Tag: AKTU MBA Objectives Question & Answer

Question Bank

SHRM Objectives Set 2

indiafreenotesby indiafreenotes1
  1. Which selection method remains the most used by organisations?
  • Interviews
  • Ability tests
  • References
  • A trial period

 

  1. Which items below are’ forms of perceptual errors made during the selection process?
  • Like-me judgements
  • A candidate’s time-keeping
  • The interview setting
  • The time of day

 

  1. Which of the below is a form of interview used in candidate selection?
  • The appraisal interview
  • The competency based interview
  • The disciplinary interview
  • The return to work interview

 

  1. The interview is used as a method for determining:
  • The personality of the candidate
  • The degree of fit between the applicant and the demands of the job.
  • His/her age.
  • Physical attributes

 

  1. According to the Leitch Review of Skills (2006), the ability of firms to succeed in the face of growing international competition depends increasingly on;
  • Work culture
  • Relaxed legal system
  • Good infrastructure
  • Skilled labour

 

  1. What is the main reason employers give why employees are not fully proficient?
  • Lack of experience
  • Over qualified
  • Lack of numeracy skills
  • Lack of literacy skills

 

  1. Which of the stages below are part of the Systematic Training Cycle?
  • Analyse operating conditions
  • Design training
  • Deliver on time
  • Evaluate customer feedback

 

  1. What is the main disadvantage of off-the-job learning?
  • It isn’t always directly related to real organisational issues and needs
  • The time needed to set up
  • Accessibility for those training
  • Long term costs

 

  1. A cultural view of learning considers the values and norms of communities through:
  • Myths, legends and proverbs
  • Music, song and dance
  • Rituals, language and religion
  • Talk, practices and stories

 

  1. What is a ‘communities of practice’ approach to organisational learning?
  • An approach that focuses on practising ‘best practice’
  • An approach that focuses on the values, beliefs and norms of a social group
  • An approach that focuses on the skills embedded within the group
  • An approach that has a clear set of defined practices to use in all situations

 

  1. Chase’s study (1997) identified what issue as being the biggest obstacle to creating a knowledge creating company?
  • Limited resources for training and development
  • Organisational culture
  • Failure of management
  • Inability to access learning material

 

  1. What is the most common form of organisational intervention designed to improve employee wellbeing?
  • Secondary and tertiary
  • Primary
  • Variable
  • Best-fit

 

  1. What are the main aims of Employee Assistance Programmes?
  • To alter the organisational culture
  • To address team and individuaf performance and well-being in the workplace
  • To focus the attention Of employees to the power structures of an organization
  • To establish effective methods of care and support for ‘everyone in an organization

 

  1. How does the selection of an international assignee usually take place?
  • Formal interview process with internal staff.
  • Informal discussion based on chance conversations with internal staff.
  • Informal discussion between each member of a specific team.
  • Formal recruitment process that includes internal and external candidates

 

  1. Which multinational bank used business sponsors to monitor international assignees?
  • Oman International Bank
  • Falcon International
  • HSBC
  • Barclays

 

  1. What is the major problem with the theorizing of strategic IHRM?
  • It becomes obsolete very quickly as change occurs so fast
  • It is biased towards western ideas
  • It tends to offer a highly idealised perspective on strategy formulation
  • It fails to incorporate conflict

 

  1. How can HRM help to build successful cross-border alliances?
  • By ensuring that organisations spend 25% of their budgets on cross-border alliances
  • By ensuring that a strategy is in place before embarking on a cross-border alliance
  • By ensuring that organisations export their ideas to other societies and cultures
  • By ensuring that international joint ventures are staffed by high-quality managers

 

  1. Which of the following statements most accurately defines human resource management?
  • human resource management contributes to business strategy and plays and important role in the implementation of business strategy
  • human resource management is an approach to managing people
  • human resource management seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce, using an integrated array of cultural, structural and personnel techniques
  • human resource management focuses on people as the source of competitive advantage

 

  1. Which of the following techniques are not connected with human resource planning?
  • succession planning
  • management of change
  • simple linear regression
  • Markov matrix analysis

 

  1. Which of the following is NOT true of the activity known as job analysis?
  • it aims to describe the purpose of a job and the conditions under which it is performed.
  • the job elements are rated in terms such as frequency of use or amount of time involved
  • the rate of pay for the job is fixed
  • jobs are broken into elements such as information or relations with other people

 

  1. Which of the following is NOT a common criticism of using personality tests in selection?
  • Good performers in the same job may have different personalities
  • There are no reliable instruments with which to assess personality
  • An individual’s personalitycan vary with circumstances
  • Candidates can fake the answers, so giving a misleading impression

 

  1. Which of the following is not a recruitment technique?
  • Interviews
  • performance appraisal
  • psychometric testing
  • ability tests

 

  1. Which statement best describes ‘360 degree feedback’? It is:
  • a method used to appraise employees
  • a system where managers give feedback to all their staff
  • a system where feedback on any individual is derived from peers, subordinates supervisors and occasionally, customers
  • a development tool

 

  1. Which of the following would not form part of a flexible reward package?
  • ability to ‘buy and sell’ leave days
  • non-pay items such as child care vouchers
  • cafeteria benefits
  • performance-related pay

 

  1. Which one of the following becomes a creative factor in production?
  • Land
  • Capital
  • Consumers
  • Human Resources

 

  1. People cast in the role of contributors to production are called __
  • Capitalist
  • Land owners
  • Human Resources
  • Consumers

 

  1. Wide range of abilities and attributes possessed by people are called as
  • Management
  • Human Resources
  • Entrepreneur
  • Intreprenuer

 

  1. Deployment of which resource is difficult to master
  • Human
  • Land
  • Capital
  • Natural

 

  1. The focus of Human Resource Management revolves around”?
  • Machine
  • Motivation
  • Money
  • Human

 

  1. Quality- oriented organisation primary concern centers around __?
  • Coordination
  • Communication
  • Human Resources
  • Discipline

 

  1. Quality goals require alignment with:
  • Production
  • Human Resources
  • Finance
  • Purchase

 

  1. Demand for human resources and management is created by
  • Expansion of industry
  • Shortage of labor
  • Abundance of capital
  • Consumer preferences

 

  1. Management function arises as a result of:
  • Consumer preferences
  • Abundance of capital
  • Expansion of industry
  • Shortage of labour

 

  1. Human Resource Management is primarily concerned with:
  • Sales
  • Dimensions of people
  • External environment
  • Cost discipline

 

  1. Human Resource Management aims to maximise employees as well as organisational
  • Effectiveness
  • Economy
  • Efficiency
  • Performativity

 

  1. The difference between human resource management and personnel management is:
  • Insignificant
  • Marginal
  • Narrow
  • Wide

 

  1. Human Resource Management function does not involve:
  • Recruitment
  • Selection
  • Cost control
  • Training

 

  1. Which one is not the specific goal of human resource management?
  • Attracting applicants
  • Separating employees
  • Retaining employees
  • Motivating employees

 

  1. Identify which one is an added specific goal of human resource management:
  • Retraining
  • Learning
  • Unlearning
  • Separating

 

  1. Identify the top most goal of human resource management?
  • Legal compliance
  • Competitive edge
  • Work force adaptability
  • Productivity

 

  1. To achieve goals organisations require employees:
  • Control
  • Direction
  • Commitment
  • Cooperation

 

  1. Human resource management helps improve
  • Production
  • Productivity
  • Profits
  • Power

 

  1. The amount of quality output for amount of input means
  • Productivity
  • Production
  • Sales increase
  • Increase in profits

 

  1. Responding to employees and involving them in decision making is referred to as:
  • Quality of work life
  • Autonomy
  • Empowerment
  • Preaction

 

  1. The main challenge for modern organisations is:
  • To remain ahead of the talent developments in the market
  • To retain the talent they have to realise that talented people are the real wealth of the organisation
  • To find ways to poach talent wherever they can find it
  • none of the above

 

  1. Talent management is:
  • In essence about a contract between the organisation and the employee
  • Also taking into account other factors that unlock value in the business
  • A combination of hard and soft issues (including the psycho-social contract) and taking the new economy into account (i.e. the knowledqe-based economy)
  • all of the above

 

  1. Key factors in skills development and talent management are:
  • A broad definition of talent to ensure inclusivity and
  • Finding a balance between staff development and making staff more employable
  • Compliance with the EE Act
  • Both (a) and (b)

 

  1. Most organisations for Talent Management
  • Will have the same skills requirements for jobs in the future as jobs do not change much
  • Experience a more disengaging workforce who are less loyal
  • Are effective in measuring performance and productivity
  • Have effective and pro-active talent management strategies
  1. Trends in Talent Management include:
  • An increase in post-high school training and education in the future
  • Management and leadership skills are seen as most valuable to modern and competitive organisations
  • Teaching jobs are very difficult to fill
  • All of the above

 

  1. Benefits of Talent Management include:
  • A reduction in the recruitment cycle
  • Creating a competitive advantage
  • Improved client relations and retention
  • (b) and (c)
Management Notes / Question Bank

SHRM Objectives Set 1

indiafreenotesby indiafreenotes1
  1. Identify the managerial function out of the following functions of HR managers.
  • Procurement
  • Development
  • Organizing
  • performance appraisal

 

  1. Which of the following is an example of operative function of HR managers?
  • Planning
  • Organising
  • Procurement
  • Controlling

 

  1. The scope of human resource management includes
  • Procurement
  • Development
  • Compensation
  • all of the above

 

  1. Human resource management is normally in nature
  • Proactive
  • Reactive
  • Combative
  • none of the above

 

  1. The human resource management functions aim at
  • ensuring that the human resources possess adequate capital, tool, equipment and material to perform the job successfully
  • helping the organisation deal with its employees in different stages. of employment
  • improving an organisation’s creditworthiness among financial institutions
  • none of the above

 

  1. Which of the ‘following aptly describes the role of line managers and staff advisors, namely HR professionals?
  • Staff advisors focus more on developing HR programmes while line managers are more involved in the implementation of those programmes.
  • Line managers are concerned more about developing HR programmes whereas staff advisors are more involved in implementing such programmes.
  • Staff advisors are solely responsible for developing, implementing and evaluating the HR programmes while line managers are not all involved in any matters concerning HR.
  • Line managers alone are responsible for developinq, implementing and evaluating the HR programmes while staff advisors are not all involved in any matters concerning HR.

 

  1. Human resource management is the formal part of an organisation responsible for all of the following aspects of the management of human resources except:
  • strategy development and analysis
  • systems, processes, and procedures
  • policy making, implementation, and enforcement
  • management of the organisation’s finances

 

  1. organisation relies on the following sources of capital
  • cultural, human and system capital
  • social, cultural and human capital
  • cultural, human and source capital
  • none of the above

 

  1. To address the challenges and opportunities they face organisations engage in’ a process of strategic management. Strategic management is:
  • short-term focused and composed of organisational strategy, including strategy formulation and implementation
  • long-term focused and composed of the organisation’s mission, vision and value statements
  • long-term focused and composed of organisational strategy, including strategy formulation and implementation
  • short-term focused and composed of the organisation’s mission, vision and value statements

 

  1. Strategic human resource management involves:
  • planning, foresight and analytical decision making
  • setting employment standards and policies
  • linking human resources with strategic objectives to improve performance
  • all of the above

 

  1. The balanced scorecard proposes that organisational success depends on:
  • a focus on only the internal environment of the organization
  • a constantly changing external environment
  • the belief that it is impossible to take a rationalist view of the organisation to make optimal choices
  • an ability to develop a complete list of cause and effect relationships driving a firm’s success

 

  1. Kochan and Barocci’s (1985) model of HRM has three elements. These elements are:
  • the external environment, the internal environment and human resource management
  • HRM/lR system effectiveness, the external environment and the internal environment
  • human resource management, the internal environment and HRM/lR system effectiveness.
  • the external environment, human resource management and HRM/lR system effectiveness

 

  1. The critical role of the SHRM Application Tool is to:
  • develop a better strategic management process to deal with the dynamic changing environment today’s organisations face
  • identify if the organisation has enough staff, if the staff need training, if the compensation practices are appropriate, and if jobs are designed correctly
  • identify and assess a narrow group of actions and plan how the organisation can overcome resistance to change
  • outline techniques, frameworks, and six steps that must be followed to effectively implement change in an organization

 

  1. In which decade did HRM originate?
  • 1950s
  • 1970s
  • 1980s
  • 1990s

 

  1. What are the ideas underpinning ‘soft’, ‘e commitment’, or ‘high-road’ HRM practices?
  • Labour needs to be treated as an asset to be invested in
  • Employees are a cost which should be minimized
  • A lack of mutuality existing between employer and employee
  • A disregard for unlocking discretionary effort

 

  1. Which consulting company is associated with the concept of talent management?
  • Price Waterhouse Coopers
  • Boston Consulting Group
  • Deloitte
  • McKinsey

 

  1. Why are employers interested in employee engagement?
  • To encourage employees to trust their managers
  • To make a quick profit
  • Because engaged employees are more motivated and prepared to give of their best to make the firm succeed
  • To make employees work harder for less

 

  1. Which of the following is a key HR role as defined by Ulrich et al (2009)?
  • Personnel administrator
  • Business ally
  • Payroll adviser
  • Organisational geographer

 

  1. The term ’emotional labour’ is associated with which author?
  • Arlie Hochschild
  • Stephen Fineman
  • David Sims
  • Yiannis Gabriel

 

  1. Why do some commentators claim that it is unlikely that the UK economy will become a knowledge economy?
  • The lack of IT education in schools
  • Culturally low in intelligence.
  • Historically low levels of company investment into research and development
  • Unions try to prevent knowledge transfer from management level to the broader workforce.

 

  1. What measures are typically involved in the rationalising of businesses?
  • Downsizing and. Layering
  • Expanding and Layering
  • Downsizing and Delayering
  • Expanding and Delayering

 

  1. What kinds of practices outlined below are typically associated with non-standard working and flexibility?
  • 9-5 working hours
  • The reduction in distinctions between standard and unsocial hours or standard and extra hours
  • Premium rates for unsocial hours
  • The voluntary agreement of unsocial hours working

 

  1. Which of the following is not a limitation of SWOT (Strengths, Weaknesses, Opportunity, Threats) analysis?
  • Organisational strengths may not lead to competitive advantage
  • SWOT gives a one-shot view of a moving target
  • SWOT’s focus on the external environment is too broad and integrative
  • SWOT overemphasises a single dimension of strategy

 

  1. A marketing department that promises delivery quicker than the production department’s ability to produce is an example of a lack of understanding of the:
  • synergy of the business units.
  • need to maintain the reputation of the company.
  • organisational culture and leadership
  • interrelationships among functional areas and firm strategies

 

  1. XYZ Corp. is centering on the objective of low-cost, high quality, on-time production by curtailing idle productive facilities and workers. The XYZ Corp. is taking advantage of a system
  • Just-In-Time (JIT)
  • Last In, First Out (UFO)
  • First In, First Out (FIFO)
  • Highly mechanized

 

  1. Which of the following lists is comprised of support activities?
  • Human resource management, information systems, procurement, and firm infrastructure
  • Customer service, information systems, technology development, and procurement
  • Human resource management, technology development, customer service, and procurement
  • Human resource management, customer service, marketing and sales, and operations

 

  1. Although firm infrastructure is quite frequently viewed only as overhead expense, it can become a source of competitive advantage. Examples include all of the following except:
  • negotiating and maintaining ongoing relations with regulatory bodies
  • marketing expertise increasing a firm’s revenues and enabling it to enter new markets.
  • effective information systems contributing significantly to a firm’s overall cost leadership strategy.
  • top management providing a key role in collaborating with important customers.

 

  1. The competencies or skills that a firm employs to transform inputs into outputs are:
  • tangible resources
  • intangible resources
  • organisational capabilities
  • reputational resources

 

  1. An array of firm resources include interpersonal relations among managers in the firm, its culture, and its reputation with its customers and suppliers. Such competitive advantages are based upon:
  • physical uniqueness
  • path dependency
  • social complexity
  • tangible resources

 

  1. A company’s ability to meet its short-term financial obligations is measured by which of the following categories?
  • Liquidity ratios
  • Profitability ratios
  • Activity ratios
  • Leverage ratios

 

  1. The “balanced scorecard” supplies top managers with a ___________view of the business.
  • long-term financial
  • detailed and complex
  • simple and routine
  • fast but comprehensive

 

  1. In strategic human resource management, HR strategies are generally aligned with:
  • business strategy
  • marketing strategies
  • finance strategy
  • economic strategy

 

  1. Which of the following is closely associated with strategic human resource management?
  • Efficient utilisation of human resources
  • Attracting the best human resources
  • Providing the best possible training
  • All of the above

 

  1. Treating employees as precious human resources is the basis of the approach.
  • hard HRM
  • soft HRM
  • medium HRM
  • none of the above

 

  1. Strategic human resource management aims to achieve competitive advantage in the market through.
  • Price
  • Product
  • People
  • Process

 

  1. Wright and Snell made important contribution to the growth of:
  • Strategic fit model
  • Strategic labour allocation process model
  • Business-oriented model
  • none of the above

 

  1. Strategic management process usually consists of __ steps
  • Four
  • Five
  • Six
  • Seven

 

  1. One of the components of corporate level strategy is:
  • growth strategy’
  • portfolio strategy
  • parenting strategy
  • all of the above

 

  1. Creating an environment that facilitates a continuous and two-way exchange of information between the superiors and the subordinates is the core of:
  • High involvement management model
  • High commitment management model
  • High performance management model
  • none of the above

 

  1. Boundary crossing is an activity that
  • Creates internal organisational conflict between different departments as they compete to generate new practices
  • Occurs when organisations advance into new areas of the market
  • Undermines the integration of an organisation through the breakdown of the departmental boundaries.
  • Is focused upon achieving internal organisational integration between various organisational roles and units in order to generate creativity and synergy

 

  1. Procedures provide for an important element of consistency in managerial?
  • Direction
  • Strategy
  • Recruitment
  • Decision-making

 

  1. Why has the bureaucratic form of organisation been fundamentally questioned?
  • The pressures of globalisation have rendered it unsuitable.
  • Organisations are experiencing acute pressure to change and pursue innovation as a means of securing business growth.
  • Organisations have grown so large that it is almost impossible to create an effective bureaucracy to manage them.
  • Information Technology has made it redundant.

 

  1. Who famously adopted Taylor’s Scientific Management approach?
  • Ronald McDonald
  • Ralph Lauren
  • Henry Ford
  • James Dyson

 

  1. The most pertinent criticism of the empowerment concept concerns
  • the balance between customers’ wishes and efficiency.
  • the limited evidence for any shift towards a substantially. more empowered workforce.
  • the over-empowerment of employees
  • the limited theorising of the concept.

 

  1. One of the following attributes of potential employees is of heightened interest to employers when recruiting. Which one is it?
  • The candidate’s physical health
  • The candidate’s ability to deal with customers
  • The candidate’s ability to prepare for and cope with an uncertain future
  • The candidate’s organisational abilities

 

  1. Selection is concerned with:
  • The activity to select a suitable pool of candidates.
  • Always being stimulated by the departure of an employee.
  • Always ascertaining a candidate’s personality to ensure a suitable fit.
  • Applying appropriate techniques and methods to select a candidate.

 

  1. Which activities are not associated with workforce planning?
  • Forward planning reviewing internal and external labour supply
  • Assessing capability of workforce to develop any requisite skills
  • Time keeping
  • Identifying areas where recruitment will be needed

 

  1. Why is job analysis so infused with organisational politics?
  • Because it is a process which could lead to contraction of employees in a department and therefore diminishing its power base
  • A result of interdepartmental rivalry
  • Because it is not an objective activity
  • Because it is a process through which companies try to shed labour

 

  1. What do rational processes to recruitment and selection typically ignore?
  • Labour market demand
  • Wages
  • The time it takes to get to work
  • The use of power and micropolitics by managers

 

  1. Which is the most popular method of recruiting applicants to jobs?
  • Radio and TV advertisement
  • Corporate website
  • Employee referral schemes
  • Commercial job boards
Management Notes

Entrepreneurship Development Objectives Set 2

indiafreenotesby indiafreenotes1
  1. An individual who starts, creates and manages a new business can be called _____________.
  • A leader
  • A manager
  • A professional
  • An entrepreneur

ANSWER: D

  1. Trademarks relate to _______.
  • Practice and knowledge acquired through experience
  • The protection of proprietary information of commercial value
  • The right to reproduce ones own original work
  • Brand identity

ANSWER: D

  1. Which could provide an individual with the motivation to start a new business venture?
  • The financial rewards.
  • A desire to be independent.
  • Risk taking
  • All the above.

ANSWER: D

  1. Which of the following factors should not be included in PESTLE analysis?
  • Government re-cycling policy.
  • Proposed reduction in interest rates.
  • Competitor activity.
  • Demographic changes.

ANSWER: C

  1. Which industrial sector promotes small-scale businesses and Entrepreneurship, and has lower barriers to market entry?
  • Service.
  • Manufacturing.
  • Distribution.
  • Agriculture.

ANSWER: A

  1. Why are small businesses important to a country’s economy?
  • They give an outlet for entrepreneurs.
  • They can provide specialist support to larger companies.
  • They can be innovators of new products.
  • All the above.

ANSWER: D

  1. A business arrangement where one party allows another party to use a business name and sell its products or services is known as__________.
  • A cooperative.
  • A franchise.
  • An owner-manager business.
  • A limited company.

ANSWER: B

  1. Which of the following is the reason for business failure __________.
  • Lack of market research.
  • Poor financial control.
  • Poor management.
  • All the above.

ANSWER: D

  1. The use of informal networks by entrepreneurs to gather information is known as _______.
  • Secondary research.
  • Entrepreneurial networking.
  • Informal parameters.
  • Marketing

ANSWER: B

  1. Good sources of information for an entrepreneur about competitors can be obtained from_________.
  • Websites.
  • Product information leaflets.
  • Company reports and published accounts.
  • All the above.

ANSWER: D

  1. A new venture’s business plan is important because ______.
  • It helps to persuade others to commit funding to the venture.
  • Can help demonstrate the viability of the venture.
  • Provides a guide for business activities by defining objectives.
  • All the above.

ANSWER: D

  1. Primary data is________.
  • the most important data.
  • the data that is collected first.
  • new data specifically collected for a project.
  • data that is collected second.

ANSWER: C

  1. Innovation can best be defined as_______.
  • the generation of new ideas.
  • the evolution of new ideas.
  • the opposite of creativity.
  • the successful exploitation of new ideas.

ANSWER: D

  1. Which of these statements best describes the context for entrepreneurship?
  • Entrepreneurship takes place in small businesses.
  • Entrepreneurship takes place in large businesses.
  • Entrepreneurship takes place in a wide variety of contexts.
  • Entrepreneurship does not take place in social enterprises.

ANSWER: C

  1. Entrepreneurs are motivated by _________.
  • money.
  • personal values.
  • pull influences.
  • All the above.

ANSWER: D

  1. Which of the following are described as one of the Big Five personality traits?
  • tolerance of others.
  • need for achievement.
  • propensity to leadership.
  • locus of control.

ANSWER: B

  1. Which of the following is least likely to influence the timing of new business births?
  • Government policies.
  • Profitability.
  • Consumer expenditure.
  • Weather conditions.

ANSWER: D

  1. Which of the following statements is false?
  • Market segmentation is a useful process for small businesses to undertake.
  • Selling is essentially a matching process.
  • A benefit is the value of a product feature to a customer.
  • It is a good idea for small businesses to compete solely on price.

ANSWER: D

  1. The purpose of all good small business strategy is__________.
  • to increase turnover.
  • to increase profitability.
  • to achieve competitive advantage.
  • to achieve stated objectives.

ANSWER: D

  1. Which of the following is a recognized disadvantage of setting up as a start-up as compared with other routes to market entry?
  • less satisfaction of the owners.
  • less help from various agencies.
  • there are more funds required.
  • there is a high failure rate.

ANSWER: D

  1. Someone legally appointed to resolve the financial difficulties of an insolvent firm is called____________.
  • an administrator.
  • a predator.
  • an auditor.
  • a turnaround consultant.

ANSWER: A

  1. Goods or services reach the market place through ________.
  • marketing channels.
  • multilevel pyramids.
  • monopolies.
  • multiplication.

ANSWER: A

  1. To provide financial assistance to entrepreneurs the government has set up a number of___________.
  • financial advisors.
  • financial intermediaries.
  • Industrial estates.
  • financial institutions.

ANSWER: D

  1. State Industrial corporations engage in the development of__________.
  • industrial estates.
  • institutional estates.
  • individual investors.
  • agricultural entrepreneurs.

ANSWER: A

  1. ________ is the first development bank of the country.
  • ICICI.
  • IDBI.
  • SFC.
  • IFCI.

ANSWER: D

  1. IFCI stands for_____________.
  • Industrial finance corporation of India.
  • Institutional finance corporation of India.
  • Industrial funding corporation of India.
  • Indian finance corporation and institution.

ANSWER: A

  1. IFCI has been converted into a________.
  • joint stock company.
  • co-operative society.
  • partnership firm.
  • sole proprietorship.

ANSWER: A

  1. SIDBI was set up as a subsidiary of_________.
  • IDBI.
  • IFCI.
  • ICICI.
  • SFC.

ANSWER: A

  1. Which of the following is a function of SIDBI?
  • Extension of seed capital.
  • Discounting of bills.
  • Providing factoring services.
  • All of the above.

ANSWER: D

  1. SFC is prohibited from granting financial assistance to any company whose aggregate paid up capital exceed__________.
  • 1 crore.
  • 1.5 crores.
  • 2 crores.
  • 2.5 crores.

ANSWER: A

  1. SIPCOT’s financial assistance is in the form of __________.
  • term loan.
  • seed capital scheme.
  • underwriting the capital issues.
  • All of the above.

ANSWER: D

  1. The business development department of SIPCOT guides entrepreneurs in ______.
  • applying for licences.
  • approval on collaboration.
  • allocation of scarce raw materials.
  • All the above.

ANSWER: D

  1. TIIC is sponsored by the__________.
  • Government of Karnataka.
  • Government of Andhra Pradesh.
  • Government of Kerala.
  • Government of Tamil Nadu.

ANSWER: D

  1. In backward areas, term loans for expansion or setting up a new unit are available at __________ .
  • concessional terms.
  • differential terms.
  • standard terms.
  • specific terms.

ANSWER: A

  1. A commercial banker would prefer a ____________ debt-equity ratio over the years as it indicates financial strength of a unit.
  • Declining.
  • Increasing.
  • Stable.
  • Fluctuating.

ANSWER: A

  1. EDPs course contents contains ___________.
  • General introduction to entrepreneurs.
  • Motivation training.
  • Managerial skills.
  • All the above.

ANSWER: D

  1. Entrepreneurial Guidance Bureau(EGB) was set up by____________.
  • SISI.
  • SIPCOT.
  • IIC.
  • SIDCO.

ANSWER: C

  1. _____________ can be defined as a specifically evolved work plan densed to achieve a specific objective within a specific period of time
  • Idea generation.
  • Opportunity Scanning.
  • Project.
  • Strategy.

ANSWER: C

  1. Large investment is made in fixed assets, the project will be termed as __________.
  • Capital Intensive.
  • Labour Intensive.
  • Product Intensive.
  • Market Intensive.

ANSWER: A

  1. PERT stands for __________.
  • Programme Evaluation and Research Techniques.
  • Project Evaluation and Review Techniques.
  • Programme Evaluation and Review Techniques.
  • Project Evaluation and Research Techniques.

ANSWER: C

  1. _____________ is used to accomplish the project economically in the minimum available time with limited resources
  • Project Scheduling.
  • Network Analysis.
  • Budget Analysis.
  • Critical Planning.

ANSWER: A

  1. ______________ is a form of financing especially for funding high technology, high risk and perceived high reward projects
  • Fixed capital.
  • Current capital.
  • Seed capital.
  • Venture capital.

ANSWER: D

  1. In _________, machines and equipments are arranged in the order or sequence in which they are to be used for manufacturing the product
  • Factory Layout.
  • Product Layout.
  • Process Layout.
  • Combined Layout.

ANSWER: B

  1. The term ___________ denotes bonus or financial aid which is given by a government to an industry to help it compete with other units
  • Incentive.
  • Subsidy.
  • Bounty.
  • Concession.

ANSWER: C

  1. he granting of cash subs idy on the capital investment is called __________.
  • Concessional finance.
  • Quantum of Subsidy.
  • Interest Subsidy.
  • Central Investment Subsidy.

ANSWER: D

  1. New Small Scale industries are exempted from the payment of income tax under section 80J is called __________
  • Development Rebate.
  • Investment Allowance.
  • Rehabilitation Allowance.
  • Tax Holiday

ANSWER: B

  1. ____________ is primarily concerned with the identification of the project demand potential and the selection of the optimal technology.
  • Techno-economic analysis.
  • Feasibility analysis.
  • Input analysis.
  • Financial analysis.

ANSWER: A

  1. _____________ refers to some action which is a time consuming effort necessary to complete a specific event.
  • A Network.
  • An Activity.
  • An Event.
  • A Node.

ANSWER: B

  1. _____________ is a graphical representation of the various activity and event relating to a project.
  • Network analysis.
  • Scheduling technique.
  • Logical Model.
  • Network Diagram

ANSWER: D

  1. Activities which must be finished before a given event can occur are termed as _________.
  • Preceeding Activities.
  • Succeeding Activities
  • Concurrent Activities
  • Dummy Activities.

ANSWER: A

  1. Activities which can be accomplished simultaneously are termed as ___________.
  • Preceeding Activities.
  • Succeeding Activities.
  • Concurrent Activities
  • Dummy Activities.

ANSWER: C

  1. EST stands for ____________.
  • Earliest Start Time.
  • Event Start Time.
  • Effective Start Time.
  • Essential Start Time.

ANSWER: A

  1. Additional time which a non-critical activity can consume without increasing the project duration is called _____________.
  • Total Float.
  • Free Float
  • Independent Float.
  • Dependant Float

ANSWER: A

  1. ______________ is an event-oriented approach.
  • CPM.
  • GERT.
  • PERT.
  • WASP.

ANSWER: C

  1. _______________ is an activity-oriented approach.
  • CPM
  • PERT
  • GERT
  • WASP

ANSWER: A

  1. _______________ is the analysis of costs and benefits of a proposed project with the goal of assuming a rational allocation of limited funds.
  • Project formulation.
  • Project evaluation.
  • Project appraisal.
  • Project Design.

ANSWER: C

  1. ______________ may be defined as the excess of present value of project cash inflows over that of out flows.
  • Net present value technique.
  • Average rate of return.
  • Benefit-Cost ratio.
  • Internal rate of return

ANSWER: A

  1. Decisions taken by an entrepreneur on behalf of his enterprise are known as _________.
  • Organizational decisions.
  • Personal decisions.
  • Routine decisions.
  • Strategic decisions

ANSWER: A

  1. Decisions which are concerned with policy matters and exercise fundamental influence on the objectives of the organization are called as____________.
  • Organizational decisions.
  • Personal decisions.
  • Routine decisions.
  • Strategic decisions.

ANSWER: D

  1. __________________ is a problem -solving technique designed to produce numerous ideas in a short period
  • Synectics.
  • Delphi technique.
  • Brain storming.
  • Nominal group technique.

ANSWER: C

61.__________________ is the systematic development of a project idea for the eventual purpose of arriving at an investment decision.

  • Project identification.
  • Project formulation.
  • Project feasibility.
  • Project evaluation.

ANSWER: B

  1. The process of preparing an inventory of skills needed for effective implementation of the project is called as ____________.
  • Economic viability.
  • Financial feasibility.
  • Technical feasibility.
  • Managerial competence.

ANSWER: D

  1. _________________ implies the availability or otherwise of plant and machinery and technical know-how to produce the product.
  • Economic viability.
  • Financial feasibility.
  • Technical feasibility.
  • Managerial competence

ANSWER: C

  1. CPM stands for____________.
  • Continuous Path Method.
  • Clear Path Method.
  • Critical Path Method.
  • Critical Probabilistic Method.

ANSWER: C

  1. _______________ is granted to small scale units under section 33B of the Income tax act, 1961.
  • Depreciation Allowance.
  • Development Debate.
  • Investment Allowance.
  • Rehabilitation Allowance.

ANSWER: D

  1. DGTD stands for __________.
  • Directorate General of Technical Development.
  • District General of Technical Development.
  • District General of Taxation Deduction.
  • Directorate General of Taxation Deduction.

ANSWER: A

  1. A provisional SSI registration certificate is valid for a period of __________.
  • four Years.
  • three Years.
  • two Years.
  • one year.

ANSWER: D

  1. National Alliance of Young Entrepreneurs (NAYE) Sponsored an Entrepreneurial Development scheme with Bank of India in______________.
  • January 1920.
  • August 1920.
  • January 1972.
  • August 1972.

ANSWER: D

  1. Which of the following is not one of the 4 Ms?
  • motivation.
  • management.
  • materials.
  • money.

ANSWER: C

  1. Which of the list below does not form Intellectual Property?
  • Trade marks.
  • Patents.
  • Tangible assets.
  • Copyright.

ANSWER: C

  1. The ‘T’ in a PESTLE analysis refers to ___________.
  • Time.
  • Technology.
  • Training.
  • Talent.

ANSWER: B

  1. A business arrangement where one party allows another party to use a business Name and sell its products or services is known as__________.
  • A cooperative.
  • A franchise.
  • An owner-manager business.
  • A limited company.

ANSWER: B

  1. What is the role of a Business Angel?
  • To provide small business advice.
  • To provide capital for business development in exchange for a stake in the Business ownership.
  • To set up a franchise business.
  • To assist an entrepreneur to open a lifestyle business.

ANSWER: B

  1. A key aspect of the financial section of the business plan is _________.
  • A statement of management skills.
  • A realistic sales forecast.
  • Production capacity.
  • A description of competitors.

ANSWER: B

  1. Which one of the following describes unemployment?
  • The number of people who voluntarily choose not to work.
  • The number of people who are jobless and are actively seeking work.
  • The number of people who are not actively seeking work.
  • The number of people actively seeking work who find work.

ANSWER: B

  1. Idea of new product is tested in potential consumers to determine consumer acceptance at _________ stage.
  • Concept.
  • Product development.
  • Test marketing.
  • Commercialization.

ANSWER: C

  1. Which one of the following is not considered as one of the building blocks of the model entrepreneur?
  • technical skills.
  • management competencies.
  • business awareness.
  • personal attributes.

ANSWER: C

  1. Which of the following factors does the macro-environment not include?
  • political and regulatory factors.
  • customer needs in a given market.
  • social and demographic factors.
  • technological changes.

ANSWER: B

  1. Which of the following statements is false? Electronic commerce:
  • can allow new ventures to compete on more or less equal terms with large firms.
  • can lead to small businesses having reduced contact with its customers.
  • is rarely used in small businesses.
  • is used in many different industries and markets.

ANSWER: C

  1. Strategic entrepreneurial marketing has been summarised as the 4Is: identification of target markets, interactive marketing methods, informal intelligence gathering and what is the fourth?
  • independence.
  • instructiveness.
  • innovation.
  • internet.

ANSWER: C

  1. An entrepreneur who owns more than one business at a time is called ________.
  • an intrapreneur.
  • a corporate entrepreneur.
  • a portfolio entrepreneur.
  • None of the above.

ANSWER: C

  1. Industries producing complete articles for direct consumption & also processing industries is called as_______________.
  • Manufacturing industries.
  • Feeder Industries.
  • Service Industries.
  • Mining or Quarrying.

ANSWER: A

  1. _____________ is primarily concerned with the identification, qualification and evaluation of the project resources.
  • Techno-economic analysis.
  • Feasibility analysis.
  • Input analysis.
  • Financial analysis.

ANSWER: B

  1. LOB stands for____________.
  • Line of Business.
  • Line of Balance.
  • Loss of Business.
  • Loss of Balance

ANSWER: B

  1. Underestimation of project cost leads to ___________.
  • Time under run.
  • Cost under run
  • Time over run.
  • Cost over run

ANSWER: D

  1. New entrepreneurs entering the field of medium industry for the first time can have market studies with the subsidiary of ___________.
  • 75% of the cost or Rs.15000 whichever is less.
  • 75% of the cost or Rs.15000 whichever is high
  • 50% of the cost or Rs.15000 whichever is less.
  • 50% of the cost or Rs.15000 whichever is high

ANSWER: A

  1. Decisions which are concerned with policy matters and exercise fundamental influence on the objectives of the organization are called as____________.
  • Organizational decisions.
  • Personal decisions.
  • Routine decisions.
  • Strategic decisions.

ANSWER: D

  1. Section 80 HHB provides for a deduction of ____________________ of profits and gains earned by a resident Indian company.
  • 65%.
  • 60%.
  • 55%.
  • 50%

ANSWER: D

  1. Decisions which are non-repetitive and novel nature and required to solve unstructured problem is called as ___________.
  • Programmed decisions.
  • Non -programmed decisions.
  • Routine decisions.
  • Strategic decisions.

ANSWER: B

  1. The application for registration of a small scale unit should be submitted to the _______ .
  • General manager, DIC.
  • Director, DIC.
  • General manager. NSIC.
  • Director, NSIC.

ANSWER: A

  1. The type of diversification in which the company adds complementary to the existing product or service line is _________.
  • conglomerate diversification.
  • horizontal integration.
  • vertical integration.
  • concentric integration.

ANSWER: C

  1. Which of the following is not an aspect of appraisal of term loans by commercial banks?
  • Financial feasibility.
  • Technical feasibility.
  • Economic feasibility.
  • Societal feasibility.

ANSWER: D

  1. The type of diversification in which the company adds up same type of products at the same level of production is ____________.
  • conglomerate diversification.
  • horizontal integration.
  • vertical integration.
  • concentric integration.

ANSWER: B

  1. When a firm enters into some business which is related with its present business in terms of technology, marketing or both it is called as _____________.
  • conglomerate diversification.
  • horizontal integration.
  • vertical integration.
  • concentric integration.

ANSWER: D

  1. When a firm enters into business which is unrelated to its existing business both in terms of technology and marketing ______________.
  • conglomerate diversification.
  • horizontal integration.
  • vertical integration.
  • concentric integration

ANSWER: A

  1. District Industries Centres are located ____________.
  • in each district.
  • in each state.
  • only in selected districts.
  • only in selected states.

ANSWER: A

  1. The purpose of soft loan scheme is to encourage units to undertake ___________.
  • modernization of plant and machinery.
  • replacement of plant and machinery.
  • renovation of plant and machinery.
  • all the above

ANSWER: D

  1. Seed capital assistance ___________.
  • a long-term assistance.
  • initial assistance
  • a help for the purchase of seeds.
  • a short-term assistance.

ANSWER: B

  1. EXIM bank is a __________.
  • State-level institution.
  • Regional -level institution.
  • All India institution.
  • International institution.

ANSWER: C

  1. DIC is headed by General Manager in the rank of ___________.
  • Joint Director of industries.
  • Assistant Director of industries.
  • Non-departmental officer.
  • Departmental officer.

ANSWER: A

  1. Institutional agencies grant financial assistance to small scale industries for _________.
  • participation in equity capital only.
  • acquisition of fixed assets.
  • working capital assistance.
  • all of the above.

ANSWER: D

  1. Under section 80J of the income tax act, 1961, small-scale industries are exempted from the payment of income tax on their profits at ___________.
  • 6% p.a.
  • 6% p.m.
  • 5% p.a.
  • 5% p.a.

ANSWER: A

  1. The policy which stressed the role of cottage and small-scale industries for balanced industrial development of the country is ___________.
  • IPR 1940.
  • IPR 1948.
  • IPR 1956.
  • IPR 1977.

ANSWER: B

  1. The policy which emphasized the need of promoting small-scale industries through integrated industrial development is_____________.
  • IPR 1948.
  • IPR 1956.
  • IPR 1977.
  • IPR 1980.

ANSWER: C

  1. The small scale unit wishing to export has to obtain exporters code number from _________.
  • The Reserve Bank of India.
  • The Central Bank of India.
  • Any Regional Bank.
  • Any International Bank.

ANSWER: A

  1. The expenses incurred on the setting up of the enterprise are called as _________.
  • Cost of financing.
  • Cost of promotion..
  • Cost of fixed assets.
  • Cost of current assets.

ANSWER: B

  1. Over – capitalization arises due to___________.
  • excess of assets over the liabilities.
  • excess of liabilities over the assets.
  • actual earnings are lower than the expected earnings.
  • actual earnings are higher than the expected earnings.

ANSWER: C

  1. Under-capitalization arises due to __________.
  • excess of assets over the liabilities.
  • excess of liabilities over the assets.
  • actual capitalization is higher than the proper capitalization.
  • actual capitalization is lower than the proper capitalization.

ANSWER: D

  1. Which of the following leads to over-capitalization?
  • acquiring fixed assets on excessive amounts.
  • under-estimation of initial rate of earnings.
  • using lower-rate of capitalization.
  • under estimation of required funds.

ANSWER: A

  1. Which of the following leads to under-capitalization?
  • raising of more money by issue of shares.
  • acquiring fixed assets on excessive amounts.
  • over-estimation of earnings for enterprise.
  • under-estimation of initial rate of earnings.

ANSWER: D

  1. Business means ________.
  • Commerce.
  • industry and commerce.
  • trade and commerce.
  • selling and buying of goods.

ANSWER: B

  1. A valid definition of a business purpose is to ______.
  • create a customer.
  • maximize profits.
  • serve the society.
  • increase the wealth of the firm.

ANSWER: B

  1. Reserve bank of India is a/an _______.
  • statutory corporation.
  • company limited by guarantee.
  • company limited by shares.
  • unlimited company.

ANSWER: A

  1. A public corporation means _____.
  • public company.
  • government company.
  • statutory corporation.
  • department of union government

ANSWER: C

  1. Promoter is a person who ________.
  • takes part in the incorporation of a company .
  • is a director.
  • is a relative of the managing director.
  • works to publicity to the company.

ANSWER: A

  1. The term Capitalization is used in relation to ______.
  • sole-proprietorship.
  • Partnership.
  • joint stock companies.
  • co-operative societies

ANSWER: C

  1. Which of the following sources is not use for medium term financing?
  • Issue of equity shares.
  • Issue of debentures.
  • Term loans from banks.
  • Sale of current asset.

ANSWER: A

  1. Which of the following securities proves a burden on finances of the company, when company is not earning profits?
  • Equity shares.
  • Preference shares.
  • Redeemable preference shares.
  • Debentures.

ANSWER: D

  1. Investment in which of the following is most risky?
  • Equity shares.
  • Preference shares.
  • Debentures.
  • Land.

ANSWER: C

  1. A project, which may not add to the existing profits, should be financed by _________
  • debentures.
  • preference share capital.
  • equity capital.
  • public deposits.

ANSWER: A

  1. Business risks can be ______.
  • avoided.
  • reduced.
  • ignored.
  • erased.

ANSWER: B

  1. O & M refers to ____________
  • overall efficiency of business.
  • efficiency of office and administrative work.
  • office work measurement.
  • office and management study.

ANSWER: D

  1. The oldest form of business organization is ______.
  • Partnership.
  • sole proprietorship.
  • joint stock company.
  • co-operative undertaking.

ANSWER: B

  1. Memorandum of association of a firm contains _______.
  • rules regarding the internal management of the company.
  • rules regarding the constitution and activities of the company.
  • rules regarding the external management.
  • rules regarding the constitution.

ANSWER: B

  1. A Company is called an artificial person because ____.
  • it does not have the shape of a natural person.
  • it cannot be used in the court of law.
  • it is invisible and intangible.
  • it exists only in contemplation of law.Answer:

ANSWER: C

  1. The charter of a company is its ______.
  • prospectus.
  • statement lieu of prospectus.
  • memorandum of association.
  • articles of association.

ANSWER: A

  1. A person owning and running a small firm, is known as________.
  • A manager-owner.
  • An owner-manager.
  • A professional adapter.
  • An enterprise worker.

ANSWER: B

  1. Which of the following is a characteristic typical of _________?Most entrepreneurs
  • Choose high risk ventures.
  • Choose low risk ventures.
  • Choose moderate (or calculated) risk ventures.
  • Choose no risk ventures.

ANSWER: C

  1. The UK government has implemented a number of policies to encourage Entrepreneurship in schools. One such initiative is _________.
  • Young Enterprise.
  • Youth venture.
  • Young Business.
  • Young Initiative.

ANSWER: A

  1. One of the disadvantages of a franchise business for a franchisee is ________.
  • Lack of independence.
  • Franchise businesses typically have a high failure rate.
  • Lack of brand identity.
  • Training is not normally provided by the franchisor.

ANSWER: A

  1. The Markets and Competitors section of a business plan should contain ____________.
  • A statement of the target market.
  • The size of each market segment.
  • The key characteristics of buyers in each business segment.
  • All the above.

ANSWER: D

  1. As a new company grows, the entrepreneur will need to _________.
  • be responsive to changes in the market.
  • ensure financial controls are maintained.
  • build a management team.
  • all the above.

ANSWER: D

  1. An entrepreneur into the hosiery business found out the reason his hosiery was not selling was due to its color. What could be the best source of this information?
  • Supplier.
  • Retailer.
  • Competition.
  • Government bureau.

ANSWER: B

  1. Entrepreneurship can best be described as _________.
  • a process that requires setting up a business.
  • taking a significant risk in a business context.
  • having a strong vision.
  • a process involving innovation, new products or services, and value creation.

ANSWER: D

  1. ____________, which is included in the project cost, is estimated on the basis of the year when the enterprise breaks even.
  • working capital
  • cost of capital
  • cost of production
  • cost of equity

ANSWER: A

  1. The minimum amount of——————irrespective of such private participation, could be specified at a minimum 17.5 per cent of project costs by lending institutions.
  • bank loans
  • promotors contribution
  • fixed capital
  • working capital

ANSWER: B

  1. __________ set up for the purpose of financing, facilitating, and promoting foreign trade of India.
  • Repco bank
  • SBI
  • EXIM bank
  • HDFC

ANSWER: C

  1. Which of the following is not considered to be a characteristic of a project?
  • An established objective
  • Complex tasks
  • A clear beginning and end
  • Only for internal use

ANSWER: D

  1. Project management is ideally suited for a business environment requiring all of the following except _________.
  • Flexibility
  • Innovation
  • speed
  • Repetability

ANSWER: D

  1. Integration of project management with the organization takes place with the _______________.
  • master budjet
  • strategic plan
  • Process of managing actual projects
  • both b and c

ANSWER: D

  1. The content of the final report typically includes the following topics __________.
  • Executive summary
  • review and analysis
  • recommendations
  • If all the above are correct.

ANSWER: D

  1. Project mission and objectives, procedures and systems used, and organization resources used typically appear in the _____ section of the final project report.
  • Analysis
  • Recommendation
  • lessons learned
  • financial feasibility

ANSWER: A

  1. what are the components of then project report ________.
  • requirement of funds
  • location
  • manpower
  • all the above

ANSWER: D

  1. market potential of the project report includes ________.
  • demand and supply conditions
  • market strategy
  • after sales service
  • all the above

ANSWER: D

  1. Every entrepreneur should draw an _______ for his project to ensure the timely completion of all activities involved in setting up an enterprise.
  • cost structure
  • implementation plan
  • market structure
  • production structure

ANSWER: B

  1. ______________ describes the direction, the enterprise is going in, what its goals are, where it wants to be,and how it is going to get there.
  • project report
  • technical anlaysis
  • market analysis
  • financial analysis

ANSWER: A

  1. Today, many companies are using managerial techniques that are designed to encourage _________.
  • increasing profits
  • legal compliances
  • Ethical behaviour
  • shareholders value

ANSWER: C

  1. Entrepreneurial development is the key to achieve all-round __________ through
  • economic development
  • increase in profits
  • shareholders value
  • business development

ANSWER: A

  1. Swot Analysis is a _____________ tool
  • Conceptual
  • Modern
  • Scientific
  • Traditional

ANSWER: A

  1. NABARD is a Bank for _____________ development
  • Urban
  • Agricultural and Rural
  • Scientific
  • Agriculture and research

ANSWER: B

Question Bank

Project Management objectives Set 2

indiafreenotesby indiafreenotes1

Q1. A communication management plan identifies the relevant information that should be communicated to:

  • The project team.
  • The project stakeholders.
  • The project board.
  • The project sponsor.

Q2. Which one of the following statements is true?

  • Independent reviews and quality audits form part of quality assurance to ensure the project manager delivers on time and to budget.
  • Quality assurance provides confidence to stakeholders that requirements for quality will be exceeded.
  • Quality control verifies that the project deliverables conform to specification, are fit for purpose and meet stakeholder expectations.
  • Quality planning enables the project manager to manage the trade-off between customer expectations and budget.

Q3. Project risk management is best described as:

  • Managing responses to threats.
  • Identifying and acknowledging threats and opportunities.
  • Planning responses to threats.
  • Minimising threats and maximising opportunities.

Q4. Which one of the following best describes a project issue?

  • A major problem that requires formal escalation.
  • A problem that the project manager has to deal with on a day-to-day basis.
  • An uncertain event that may or may not occur.
  • An opportunity that occurs through change control.

Q5. Scheduling can best be defined as the process used to determine:

  • overall project duration.
  • project cost estimating.
  • the project management plan.
  • sub-contractor’s responsibilities.

Q6. Which one of the following statements is true?

  • An increase in project scope is likely to increase project cost.
  • A decrease in the project time is likely to increase project quality.
  • An increase in the project quality requirements is likely to decrease project cost.
  • A decrease in the project cost is likely to decrease project time.

Q7. Which one of the following statements best defines the purpose of a Product Breakdown Structure (PBS)?

  • To define the hierarchy of deliverables that are required to be produced on the project.
  • To define how the products are produced by identifying derivations and dependencies.
  • To establish the extent of work required prior to project commissioning and the handover.
  • To identify the health and safety strategies and procedures to be used on the project.

Q8. Which one of the following is least likely to be a success criteria?

  • A target for the project to receive zero change requests.
  • The date by which the project is to be completed.
  • Delivery of products that meet required specifications.
  • The awarding of bonuses to senior management.

Q9. Which one of the following is a valid project Key Performance Indicator (KPI)?

  • Staff appraisals.
  • Management buy in.
  • Milestone achievement.
  • Master schedule.

Q10. Which one of the following statements is true?

  • The business case is owned by the sponsor and is created during the concept phase of the project life cycle.
  • The business case is owned by the project manager and is created during the concept phase of the project life cycle.
  • The business case is owned by the sponsor and is created during definition phase of the project life cycle.
  • The business case is owned by the project manager and is created during the definition phase of the project life cycle.

Q11. Who owns the Project Management Plan (PMP)?

  • The project team.
  • The chief executive.
  • The project manager.
  • The project support office.

Q12. Which one of the following best describes users?

  • Providers of both strategic and tactical direction to the project.
  • Those intended to receive benefits or operate outputs.
  • Facilitators of an appropriate issue resolution procedure.
  • Those providing full-time commitment to the project.

Q13. Which statement best describes a responsibility of the project manager:

  • to be the sole source of expertise for estimating techniques on cost and time.
  • to deliver the project objectives to enable benefits to be realised.
  • to take ultimate accountability for the delivery of the business benefits.
  • to delegate all accountability for managing time, cost and quality to team leaders.

Q14. A project is typically defined in terms of scope, time, cost and which other parameter?

  • Benefits.
  • Quality.
  • Tolerance.
  • Controls.

Q15. Which one of the following statements is true?

  • Business-as-usual activities cannot be improved.
  • Business-as-usual activities are more difficult to manage than projects.
  • Projects are transient endeavours that bring about change to business-as-usual.
  • A project is always the starting point for operation refinement.

Q16. What is defined as “the ability to influence and align others towards a common purpose”?

  • Teamwork.
  • Motivation.
  • Management.
  • Leadership.

Q17. Which one is a true statement relating to project communications?

  1. A project sponsor is responsible for all communication methods and media.
  2. Different stakeholders typically have different communication needs.
  3. It is best to have a standard set of project reports used for every project.
  4. Email is the only way to communicate with large numbers of people.

Q18. In project management, the term quality is best defined as:

  • inspection, testing and measurement.
  • reviews and audits.
  • fitness for purpose of deliverables.
  • professionally-bound project reports.

Q19. The main outcome of risk identification, in a risk management process, is to:

  • identify and determine the relative importance of the project risks.
  • identify and describe all risks that might occur on the project.
  • identify and determine the responses to the project risks.
  • identify and describe risks that have occurred on previous projects.

Q20. Which one of the following is not considered in resource management?

  • Identifying resources.
  • Influencing resources.
  • Assigning resources to activities.
  • Matching resources to the schedule.

Q21. Which one of the following does project change control primarily seek to ensure?

  • All variance to the project scope is evaluated.
  • No reduction in the perceived quality of the project outcome.
  • Management costs of the project do not increase.
  • Any decrease in the scoped deliverable of the project is rejected.

Q22. Which one of the following is captured in the Work Breakdown Structure (WBS)?

  • The life cycle phases.
  • The logical order of tasks.
  • The scope of the project.
  • Project costs.

Q23. Project reporting can best be defined as:

  • informing stakeholders about the project.
  • storing and archiving of project information.
  • gathering stakeholder feedback.
  • collecting project information.

Q24. Which one of the following statements best defines an estimate?

  • An approximation of project time and cost targets, refined throughout the project life cycle.
  • A prediction of a future condition or event based on information or knowledge available now.
  • The value of useful work done at any given point in a project to give a measure of progress.
  • A situation that affects or influences the outcome of the project expressed in time or cost terms.

Q25. The justification for the investment to be made in a project is documented in the:

  • Cost Breakdown Structure.
  • procurement strategy.
  • business case.
  • Project Management Plan.

Q26. Which one of the following is a responsibility of the project steering group/board?

  • To identify potential problems for the project team to solve.
  • To provide strategic direction and guidance to the sponsor.
  • To manage the project team in all daily activities.
  • To receive and consider daily reports from team members.

Q27. One of the reasons a project life cycle is split into phases is to:

  • facilitate formal go/no-go decision making during the project.
  • balance the costs of work in each phase of project development.
  • mirror the major deployments of resources throughout the project.
  • chunk work into time periods of similar durations.

Q28. Which of the following best describes a project environment?

  • The type of organisation concerned with implementation.
  • The structured method used to control the project.
  • The context within which a project is undertaken.
  • An understanding of the risks involved in the project.

Q29. Which one of the following statements best describes a project?

  • A project is a set of tools and techniques often used when delivering organisational change.
  • A project is the sum of activities needed to remove uncertainty from a unique piece of work.
  • A unique transient endeavour undertaken to achieve a desired outcome.
  • A project is a method of planning work.

Q30. The document that identifies what information needs to be shared, to whom, why, when and how is called the:

  • communication management plan.
  • stakeholder mapping grid.
  • document distribution schedule.
  • responsibility assignment matrix.

Q31. An important aim of a post-project review is to:

  • validate overall progress to date against the budget and schedule.
  • capture learning and document it for future usage.
  • ensure acceptance of all permanent documentation, signed by the sponsor.
  • establish that project benefits have been identified.

Q32. The process that evaluates overall project performance to provide confidence is called:

  • quality assurance.
  • quality planning.
  • quality control.
  • quality audit.

Q33. Which one of the following statements about the project risk register is false?

  • It facilitates the review and monitoring of risks.
  • It facilitates the risk appetite.
  • It facilitates the recording of risk responses.
  • It facilitates the recording of risks.

Q34. Which one of the following statements best defines procurement?

  • A technique to establish the best approach for obtaining the resources for the project.
  • A group of interrelated resources and activities that transform inputs into outputs.
  • The description of the purpose, form and components to support delivery of a product.
  • The process by which products and services required for the project are acquired.

Q35. Once a change has been requested what is the next step in the change control process?

  • Evaluate the change.
  • Advise the sponsor.
  • Update the change log.
  • Update the project plan.

Q36. A Responsibility Assignment Matrix (RAM) can be used to:

  • define the terms of reference of the project manager.
  • define the limits of the project sponsor’s responsibilities.
  • allocate risk management response activities to project personnel.
  • allocate work packages to those responsible for project work.

Q37. An Organisational Breakdown Structure (OBS) is used to identify:

  • the reporting structure and current availability of all individuals in the project.
  • technical ability and line of communication for all individuals in the project.
  • lines of communication and responsibility for all the individual managers in the project.
  • the reporting structure and lines of communication for all individuals in the projects.

Q38. Which one of the following best describes project success criteria?

  • Actively seeking some senior management support.
  • Measures by which the success of the project is judged.
  • Achievement of milestones.
  • A motivated project team.

Q39. Comparative estimating uses:

  • current data from similar projects.
  • historic data from all projects.
  • historic data from similar projects.
  • current data from all projects.

Q40. Which one of the following best describes a project stakeholder?

  • A party who is concerned about the project going ahead.
  • A party with an interest or role in the project or is impacted by the project.
  • A party who has a vested interest in the outcome of the project.
  • A party who has a financial stake in the organisation managing the project.

Q41. The main purpose of the Project Management Plan is to:

  • provide justification for undertaking the project in terms of evaluating the benefit, cost and risk of alternative options.
  • ensure the project sponsor has tight control of the project manager’s activity.
  • document the outcomes of the planning process and provide the reference document for managing the project.
  • document the outcome of the risk, change and configuration management processes.

Q42. Who has ultimate responsibility for project risk?

  • Steering group.
  • Risk owner.
  • Project sponsor.
  • Project manager.

Q43. When a project has completed the handover and closure phase:

  • the project deliverables are ready for commissioning.
  • the project deliverables are ready for handing over to the users.
  • the project documentation must be disposed of.
  • the capability is now in place for the benefits to be realised.

Q44. Which one of the following illustrates why effective project management is beneficial to an organisation?

  • It utilises resources as and when required under direction of a project manager.
  • It advocates employing a consultancy firm which specialises in managing change.
  • It recommends using only highly skilled people in the project team.
  • It ensures that the chief executive is accountable for the achievement of the defined benefits.

Q45. A key aspect of managing a project involves:

  • defining which operational systems to put in place.
  • identifying routine tasks.
  • ensuring ongoing operations are maintained.
  • planning to achieve defined objectives.

Q46. Which one of the following statements best defines teamwork?

  • People working collaboratively towards a common goal.
  • Developing skills that will enhance project performance.
  • Gathering the right people together to work on a project.
  • Establishing vision and direction towards a common purpose.

Q47. A review undertaken to decide whether a project should proceed into its next phase is known as a:

  • gate review.
  • feasibility study.
  • milestone review.
  • evaluation review.

Q48. Which one of the following statements best describes the use of an issue log?

  • A summary of all possible alternative resolutions of an issue.
  • A summary of all the project issues, their analysis and status.
  • A tool to ensure that a process is in place for capturing all issues.
  • A tool to ensure that the issue management process is adhered to.

Q49. The main aim of a project risk management process should be to:

  • identify project risks and then manage them appropriately.
  • identify all project risks and transfer them immediately.
  • identify all the things that are threats or opportunities on a project.
  • satisfy the organisation’s project management process.

Q50. What is a visual representation of a project’s planned activities against a calendar called?

  • A Gantt chart.
  • A critical path network.
  • A product flow diagram.
  • A Pareto chart.

Q51. Configuration management is best described as:

  • control in the implementation of changes to project schedules.
  • an organisation to review proposed changes to the project deliverables.
  • quality control of project deliverables and documentation.
  • creation, maintenance and controlled change of the project deliverables.

Q52. A Cost Breakdown Structure (CBS) shows costs assigned to:

  • individual work packages using the Work Breakdown Structure (WBS).
  • individual resources using the Work Breakdown Structure (WBS).
  • individual resources using the Responsibility Assignment Matrix (RAM).
  • individual deliverables using the Responsibility Assignment Matrix (RAM)

Q53. The accuracy of an estimate should:

  • Decrease as a project progresses through its life cycle.
  • Increase as a project progresses through its life cycle.
  • Stay constant throughout the project life cycle.
  • Vary independently of where the project is in its life cycle.

Q54. Which one of the following best defines a benefit?

  • A positive result of stakeholder management.
  • The successful management of a project.
  • An improvement resulting from project deliverables.
  • The successful delivery of project reports and updates.

Q55. Which one of the following is true for the Project Management Plan (PMP)?

  • The Project Management Plan is developed by the project manager and team and owned by the sponsor.
  • A draft of the Project Management Plan is developed by the sponsor at the same time as the business case.
  • The Project Management Plan is developed by the sponsor and owned by the project manager.
  • The Project Management Plan is developed by the project manager and team and owned by the project manager.

Q56. Who are project team members primarily accountable to?

  • External stakeholders.
  • The end users.
  • The finance director.
  • The project manager.

Q57. The phases of a project life cycle are:

  • Starting, planning, control and closing.
  • Concept, definition, development, handover and closure.
  • Initiation, definition, planning, monitoring and operations.
  • Concept, definition, implementation and operations.

Q58. A portfolio can best be defined as:

  • A group of projects and programmes carried out within an organisation.
  • A group of programmes carried out under the sponsorship of an organisation.
  • A group of projects carried out under the sponsorship of an organisation.
  • A range of products and services offered by an organisation.

Q59. Which one of the following best describes project management?

  • Using APM’s Body of Knowledge 6th edition as a guide to all projects.
  • Employing a project manager who has undertaken similar projects.
  • Utilising team members who can work on a project full time.
  • Application of processes and methods throughout the project life cycle.

Q60. Which structure shows the reporting relationships and communications channels for a project?

  • Work Breakdown Structure.
  • Organisational Breakdown Structure.
  • Product Breakdown Structure.
  • Responsibility assignment structure.

error: Content is protected !!