BAM 540 MCQs

51. The two main challenges for virtual teams include ______________.

a. maintaining autonomy

b. automating monotony

c. building trust

d. the bullwhip effect

52. Virtual teams are often slowed down by difficulty with ______________.

a. superordinate goals

b. task reliance

c. punctuated equilibrium

d. communication

53. Project penalty clauses that initiate at mutually agreed-on points in the project’s

development and implementation are ______________.

a. liquidated damages

b. milestone adjustments

c. contingency clauses

d. penalty points

54. The firm set aside a little extra money just in case an unforeseen element of cost pushed the

project beyond what they had budgeted. This extra money is called a(n) ______________.

a. rainy day fund

b. contingency reserve

c. escalation clause

d. sinking fund

55. The mouse executive board meeting was drawing to a conclusion; the only way they would be able to detect the presence of the cat was to tie a bell around its tail. Under their risk management identification scheme, this would fall under ______________ risk.

a. commercial

b. execution

c. financial

d. technical

56. A method for conducting risk factor identification that consolidates the judgments of

isolated, anonymous respondents is _____________.

a. a brainstorming meeting

b. the Delphi method

c. past history

d. multiple assessments

57. A method for conducting risk factor identification that generates ideas but doesn’t focus on

decision-making is ______________.

a. a brainstorming meetingb. the Delphi methodc. past historyd. multiple assessments

58. The consequences of failure categories of cost, schedule reliability and performance were

believed to be 0.2, 0.6, 0.5 and 0.7. What is the overall consequence of failure?

a. 0.2

b. 0.3

c. 0.4

d. 0.5

59. Input is received from an organization’s management to create a project budget in

______________ budgeting.

a. zero-based

b. top-down

c. bottom-up

d. activity-based

60. An advantage of top-down budgeting is ______________.

a. that top management estimates of project costs are often quite accurate, at least in

aggregate terms.

b. an elimination of the friction between top and lower levels in the competition for

budget money.

c. that projects are no longer a zero-sum game among lower level managers

d. top management budgets, by definition, cannot experience overruns

61. A budget that is created by starting with the work breakdown structure, determining costs for

each work package and then adding these costs together is ______________ budgeting.

a. zero-basedb. top-downc. bottom-upd. activity-based

62. When properly performed, bottom-up budgeting has the disadvantage of _____________.

a. a lack of detail needed in project plans

b. a lack of coordination among project managers and functional department heads

c. being a hindrance to top managers when prioritizing projects that are competing for

the same scarce resources

d. a reduction of top management’s control of the budget process to one of oversight

63. What learning rate is being demonstrated if the first unit takes 15 hours and the third unit

takes 14 hours to complete?

a. greater than or equal to 97 percent

b. less than 97 percent but greater than or equal to 95 percent

c. less than 95 percent but greater than or equal to 93 percent

d. less than 93 percent

64. It took 80 hours of analysis to complete the first phase, but the second phase was done in

74 hours. If this learning rate continues, then the 8th analysis should take a mere

____________ hours and ____________ minutes, give or take.

a. 63; 20

b. 68; 30

c. 57; 15

d. 52; 45

65. Which of these indirect costs is typically classified as an overhead cost?

a. advertising

b. shipping

c. sales commissions

d. taxes

66. These can be located by doing a backward pass through a network.

a. critical paths

b. merge activities

c. successors

d. burst activities

67. An activity with two or more immediate predecessors is a(n) _______________.

a. merge activity

b. burst activity

c. float activity

d. event

68. An activity has an optimistic time estimate of 7 days, a most likely estimate of 12 days and

a pessimistic estimate of 20 days. What is the expected standard deviation of the activity?

a. between 2 and 3

b. between 3 and 4

c. between 4 and 5

d. between 5 and 6

69. Activity Z has estimates a=5, b=10, m=7; activity X has estimates a=4, b=11, m=6; and

activity Y has estimates a=3, b=12, m=8. Which of the following statements is most

accurate?

a. Activity X is longer than Activity Y

b. Activity X has a higher standard deviation than Activity Z

c. Activity Z is shorter than Activity Y

d. Activity Y has a smaller variance than Activity Z

70. There’s an old saying, “The job is not finished until the paperwork is done.” From an activity

network standpoint, this does not necessarily mean that the paperwork can’t begin until the

last non paperwork activity is completed. It might be possible to work on some paperwork as

early activities are completed. In order to depict this in an activity network, ______________.

a. hammock activities could be drawn

b. subroutines could be added

c. shortcuts can be added to the network

d. laddering could be used to redraw the network

71. One approach to reducing project length would be to ______________.

a. convert parallel paths to be serial

b. convert merge activities to burst activities

c. use hammock activities in place of multiple activities

d. eliminate tasks on the critical path

72. A project’s duration can be reduced by ______________.

a. shortening the duration of critical path tasks

b. adding tasks to the critical path

c. adding shorter routes around the critical path

d. completing the backward pass first

73. A basic Gantt chart _____________.

a. clearly displays early and late start and finish times for all activities

b. cannot be used to track the project’s progress

c. permits scheduling resources well before they are needed

d. shows dummy activities to preserve network logic

74. If an activity’s cost is plotted against its duration on axes with zeros at the origin, the slope

of the line is _____________.

a. positive because it costs more to finish an activity more quickly

b. negative because a shorter activity costs less than a longer one

c. negative because it costs more to finish an activity more quickly

d. positive because a longer activity costs more than a shorter one

75. An activity on arrow network _____________.

a. cannot have more arrows than nodes

b. cannot have more nodes than arrows

c. has one more node than arrows

d. has one more arrow than nodes