Project Management Professional (PMP) Exam Practice – Question1807

You are leading a team to review and improve the project selection and prioritization method. You know that the two most important questions to answer are "can we do the project?" (feasibility study) and "should we do the project?" (cost-benefit analysis). The
team is considering many different management concerns, including financial return, market share, and public perception.
The most important criterion for building a project selection model is______________


A.
Risks
B. Realism
C. Ease of use
D. Benefits realization

Correct Answer: B

Explanation:

Explanation:
A project selection model should reflect the objectives of the company and its managers; consider the realities of the organization’s limitations on facilities, capital, and personnel; and include factors for risk–the technical risks of performance, cost, and time as
well as the market risk of customer rejection.