PMP Business Environment: strategy and project benefits Practice Test 4 — 15 Questions

Question 1

Your project is 40% complete and running 15% over budget due to unforeseen technical challenges. The project sponsor suggests reducing scope by removing non-essential features to meet the budget. What should you do?

Accepted Answer

Analyze the impact of the proposed reduction and submit a change request to the CCB. The project manager should follow the formal change control process to evaluate the impact of reducing scope and obtain approval from the change control board (CCB) before making changes.

Answer

Update the project charter to reflect the new scope without further approval

Answer

Reject the sponsor's suggestion because scope reduction always leads to project failure

Answer

Agree with the sponsor and immediately instruct the team to stop work on non-essential features

Question 2

In a large program using a hybrid approach, two senior developers have a conflict over the technical design of a critical component. The disagreement is causing delays and affecting team morale. As the program manager, what is the best first step?

Accepted Answer

Facilitate a meeting with both developers to discuss the pros and cons of each design and reach a consensus. The PM should facilitate a collaborative resolution by engaging both parties in a constructive discussion. This aligns with PMI's emphasis on conflict resolution and stakeholder engagement.

Answer

Make a decision yourself based on your technical expertise to resolve the conflict quickly

Answer

Escalate the issue to the project sponsor for resolution

Answer

Replace one of the developers with a contractor to eliminate the conflict

Question 3

Your project is using Scrum. During the daily standup, a team member mentions that a key vendor will be unable to deliver a critical component on time, which will delay the next sprint. What is the best action to take?

Accepted Answer

Assess the impact on the sprint goal and inform the product owner and stakeholders. The project manager should first assess the impact on the sprint and project, then communicate the issue to relevant stakeholders and update the risk register.

Answer

Ask the team to work overtime to compensate for the delay

Answer

Escalate to the vendor's management immediately

Answer

Immediately remove the component from the sprint backlog and continue with other work

Question 4

You are managing a project in a highly regulated industry. An audit reveals that your project is not fully compliant with a new data privacy regulation. The regulation requires specific data handling procedures that your team has not implemented. What should you do first?

Accepted Answer

Submit a change request to incorporate the regulatory requirements and assess impact on schedule and budget. The first step is to analyze the gap and submit a change request to implement the required procedures. Compliance is non-negotiable, but changes must follow the formal process.

Answer

Ignore the audit findings because the project is almost complete

Answer

Immediately implement the required procedures to avoid legal penalties

Answer

Update the risk register and continue as planned until the regulation is enforced

Question 5

During a project, an executive stakeholder bypasses you and directly assigns work to your team members. This has caused confusion and rework. What is the best action for you to take?

Accepted Answer

Speak directly to the executive and explain the impact of bypassing the project manager. The project manager should communicate with the executive to clarify the proper communication channels and reinforce the project management plan. This aligns with PMI's emphasis on stakeholder engagement and communication.

Answer

Instruct the team to ignore any direct requests from the executive

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Escalate the issue to the sponsor without talking to the executive first

Answer

Update the communications management plan to prohibit direct stakeholder-to-team communication

Question 6

Your agile project has experienced a drop in sprint velocity for three consecutive sprints. The team cites increasing technical debt and unclear requirements. As the project manager, what is the most effective first step?

Accepted Answer

Conduct a root cause analysis in a retrospective with the team. The PM should facilitate a retrospective to identify the root causes and collaboratively develop action items. This aligns with agile principles of continuous improvement.

Answer

Reduce the sprint backlog to a manageable size

Answer

Increase the sprint duration to give the team more time

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Replace the underperforming team members

Question 7

You are managing a portfolio of projects. One project has a high probability of missing its deadline, which will impact the organization's strategic goals. What should you do first?

Accepted Answer

Analyze the impact on strategic goals and communicate with the sponsor and steering committee. The portfolio manager should analyze the situation and communicate the issue to stakeholders to align on corrective actions or reprioritization.

Answer

Add more resources to the project to try to meet the deadline

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Ignore the issue because it is only one project in the portfolio

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Immediately cancel the project to reallocate resources

Question 8

Your project is using a hybrid approach. The business case is no longer valid due to a change in market conditions, but the sponsor insists on continuing because significant resources have already been spent. What is the best action?

Accepted Answer

Present the updated business case and recommend a formal decision review with the steering committee. The project manager should present the updated business case and recommend a formal review to decide whether to continue or terminate. Sunk costs should not drive decisions.

Answer

Increase the project budget to improve the business case

Answer

Stop the project immediately to prevent further losses

Answer

Continue the project as planned to avoid wasting invested resources

Question 9

During a project, a risk event that was identified in the risk register occurs. The risk response plan had a mitigation strategy, but it is not fully effective. What should you do first?

Accepted Answer

Implement the contingency plan or develop a workaround and update the risk register. The project manager should implement the contingency plan or develop a workaround, then update the risk register and communicate with stakeholders.

Answer

Notify the sponsor and request additional time and budget

Answer

Ignore the risk because the mitigation strategy was already implemented

Answer

Escalate the risk to the steering committee for resolution

Question 10

You are the project manager for a large infrastructure project. The project is in the execution phase when a key vendor notifies you that they will be unable to deliver a critical component on time due to a supply chain disruption. Which TWO actions should you take?

Accepted Answer

Assess the impact on the project schedule and budget. The correct actions are to assess the impact on the project schedule and budget, and to evaluate alternative vendors or solutions to mitigate the delay. Both are proactive steps aligned with PMI's risk management practices.

Answer

Ignore the issue because the vendor will likely resolve it

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Ask the team to work overtime to compensate for the delay

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Immediately terminate the contract with the vendor and hire a new one

Question 11

Your organization is implementing a new project portfolio management (PPM) system. The PMO director wants to ensure that projects are aligned with strategic objectives. Which THREE techniques would be most effective for achieving strategic alignment?

Accepted Answer

Score and prioritize projects based on strategic value. Strategic alignment is achieved by evaluating projects against strategic criteria, scoring and prioritizing them, and regularly reviewing the portfolio. These three actions ensure ongoing alignment.

Answer

Require all projects to use the same project management methodology

Answer

Assign the most experienced project managers to all projects

Question 12

You are the project manager for a software development project using Scrum. During the sprint, the product owner requests a change that would significantly increase the value of the product but also expands scope. Which TWO actions should you take?

Accepted Answer

Work with the product owner to prioritize the change for a future sprint. In Scrum, the product owner can change the backlog, but the project manager should first assess the impact on the current sprint and, if accepted, ensure the change is added after the current sprint unless it is an emergency. The correct actions are to assess impact and work with the product owner to prioritize the change for a future sprint.

Answer

Add the change to the current sprint immediately to maximize value

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Reject the change because it was not in the original plan

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Escalate to the project sponsor for approval

Question 13

You are a project manager overseeing a 12-month ERP implementation. During sprint 6 of 20, the product owner informs you that a key stakeholder wants to add a new reporting module that was not in the original scope. The team estimates this would add 3 weeks to the schedule. What should you do FIRST?

Accepted Answer

Submit a change request through the Integrated Change Control process and assess the impact on scope, schedule, and cost. Option C is correct because PMI requires all scope changes to go through the Integrated Change Control process. The PM must evaluate the impact and obtain approval before any work begins. Option A is wrong because implementing the change without approval bypasses change control. Option B is wrong because refusing outright without assessing impact is not the correct approach. Option D is wrong because telling the team to start work immediately violates the change control process.

Answer

Ask the team to begin work on the module immediately to accommodate the stakeholder

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Inform the stakeholder that no changes can be made once the project has started

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Add the requirement to the product backlog and let the team address it in a future sprint without formal approval

Question 14

Your construction project is running 15% over budget at the midpoint. The sponsor asks you to cut costs by reducing quality inspections on concrete pours. What should you do FIRST?

Accepted Answer

Analyze the impact of reducing inspections on quality and risk, then discuss alternatives with the sponsor. Option B is correct because the PM should analyze the impact of reducing inspections on quality and risk, then communicate to the sponsor and follow change control. Option A is wrong because cost cutting may not be the only option and quality reductions could jeopardize compliance. Option C is wrong as it bypasses analysis and change control. Option D is wrong because stopping work is premature without exploring other options.

Answer

Immediately reduce inspections as requested to stay on budget

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Refuse the request and stop all cost-cutting measures

Answer

Agree to reduce inspections but document it as a decision

Question 15

You are the project manager for a government IT project. Midway through, a new regulation is enacted that requires additional data privacy controls. The team estimates this will add 4 weeks to the schedule and increase costs by 10%. What should you do FIRST?

Accepted Answer

Submit a change request to the change control board to incorporate the required changes. Option A is correct because the new regulation is a compliance requirement that must be addressed. The PM should assess the impact and submit a change request through the change control process. Option B is wrong because ignoring the regulation could result in legal penalties. Option C is wrong because the PM should not implement changes without approval. Option D is wrong because stopping the project is premature before exploring options.

Answer

Instruct the team to start implementing the new controls immediately

Answer

Ignore the regulation until the project is complete to avoid delays

Answer

Recommend stopping the project until the regulation is clarified