, etc.) A scope management plan defines the project's purpose, rationale, the results to be achieved, and the products to be developed. A project charter is a written overview of a project that includes information such as the project purpose, goals, and products. It also identifies the project manager and authorizes him/her to begin work on the project.

Which of the following statements best describes the concept of customer relationship management (CRM) in business: A. Obtaining and applying information about a customer's preferences and needs in ways that will build an ongoing buyer/seller relationship B. Customizing a wide variety of goods and services that will encourage customers to continue buying from a specific business C. Using nonpersonal promotion to communicate product information to customers for the purpose of obtaining repeat sales D. Acquiring and manipulating external data in order to appeal to new market segments and gain market share from the competition

A Obtaining and applying information about a customer's preferences and needs in ways that will build an ongoing buyer/seller relationship. Customer relationship management (CRM) is the strategies, processes, and policies used by businesses to build, maintain, and maximize the long-term value of customer relationships. To build a loyal relationship with a customer, a business must know a customer's needs, wants, and preferences and take steps to accommodate these needs, wants, and preferences on an ongoing, consistent basis. To maintain customer loyalty, a business must be able to effectively communicate with the customer in many ways—both personal and nonpersonal. Not all businesses can or want to customize their product mix; however, they can use technological applications to personalize the messages that they send to customers. Although a business might want to use CRM strategies to increase market share by appealing to new market segments, this does not always involve manipulating external data.

A primary purpose of preparing a work breakdown structure for a project is to A. streamline the workload. B. set the project goals. C. identify the project deliverables. D. evaluate the quality of resources.

A Streamline the workload. Work breakdown structure (WBS) is the process of dividing project tasks into meaningful components. Developing the WBS facilitates the project manager's ability to identify all of the necessary tasks to complete the project. The WBS helps the project manager effectively schedule, assign, streamline, and monitor complex project activities, so the project runs as smoothly as possible. Setting goals, identifying project deliverables, and evaluating the quality of resources are activities performed during the project initiation phase. Evaluating the quality of the resources may be performed during the close-out phase of the project, as well.

Which of the following is the main purpose of management: A. To accomplish the business's goals B. To reach a specific level of productivity C. To obtain the needed resources D. To create a pleasant working atmosphere

A To accomplish the business's goals. Management is the logical process of coordinating resources, such as money and employees, in order to accomplish an organization's goals. Some ways that management can do this are by obtaining needed resources and creating a good working atmosphere in which workers can be as productive as possible.

What question should the purpose statement of a project's statement of work (SOW) answer? A. Why are we doing this project? B. What is this project going to produce? C. What materials do we need to do this project? D. Who will carry out this project?

A Why are we doing this project? The purpose of the project defines the reason for the project. Defining the purpose is critical because the project's goals, activities, and deliverables are based upon the purpose statement. To define the purpose, stakeholders need to determine why the project needs to be done. What the project will produce is asked when determining deliverables. Questions about the materials and the project team are related to resources that will be needed to complete the project.

Which of the following statements is true about customer relationship management (CRM): A. A business has implemented a CRM program if it is providing good customer service. B. A primary goal of CRM is to maximize the long-term value of customer relationships. C. Price is the most important factor in building a long-term buyer/seller relationship. D. Organizational culture has little effect on a customer's experiences with a business.

B A primary goal of CRM is to maximize the long-term value of customer relationships. Customer relationship management (CRM) involves the use of strategies, processes, technology, and people to build, maintain, and maximize the long-term value of customer relationships. Although one aspect of effective CRM is providing excellent customer service, customer service is not the only factor that affects a customer's loyalty to a business. A business can provide excellent customer service without having a formal CRM program in place. Other aspects that affect CRM include the business's organizational culture. It is important that employees adopt the business's customer-relationship philosophy to facilitate positive relationships with customers. Price is one factor that may affect the long-term buyer/seller relationship, but is not the most important factor to all customers. Customers also consider factors such as convenience and product quality.

Which of the following is a question that should be answered when developing the "lessons learned" document: A. What equipment should we use? B. How can we improve? C. Who are our stakeholders? D. What are the risks?

B How can we improve? During the closing phase of the project, the project team develops the "lessonslearned" document, which summarizes the project's successes and failures. The document also includes suggestions for improvement for similar projects in the future, such as process changes or additional staff support. To include the suggestions for improvement, the project team needs to answer the question, "How can we improve?" Questions regarding needed equipment, stakeholders, and risks are addressed during the initiation phase of the project.

Which of the following is a true statement about a project charter: A. It assesses the actual outcomes of the project. B. It serves as authorization to start the project. C. It describes in detail the tasks to complete the project. D. It can be modified by the project team members.

B It serves as authorization to start the project. The project charter is a document that outlines the purpose and terms of the project. It serves as a contract with the project's stakeholders. When all stakeholders agree and sign the project charter, it serves as authorization for the project team to begin the project. Actual outcomes cannot be assessed until the project is completed. The work breakdown structure divides the project into work packages and tasks. Often, detailed task information is described in the work breakdown structure dictionary. The project charter may be slightly modified, but any modifications must be approved and signed off on by all stakeholders. Usually, any modifications to the project charter are made by the project manager

The impact of some business risks can be reduced if the business transfers the risk to another business by A. hiring a risk specialist. B. purchasing insurance. C. employing security guards. D. installing burglar alarms.

B Purchasing insurance. Insurance is a contractual agreement in which one company (insurer) will pay for specified losses incurred by the other company (insured) in return for installment payments (premiums). Purchasing insurance does not prevent or control disaster, but it can protect the business from financial loss if a disaster occurs. The other alternatives are actions the business can take that may help to prevent losses, but they do not transfer the risk to another business.

What is the primary purpose of developing a post-implementation review during the closure phase of a project? A. To document necessary changes for future projects B. To determine if the deliverables achieved project goals C. To formally release all resources from the project D. To archive all project documentation

B To determine if the deliverables achieved project goals. After the stakeholders receive the project deliverables, the project manager develops a post-implementation review. The post-implementation review is a formal, detailed assessment of the completed project in relation to the project's objectives. The document assesses the project's budgets, deadlines, processes, and the stakeholders' satisfaction with the results or deliverables. The "lessons learned" document outlines the successes and problems with the project. It includes suggestions for improvement for subsequent, similar projects. Although releasing project resources and archiving project documentation are important aspects of closing a project, these activities are not the primary purpose of the post-implementation review.

Isabelle is developing a document that divides a long-term project into meaningful subprojects and tasks, which she will use to guide the workflow. Isabelle is developing the A. project status report. B. work breakdown structure. C. data interchange program. D. technical operating system.

B Work breakdown structure. A work breakdown structure (WBS) is the process of dividing project tasks into meaningful components to complete the project. Dividing the project into small work packages helps the project manager effectively schedule, assign, and monitor project activities. Isabelle is not developing a project status report, data interchange program, or a technical operating system.

Which of the following would be part of the management function of organizing: A. Setting company goals B. Taking corrective action C. Assigning individual workers to specific jobs D. Interviewing customers about product preferences

C Assigning individual workers to specific jobs. Organizing is the management function of setting up the way the business's work will be done. Management is the process of planning, organizing, directing, and controlling activities in order to achieve goals or objectives. Assigning workers to do certain tasks is part of the organizing function. Setting company goals is part of planning. Taking corrective action is part of controlling. Interviewing customers is a job to which specific workers might be assigned.

Which of the following management functions evaluates an organization's performance and corrects any problems that may exist: A. Analyzing B. Directing C. Controlling D. Organizing

C Controlling. Comparing the firm's performance with its plans should be an ongoing process. This not only shows the direction the business is taking but enables the business to correct small problems before they grow into big ones. Directing is the management function that provides guidance to workers so that they can help the business meet its goals. Organizing is deciding how the work required by an organization will be divided. Analyzing, or examining in a methodical way, is not a management function.

Before selecting the right people to work on a project, it is important to identify the A. required supplies. B. tangible resources. C. needed skills. D. physical facilities.

C Needed skills. You know you need people to work on a project. Before you can identify the right people, you need to decide what skills are needed. For example, do you need people to use hand tools or lift heavy boxes? Once you determine the needed skills, you can select people who have those skills and are willing to participate. Tangible resources are the supplies, equipment, and materials needed to complete a project as well as the physical facilities that might be needed.

In which section of the statement of work (SOW) document would you find the following information: "AJB International will be responsible for collecting the research for the project, but will not interpret the results." A. Purpose statement B. Communication plan C. Scope statement D. Goals and objectives

C Scope statement. The statement of work (SOW) is a document that outlines the terms, commitments, and conditions of the project. The scope statement is a component of the SOW that clearly defines the things that the project team will do, as well as the things it won't do. The purpose statement defines the purpose of or reason for carrying out the project. The communication plan provides details about the types of reports and other forms of communication that the project team will provide stakeholders. The goals and objectives section of the SOW outlines the desired outcomes of the project.

Which of the following is an activity performed during the planning phase of a project: A. Feasibility analysis B. Schedule implementation (execution) C. Concept identification D. Budget development

D Budget development. During the planning phase of a project, the project manager develops the budget, prepares the work breakdown structure, and allocates resources. During the execution phase, the work activities are implemented in accordance to the project schedule. The project-definition phase involves identifying the project concept and conducting a feasibility analysis.

During what phase of the project does the project manager release the project's equipment, supplies, and team members? A. Definition B. Implementation C. Planning D. Closing

D Closing. When a project has been completed, the project manager returns the equipment and supplies to vendors or departments and releases team members to their previous duties. During the implementation phase, the team members use the resources to perform project tasks. During the planning phase, the project manager determines the resources that will be needed to complete the project. The stakeholders define the project's purpose during the initiation phase of the project.

A furniture store manager who helps an employee decide when and where products should be delivered performs which management function? A. Organizing B. Controlling C. Staffing D. Directing

D Directing. Directing is providing guidance to workers and work projects. An example of directing would include a furniture store manager assisting employees with product deliveries. Controlling involves monitoring the work effort. Staffing involves finding workers for the business. Organizing is setting up the way the business's work will be done.

Which of the following is an internal human resource that a business can use to perform the work to complete a project: A. Intermediaries B. Vendors C. Customers D. Employees

D Employees. Because employees work for the business, they are an internal resource the business can use to complete a project. Vendors (suppliers), customers, and intermediaries (supply-chain channel members) are external resources.

Cutting costs is one way for a business to manage a project's __________ resources. A. support B. human C. intangible D. financial

D Financial. Resources are people or items that the business needs to accomplish an activity or project. Financial resources provide money to pay workers and buy the goods and services that the business needs to complete a project. When a project goes over budget, a business must take steps to cut costs. To cut costs, the business might decide to use lower quality goods or make do with fewer supplies. Human resources are the people who carry out the work. Intangible resources cannot be detected through the senses. Support resources refer to the additional help (e.g., volunteers, donations, technology) that the business uses to complete a project.

An important part of the planning function of management is to determine the business's A. sales. B. profits. C. wants. D. goals.

D Goals. Planning is deciding what will be done and how it will be accomplished. Managers begin the planning process by determining the goals and objectives they want the business to achieve. Then, they select the appropriate resources that will be needed to reach these goals. The planning function of management does not involve determining the business's sales, profits, or wants.

Customer relationship management can help a business to identify its A. financial strengths and weaknesses. B. best-selling products. C. most talented employees. D. most valuable customers.

D Most valuable customers. Customer relationship management can help a business identify its most valuable customers. By tracking and organizing customer information, the business can determine which customers spend the most now as well as which customers have the potential to spend the most in the future. CRM is not designed to help a business identify its best-selling products, its most talented employees, or its financial strengths and weaknesses.

Why is it important to build in a safety net, or padding, when identifying resources? A. To obtain financial support B. To try to cut corners C. To find substitutes D. To plan for the unexpected

D To plan for the unexpected. When identifying resources, it is important to be realistic. This often means planning for the unexpected because it's not a good idea to assume that everything will go correctly. Therefore, it is important to build in a safety net, or padding, in case something happens. For example, allow a little more time in the event that project members need to deal with other activities. It is not a good idea to try to cut corners and get by with less than you really need. Building in a safety net does not involve finding substitutes or obtaining financial support.

Trevor needs to determine the procedures that he needs to follow for a specific project work activity. Trevor can locate that information in the A. production schedule. B. project's statement of work. C. network diagram. D. work breakdown structure dictionary.

D Work breakdown structure dictionary. Preparing the work breakdown structure (WBS) is the process of dividing project tasks into meaningful components to complete the project. The WBS helps the project manager identify tasks and effectively schedule, assign, and monitor complex project activities. The work breakdown structure dictionary is a comprehensive "manual" that outlines project standards, activity procedures, processes, and terminology. Team members can refer to the WBS dictionary if they need to obtain information about how to carry out a task or activity. Project objectives are provided to stakeholders in the statement of work (SOW) document, which may also include information about the costs associated with the project. A network diagram is a graphic representation (e.g., map, chart) of the project's schedule. A production schedule provides general deadlines for various activities and tasks.

Angela, a busy manager, asks her assistant Frank to coordinate a large meeting. This is an example of A. creating a cross-functional team. B. delegating work to others. C. assessing Frank's performance. D. meeting Frank's primary motivational needs.

Delegating work to others. Angela is using delegation to transfer authority for the meeting to Frank. A crossfunctional team consists of persons with a wide variety of skill sets suited for a particular project. In this example, Frank is the only person working on the meeting—not a team. Although Angela may later assess Frank's work on coordinating the meeting, asking him to handle the task is not an assessment. Primary motivational needs are desires for things that the body cannot live without, such as food, water, and air. Although this task may meet some of Frank's secondary needs (e.g., power, achievement, and acceptance), coordinating the meeting in no way impacts his primary needs.