PMP Business Environment: strategy and project benefits Practice Test 3 — 15 Questions

Question 1

A project manager is managing a construction project that is currently 15% over budget at the midpoint. The sponsor asks the PM to reduce quality testing to save costs. What should the PM do first?

Accepted Answer

Explain the risks of reducing quality and recommend submitting a change request if cost reduction is necessary. Option A is correct because reducing quality without change control and impact analysis is risky and violates PMI principles. Option B is reactive, option C bypasses analysis, option D ignores the issue.

Answer

Ignore the sponsor's request and continue with the current plan

Answer

Agree with the sponsor and reduce testing immediately

Answer

Review the budget and identify other areas to cut costs without affecting quality

Question 2

In an agile project, the team's velocity has dropped across three consecutive sprints. The project manager suspects that technical debt is causing slowdowns. What should the PM do?

Accepted Answer

Facilitate a retrospective to identify impediments and create an action plan. Option D is correct because the PM should facilitate a root cause analysis with the team. Option A blames without understanding, option B may not address root cause, option C escalates without team input.

Answer

Replace the underperforming team members

Answer

Increase the sprint duration to give the team more time

Answer

Report the velocity drop to the sponsor immediately

Question 3

You are the project manager for a portfolio of projects. One project is consistently underperforming and missing milestones. The steering committee asks you to recommend whether to continue or cancel the project. What should you do first?

Accepted Answer

Conduct a benefits review and assess if the project still aligns with organizational strategy. Option B is correct because the PM should evaluate the project's performance against the business case and benefits. Option A is reactive, option C is premature without data, option D is an escalation without analysis.

Answer

Recommend cancelling the project to free up resources for other projects

Answer

Escalate to the sponsor for decision

Answer

Ask the project team to create a recovery plan

Question 4

A key vendor notifies you that they cannot deliver a critical component on time due to a supplier issue. The component is on the critical path. What should the project manager do first?

Accepted Answer

Review the risk register for the identified risk and implement the planned response. Option C is correct because the PM should first assess the impact on the project. Option A escalates without information, option B may be premature, option D ignores the risk.

Answer

Find an alternative vendor and place an order

Answer

Ask the team to work overtime to make up for the delay

Answer

Immediately inform the sponsor and steering committee

Question 5

A project manager is leading a hybrid project. An executive stakeholder bypasses the PM and gives direct orders to the development team. What should the PM do?

Accepted Answer

Have a private conversation with the executive to explain the impact of bypassing the PM and request they communicate through the proper channels. Option A is correct because communication and stakeholder management are key. Option B escalates without conversation, option C ignores the issue, option D may not resolve the root cause.

Answer

Report the executive's behavior to the sponsor

Answer

Update the communications management plan to include reporting requirements

Answer

Tell the team to ignore the executive's orders

Question 6

During a project kickoff, the project manager discovers that the project's business case has not been updated to reflect a recent change in organizational strategy. What should the PM do?

Accepted Answer

Request a meeting with the sponsor to review and update the business case. Option B is correct because the business case must align with strategy; the PM should work with the sponsor to update it. Option A ignores the misalignment, option C is reactive, option D may be too drastic.

Answer

Inform the team of the strategy change and ask them to adjust the project scope

Answer

Proceed with the existing business case since the project was already approved

Answer

Halt the project until the business case is approved again

Question 7

A project manager is overseeing a large-scale agile transformation in a traditional organization. The executive sponsor asks the PM to create a detailed project plan for the entire transformation, including Gantt charts. What should the PM do?

Accepted Answer

Propose a hybrid approach with high-level milestones and iterative planning. Option D is correct because agile transformation requires an adaptive approach; the PM should explain the need for flexibility. Option A may cause resistance, option B is too rigid, option C is not the PM's role to decide alone.

Answer

Refuse to create the plan because agile does not use Gantt charts

Answer

Create the detailed Gantt chart as requested to satisfy the sponsor

Answer

Explain that agile transformation is uncertain and should be approached with adaptive planning, and suggest a high-level roadmap instead

Question 8

A project manager is closing a project and compiling lessons learned. The project delivered its objectives but exceeded the budget by 10%. What should the PM include in the lessons learned?

Accepted Answer

Both the successes and the budget overrun with root causes and recommendations for improvement. Option B is correct because lessons learned must capture both positive and negative outcomes to provide a balanced view for future projects. Including the budget overrun with root causes and recommendations enables continuous improvement, which is a core principle of project management. The PMBOK Guide emphasizes that lessons learned should document what went well and what did not, along with actionable insights.

Answer

Recommendations on how to penalize the team for the budget overrun

Answer

Only the successful aspects to maintain a positive tone

Answer

The budget overrun and reasons, but not the successes as they are not lessons

Question 9

During a project to develop a mobile app, the product owner wants to add a feature that the team believes will increase user engagement but was not in the approved scope. The sprint is already in progress. What should the project manager do?

Accepted Answer

Explain that changes should be added to the product backlog for future sprints after evaluation. Option B is correct because the PM should uphold the sprint goal and manage changes through the product backlog. Option A violates the sprint commitment, option C is premature, option D bypasses the product owner.

Answer

Ask the team to do a quick spike to estimate the effort

Answer

Ask the sponsor for immediate approval to include the feature

Answer

Allow the team to add the feature since it improves the product

Question 10

A project manager is leading a project that has a change request that would affect the critical path. The change request has been approved. Which TWO actions should the PM take next?

Accepted Answer

Update the project management plan to reflect the approved change. Option B and C are correct because after approval, the PM must update the project management plan and communicate the changes. Option A is incomplete, D is not a direct action for this change, E may be part of plan but not immediate.

Answer

Update the lessons learned repository

Answer

Implement the change immediately

Answer

Update the change log only

Question 11

A project manager is managing a project that is part of a program. The program manager asks the PM to provide benefits realization metrics. The project is currently in execution. Which THREE documents should the PM consult to determine the appropriate metrics?

Accepted Answer

Business case. Option A, B, D are correct because the business case defines expected benefits, the benefits management plan defines metrics, and the project charter includes high-level benefits. Option C is not typically for metrics, E is for schedule.

Answer

Risk register

Answer

Project schedule

Question 12

A project manager is conducting a lessons learned workshop at project closure. The team identifies that the project's success was hindered by unclear requirements and lack of stakeholder engagement. Which THREE actions should the PM recommend to improve future projects?

Accepted Answer

Involve stakeholders earlier in the requirements gathering process. Option A, B, D are correct because these address root causes: early stakeholder involvement, clear requirements, and decision documentation. Option C is not a standard recommendation, E is unrelated.

Answer

Increase the budget for future projects

Answer

Reduce the number of meetings to save time

Question 13

You are the project manager for a hybrid software development project. During a sprint review, a key stakeholder requests a new feature that was not in the original scope. The product owner believes it adds significant value. The team estimates it will take two additional sprints. What should you do first?

Accepted Answer

Submit a change request through the Integrated Change Control process. According to PMI, any change to scope must go through the formal change control process. The project manager should first submit a change request to assess impact on schedule, cost, and resources before any decision is made.

Answer

Add the feature to the product backlog and let the team work on it in a future sprint without formal approval

Answer

Ask the team to start working on the feature immediately to satisfy the stakeholder

Answer

Inform the stakeholder that no changes are allowed after the project has started

Question 14

Your organization is undergoing an agile transformation. The current project uses Scrum, but the executive sponsor wants to adopt SAFe to align with enterprise strategy. Several team members resist the change, citing loss of autonomy. As the project manager, what should you do first?

Accepted Answer

Organize a meeting with the team to discuss concerns and explain the benefits of SAFe in alignment with organizational strategy. The correct action is to engage stakeholders and understand their concerns. PMI emphasizes communication and stakeholder engagement to address resistance and facilitate change management.

Answer

Mandate the adoption of SAFe and enforce it through performance reviews

Answer

Delay the transformation until the next fiscal year to avoid conflict

Answer

Escalate to the project sponsor and request that the team be replaced

Question 15

During a project, a new government regulation is enacted that directly affects your project's deliverables. The regulation requires additional testing and documentation, which will increase costs by 10%. What is the first action you should take?

Accepted Answer

Submit a change request to assess and incorporate the new regulation. The first step is to analyze the impact on the project and then submit a change request to formally address the regulatory requirement.

Answer

Immediately implement the required changes to ensure compliance

Answer

Ignore the regulation because it was not part of the original scope

Answer

Update the risk register and inform the sponsor of the impact