Tag: Project Management Professional (PMP) Exam Practice

Project Management Professional (PMP) Exam Practice – Question1652

You are responsible for a project in your organization that has multiple internal customers.
Because many people in your organization are interested in this project, you decide to prepare a stakeholder management strategy. Before preparing this strategy, you should______________


A. Conduct a stakeholder analysis to assess information needs
B. Determine a production schedule to show when each stakeholder needs each type of information produced
C. Determine the potential impact that each stakeholder may generate
D. Prioritize each stakeholder's level of interest and influence

Correct Answer: A

Explanation:

Explanation:
Stakeholder analysis is used to analyze the information needs of the stakeholders and to determine the sources for meeting those needs. It helps to determine whose interests should be taken into account throughout the project.

Project Management Professional (PMP) Exam Practice – Question1651

Analyzing stakeholders is a part of the identify stakeholders process. Common approaches for analyzing stakeholders in a qualitative manner includes all the following two-axis grids, EXCEPT______________


A. Comparing power and influence
B. Comparing power and interest
C. Comparing influence and location
D. Comparing influence and impact

Correct Answer: C

Explanation:

Explanation:
Identifying and analyzing the stakeholders helps to classify them better for developing a strategy to help manage them and their expectations throughout the project. The most common comparison elements are: power, influence, interest, and impact. The location
of the person may have an impact on one of the other measures, but it is not easily quantifiable on a low, medium, high, type scale.

Project Management Professional (PMP) Exam Practice – Question1650

You are managing a project with team members located at customer sites on three different continents. You have a number of stakeholders on your project, and most of them are located outside of the corporate office. Who should be responsible for stakeholder
management?


A. A specific team member in each of the three locations
B. You, because you are the project manager
C. The project sponsor
D. A core team including you, as the project manager, and three representatives from the three different locations

Correct Answer: B

Explanation:

Explanation:
Stakeholder management refers to any action taken by the project manager or project team to satisfy the needs of and to resolve issues with project stakeholders. The ability of the project manager to correctly identify and manage stakeholders appropriately can
mean the difference between project success or failure.

Project Management Professional (PMP) Exam Practice – Question1649

During your project, you will have a number of different types of meetings. Some will be informational, others will be key updates, and some will be for decision-making purposes. While different attendees will attend each meeting, a best practice to follow is to:


A. Group stakeholders into categories to determine which ones should attend each meeting
B. Invite those stakeholders who have a high level of interest in your project to attend each meeting
C. Be sensitive to the fact that stakeholders often have very different objectives
D. Recognize that roles and responsibilities may overlap but practice a policy of 'no surprises' and inform your stakeholders about any upcoming meetings

Correct Answer: C

Explanation:

Explanation:
A project stakeholder is an individual, group, or organization that is actively involved in the project or have interests that may be affected, either positively or negatively, as a result of the performance or completion of the project. Stakeholders also may exert
influence on the project and its results. Managing stakeholder expectations is difficult since stakeholders often have different or conflicting objectives.

Project Management Professional (PMP) Exam Practice – Question1648

Assume that your company has a cost-plus-fixed-fee contract. The contract value is $110,000, which consists of $100,000 of estimated costs with a 10-percent fixed fee. Assume that your company completes the work but only incurs $80,000 in actual cost. What
is the total cost to the project?


A. $80,000
B. $90,000
C. $10,0000
D. $125,000

Correct Answer: B

Explanation:

Explanation:
In this situation the fixed-fee of $10,000 does not change but now represents a seller profit of 12.5 percent on incurred costs. This means that the total cost to the project is $90,000.

Project Management Professional (PMP) Exam Practice – Question1647

Which of the following types of contracts has the least risk to the seller?


A. Firm-fixed-price
B. Cost-plus-fixed-fee
C. Cost-plus-award-fee
D. Fixed-price-incentive fee

Correct Answer: B

Explanation:

Explanation:
On a firm-fixed-price contract, the seller absorbs 100 percent of the risks; while on a cost-type contract, the buyer carries the most risk. Cost-plus-fixed-fee contracts have less risk to sellers than cost-plus-award-fee or cost-plus-incentive-fee contracts because
the fee is fixed based on costs, so the seller is guaranteed a certain level of profit.

Project Management Professional (PMP) Exam Practice – Question1646

It is critical during the proposal preparation stage that______________


A. The negotiation strategy is determined
B. A change management strategy is developed
C. Roles and responsibilities for the ultimate project are determined
D. Contract terms and conditions are reviewed before the proposal is submitted to the client

Correct Answer: D

Explanation:

Explanation:
The contracts (legal) representative is responsible for the preparation of the contract portion of the proposal. Generally, contracts with the legal department are handed through or in coordination with the proposal group. Before the proposal is submitted to the

client, contract terms and conditions should be reviewed and approved.

Project Management Professional (PMP) Exam Practice – Question1645

Contract negotiations are NOT required when______________


A. A company uses sealed bids
B. There is a sole source procurement
C. A competitive range is established
D. A two-step process is used

Correct Answer: A

Explanation:

Explanation:
When using the sealed bid method, competitive market forces determine the price, and the award goes to the lowest bidder, provided all other terms and conditions of the contract are met.

Project Management Professional (PMP) Exam Practice – Question1644

During contract negotiations on large contracts, the negotiation process focuses on many key issues, with price being one of them. Separate negotiations can be made on price, quantity, quality, and timing, which can significantly lengthen the process. The
negotiation process can be shortened, however, provided that______________


A. Planning is done for negotiations
B. Expertise of the project management staff in the procurement process is at a high level
C. A request for proposal is used rather than a request for quotation
D. There is integrity in the relationship and prior history with the vendor

Correct Answer: D

Explanation:

Explanation:
When people know and trust one another, and in particular have worked with each other before, the negotiation process can be significantly shortened. Three major factors of negotiation should be followed: compromise ability, adaptability, and good faith.

Project Management Professional (PMP) Exam Practice – Question1643

On large contracts, the contract administrator typically has a need to resolve ambiguity in the clauses that govern work performance and other issues. Assume that on your contract there is an order of precedence clause. This means that______________


A. Inconsistencies in the solicitation of the contract shall be resolved in a given order of procedure
B. An alternative dispute resolution process is in place that shall be followed to resolve any conflicts
C. Any ambiguities are generally interpreted against the party who drafted the document
D. Undefinitized contractual actions cannot be authorized

Correct Answer: A

Explanation:

Explanation:
The order of precedence specifies that any inconsistency in the contract shall be resolved in a given order. This avoids confusion and debate, which could lead to litigation.