Tag: Project Management Professional (PMP) Exam Practice

Project Management Professional (PMP) Exam Practice – Question1632

The principal function of a warranty is to______________


A. Provide assurance of the level of quality to be provided
B. Provide a way to assert claims for late payment
C. Provide a way to allow additional time following acceptance to correct deficiencies, without additional costs
D. Ensure that goods purchased fit the purposes for which they are to be used

Correct Answer: A

Explanation:

Explanation:
A warranty is one party’s assurance to the other that goods will meet certain standards of quality, including condition, reliability, description, function, or performance. This assurance may be express or implied.

Project Management Professional (PMP) Exam Practice – Question1631

Buyers use a variety of methods to provide incentives to a seller to complete work early or within certain contractually specified time frames. One such incentive is the use of liquidated damages.
From the seller's perspective, liquidated damages are what form of incentive?


A. Positive
B. Negative
C. Nominal

D. Risk-prone

Correct Answer: B

Explanation:

Explanation:
Liquidated damages are considered negative incentives because they result in a loss of revenue for the seller if it fails to perform rather than a gain in revenue if it performs well.

Project Management Professional (PMP) Exam Practice – Question1630

The primary benefit of contract control procurements is to ensure that______________


A. Buyers conduct performance reviews
B. Payment is made in a timely fashion
C. Disagreements are handled quickly and to everyone's satisfaction
D. Both parties meet contractual obligations and protect their legal rights

Correct Answer: D

Explanation:

Explanation:
Contracts are awarded to obtain goods and services in accordance with the buyer’s stated requirements. Although there are multiple purposes in the control procurements process, ensuring that the seller delivers what is stated in the contract is of paramount
importance.

Project Management Professional (PMP) Exam Practice – Question1629

You are responsible for ensuring that your seller's performance meets contractual requirements. For effective contract control, you should______________


A. Hold a bidders' conference
B. Establish the appropriate contract type
C. Implement the contract change control system
D. Develop a statement of work

Correct Answer: C

Explanation:

Explanation:
Contract change control entails ensuring that contract changes are properly approved and that everyone who needs to know is made aware of such changes.

Project Management Professional (PMP) Exam Practice – Question1627

All the following elements must be evident in a written contract for it to be legally enforceable EXCEPT______________


A. Legal capacity
B. Mutual assent
C. Appropriate form
D. Pricing structure

Correct Answer: D

Explanation:

Explanation:
The following elements must be present for a contract to be legally enforceable: legal capacity, mutual assent, consideration, legality, and an appropriate contract form that follows applicable laws governing businesses.

Project Management Professional (PMP) Exam Practice – Question1626

You plan to award a contract to provide project management training for your company. You decide it is important that any prospective contractor have an association with a major university that awards master's certificates in project management. This is an
example of______________


A. Setting up an independent evaluation
B. Preparing requirements for your statement of work
C. Establishing a weighting system
D. Establishing source selection criteria

Correct Answer: D

Explanation:

Explanation:
The selection criteria are typically included in procurement documents and are then used to rate or score proposals.

Project Management Professional (PMP) Exam Practice – Question1625

Requirements for formal contract acceptance and closure usually are defined in the______________


A. Proposal
B. Statement of work
C. Contract terms and conditions
D. Procurement audit report

Correct Answer: C

Explanation:

Explanation:
The contract terms and conditions typically describe the procedure the buyer will employ to close the contract.

Project Management Professional (PMP) Exam Practice – Question1624

Your company decided to award a contract for project management services on a pharmaceutical research project. Because your company is new to project management and does not understand the full scope of services that may be needed under the contract,
it is most appropriate to award a______________


A. Firm-fixed-price contract
B. Fixed-price-incentive contract
C. Cost-plus-a-percentage-of-cost contract
D. Time-and-materials contract

Correct Answer: D

Explanation:

Explanation:
A time-and-materials contract is a type of contract that provides for the acquisition of supplies or services on the basis of direct labor hours, at specified fixed hourly rates for wages, overhead, general and administrative expenses, and profit; and materials at cost,
including materials-handling costs.

Project Management Professional (PMP) Exam Practice – Question1623

You are working on a new project in your organization. You need to decide how best to staff the project and handle all its resource requirements. Your first step should be to______________


A. Conduct a make-or-buy analysis
B. Conduct a market survey
C. Solicit proposals from sellers using an RFP to determine whether you should outsource the project
D. Review your procurement department's qualified-seller lists and send an RFP to selected sellers

Correct Answer: A

Explanation:

Explanation:
A make-or-buy analysis is a plan procurement management tool and technique used to determine whether a particular product, service, or result can be produced or performed cost effectively by the performing organization or should be contracted out to another
organization. The analysis includes both direct and indirect costs and any administrative costs incurred to manage the contractor.