Chapter 02 : Project Selection and Prioritization

Which of the following statements concerning strategic analysis is TRUE? (A) Strategic analysis focuses exclusively upon external analysis (B) External analysis focuses on the threats and opportunities facing the organization (C) External analysis focuses on the strengths and weaknesses of the organization (D) Internal analysis focuses on the threats and opportunities facing the organization

(B) External analysis focuses on the threats and opportunities facing the organization

Many writers have stated that for strategic objectives to be effective, they should be : (A) broad—to cover many dimensions of the business (B) measurable—to track progress (C) resource based—to focus on the inputs (D) unachievable—to inspire maximum performance

(B) measurable—to track progress

Once selected projects have been prioritized, it is time to assign resources to each. Resources could include all of the following EXCEPT : (A) subject matter experts (B) quality metrics (C) equipment (D) funds

(B) quality metrics

All of the following statements are true EXCEPT : (A) A program manager has the discretion to make trade-offs regarding which projects to pursue (B) A portfolio may contain multiple programs and projects (C) A project manager has the discretion to make trade-offs regarding which programs to pursue (D) Projects have a finite timeline, while programs may exist as long as the parent organization does

(C) A project manager has the discretion to make trade-offs regarding which programs to pursue

This document summarizes why the project is important by describing the benefits of a selected component, and is used as a basis for authorizing further project management activities : (A) SWOT analysis (B) Guiding principle (C) Business case (D) Program management plan

(C) Business case

Consider the information provided in Figure 2-1. Based on the results in the project selection and prioritization matrix, which project would you select if you were limited to selecting only one project ... (A) Project C (B) Project A (C) Project B (D) Project D

(C) Project B

Based on the information provided in Figure 2-1, which project is LEAST attractive based on new products ... (A) Project A (B) Project D (C) Project C (D) Project B

(B) Project D

On an Agile or adaptive project, the goal is often to produce a : (A) Minimum Viable Product (MVP) (B) Cost-benefit Analysis (C) Business Case (D) Subproject

(A) Minimum Viable Product (MVP)

Figure 2-1 Project Selection and Prioritization Matrix Based on the information provided in Figure 2-1, which criterion is most important to the leadership team ... (A) New products (B) Supplier relations (C) Success probability (D) Customer relations

(A) New products

Which of the following responses most accurately depicts the correct sequence of activities in the strategic planning process ... (A) Strategic analysis - guiding principles - strategic objectives - flow-down objectives (B) Guiding principles - strategic analysis - strategic objectives - flow-down objectives (C) Strategic objectives - strategic analysis - guiding principles - flow-down objectives (D) Guiding principles - strategic objectives - flow-down objectives - strategic analysis

(A) Strategic analysis - guiding principles - strategic objectives - flow-down objectives

All of the following factors influence the opportunities and threats an organization must consider when performing a strategic analysis EXCEPT: (A) employees (B) competitors (C) suppliers (D) regulatory agencies

(A) employees

All of the following statements concerning project portfolios are true EXCEPT : (A) portfolios cannot include operations (B) portfolios usually include a mix of some high-risk, high-reward projects and some low-risk projects (C) the projects, programs, and sub-portfolios in a portfolio are managed as a group to achieve strategic business objectives (D) each project in the portfolio should have a direct positive impact on the organization

(A) portfolios cannot include operations

A clear and inspirational vision statement will have all the following characteristics EXCEPT : (A) provides a detailed roadmap for managing a project (B) is long-term desired change or direction (C) often requires extra effort to achieve (D) is often about multiyear goals

(A) provides a detailed roadmap for managing a project

All of the following may be negotiated between a client company and a contractor EXCEPT : (A) selection criteria for scoring models (B) the amount of money to be paid (C) personnel assignments (D) quality standards

(A) selection criteria for scoring models

An organization's vision often includes reference to its social, environmental, and economic health, collectively referred to as the : (A) triple bottom line (B) business case (C) net present value (NPV) (D) statement of work (SOW)

(A) triple bottom line

Which of the following statements correctly describes a weakness associated with the financial project selection model ... (A) Payback period models do not consider the profit to be realized after the costs are paid (B) The Net Present Value (NPV) method does not consider the time value of money (C) The benefit-to-cost models favor projects which generate the smallest absolute return over a specified period (D) The Internal Rate of Return (IRR) method is difficult to use when a project has conventional cash flows

(C) The benefit-to-cost models favor projects which generate the smallest absolute return over a specified period

The ____________________ best describe(s) why a project is being undertaken . (A) source selection criteria (B) subprojects (C) business case (D) statement of work

(C) business case

All of the following factors should be assessed to determine an organization's ability to perform projects EXCEPT : (A) do we have teams with the right attitude to work together, use free and open communication, be creative, and be empowered to make decisions? (B) do we have clearly defined project management processes? (C) do teams and individuals follow instructions well? (D) do we monitor and understand our external environment?

(C) do teams and individuals follow instructions well?

All of these are characteristics of programs EXCEPT : (A) larger scope than projects (B) significant benefits (C) high-level component plans (D) high-level program plan

(C) high-level component plans

Projects may be undertaken as a result of any of the following strategic reasons EXCEPT : (A) social need (B) environmental considerations (C) need to keep workers busy during slow times (D) market demand

(C) need to keep workers busy during slow times

A narrative description of products, services, or results to be delivered by the project is a/an : (A) request for information (B) business case (C) project statement of work (D) elevator pitch

(C) project statement of work

Which of the following is a financial analysis tool that an organization may use to determine the cost-value of potential projects ... (A) Internal rate of return (IRR)) (B) Net present value (NPV) (C) Payback period (PP) (D) All of the above

(D) All of the above

All projects should be aligned with their organization's strategic plan, which includes the organization's vision, goals, and objectives. Which of these describes an organization's vision ... (A) Is SMART: specific, measurable, achievable, results-based, and time-specific (B) Includes the organization's core purpose, core values, beliefs, culture, primary business, and primary customers (C) Describes short- and long-term results along with measures to determine if they have been achieved (D) Conveys a larger sense of organizational purpose and is both inspiring and guiding

(D) Conveys a larger sense of organizational purpose and is both inspiring and guiding

Which of the following is NOT a typical source selection criterion that an organization would use to evaluate potential contractors ... (A) Life cycle cost (B) Technical approach (C) References (D) Personalities

(D) Personalities

This Agile term used in project selection and prioritization represents a wish-list of things that may be created by the project team ... (A) Product vision (B) Product roadmap (C) Epic (D) Product backlog

(D) Product backlog

Based on the information provided in Figure 2-1, which project has the highest probability of success ... (A) Project C (B) Project A (C) Project D (D) Project B

(D) Project B

Which of the following statements BEST describes the contemporary use of financial models and scoring models for project selection ... (A) Financial methods are preferred because they ensure alignment with the organization's strategic goals (B) One of these techniques is typically used to the exclusion of the other, due to time demands (C) Scoring models are unreliable because they fail to consider financial factors (D) These approaches are often used together to ensure both financial and nonfinancial factors are considered when selecting projects

(D) These approaches are often used together to ensure both financial and nonfinancial factors are considered when selecting projects

When selecting projects, it is important to understand the following types of environments and their potential effects on the project : (A) political (B) social (C) market (D) all of the above

(D) all of the above

All of the following criteria serve as a valid basis for identifying potential projects in most organizations EXCEPT : (A) environmental consideration (B) technological advance (C) social need (D) internal politics

(D) internal politics

A collection of projects, programs, and operations managed as a group to achieve strategic objectives is called a : (A) subprogram (B) life cycle (C) process (D) portfolio

(D) portfolio