Entrepreneurship and project management MCQ pdf

CPM method of network analysis is

1. Ideally suited for linearly extending works

2. Meant essentially for research and development activities.

3. Activity-oriented

4. Used for planning, scheduling and controlling purposes

1. 1 and 2 only
2. 2 and 3 only
3. 3 and 4 only
4. 1 and 4 only 

Answer [Detailed Solution Below]

Option 3 : 3 and 4 only

Explanation:

• Critical Path Method [CPM] have been used for planning scheduling and controlling in the construction project management.
• It is activity oriented method.

Which term refers to a single person having authority to oversee all aspects of a product's production scheduling, inventory, dislocation and sales?

1. Project management
2. Product management
3. Commercial management
4. Venture management

Answer [Detailed Solution Below]

Option 2 : Product management

Explanation:

• Project Management is the process which includes initiating the project, developing a plan, executing the project as per approved plan, monitoring and controlling the project, handing over the output of the project to the client and finally closing the project.
• Product Management is responsible to oversee all the aspects of product's production is set a product vision and strategy that is differentiated and delivers unique value based on customer demand, define what product will deliver and timeline for implementation, provide cross functional leadership, most notably between engineering team, stores, distribution, sales, marketing and support.
• Commercial Management is identification and development of business opportunities and profitable management of projects and contracts from in option to completion.
• Venture management is a discipline that focuses on being both innovative and challenging in the realm of introducing what could be a completely new product or entering a promising new emerging market.
• After the project has been successfully completed, production is undertaken. Product Managers look after the aspects of products production, production scheduling, and inventory requirement of location and sales of the project.

Consider the following phases of project management:

1. Identification

2. Formulation

3. Appraisal

4. Implementation 

Which of the above phases are relevant, sequentially?

1. 1, 2 and 3 only
2. 1, 2 and 4 only
3. 3 and 4 only
4. 1, 2, 3 and 4

Answer [Detailed Solution Below]

Option 4 : 1, 2, 3 and 4

Explanation:

There are 7 stage to project management but there are five stage mainly.

[a] Project identification

[b] Project preparation [project formulation]

[c] Project appraised

[d] Negotiation

[e] Project approval

[f] Project planning

[g] Project implementation

What is an optimizing strategy?

1. Strategy of choosing the best possible solution considering all parameters
2. Strategy of choosing a compromise solution
3. Strategy of choosing the least cost solution
4. Strategy of choosing a solution on the basis of precedents

Answer [Detailed Solution Below]

Option 1 : Strategy of choosing the best possible solution considering all parameters

Explanation:

• Finding an alternative with the most cost-effective or highest achievable performance under the given constraints, by maximizing desired factors and minimizing undesired one.
• In comparison, maximization means trying to attain the highest or maximum result or outcome without regard to cast or expense.

A simple project comprises of two start-to-end parallel paths, each with three activities in series, with no interpath dependencies. The a, m, b data [in days] for each activity are shown in the diagram. Assuming that three activities in series are enough for further computations, what will be the total project duration and its standard deviation?

1. 35 1 / 2 days and 14 / 3 days
2. 34 1 / 2 days and 5 / 2 days
3. 35 1 / 2 days and 13 / 6 days
4. 34 1 / 2 days and 11 / 6 days

Answer [Detailed Solution Below]

Option 4 : 34 1 / 2 days and 11 / 6 days

Explanation:

Here two path – [I] ⇒ 1 – 2 – 4 – 6

[II] ⇒ 1 – 3 – 5 – 6

Calculation of expected time for both path – 

\[{T_e} = \frac{{{T_0} + 4{T_m} + {T_p}}}{6}\]

For I 

\[ \Rightarrow \frac{{2 + 4 \times 3 + 4}}{6} + \frac{{4 + 4 \times 6 + 8}}{6} + \frac{{5 \times 4 \times 8 + 11}}{6}\]

= 3 + 6 + 8

= 17 days

For II 

\[ \Rightarrow \frac{{6 + 4 \times 7 + 8}}{6} + \frac{{12 + 4 \times 12 + 18}}{6} + \frac{{9 + 4 \times 15 + 18}}{6}\]

= 7 + 13 + 14.5

\[ = 34\frac{1}{2}{\rm{\;days}}\]

Hence longest path II so it is critical standard deviation.

\[\delta d = \sqrt {\sum {{\left[ {\frac{{{T_p} - {T_0}}}{6}} \right]}^2}} \]

\[\sigma = \sqrt {{{\left[ {\frac{{8 - 6}}{6}} \right]}^2} + {{\left[ {\frac{{18 - 12}}{6}} \right]}^2} + {{\left[ {\frac{{18 - 9}}{6}} \right]}^2}} \]

\[\sigma = \sqrt {{{\left[ {\frac{1}{3}} \right]}^2} + 1 + {{\left[ {\frac{3}{2}} \right]}^2}} = \sqrt {\frac{1}{9} + 1 + \frac{9}{4}} = \sqrt {\frac{{121}}{{36}}} \]

\[\therefore \;\left[ {\sigma = \frac{{11}}{6}\;days} \right]\]

In a project there are 9 activites; A, B, C, D which are sequential; E. F, G which are seqential; H, K which are sequential, Also E, F, G run parallel to B, C, D; and H. K run parallel to A, B. C. D. Besodes these activity dependencies, it is also needful that B be completed before taking up G; A and H be completed before taking up D and K. How many dummies are to be drawn on the activity network?

1. 5
2. 4
3. 3
4. 2

Answer [Detailed Solution Below]

Option 3 : 3

Explanation:

From the above figure, we can conclude that 3 dummies are to be drawn on the activity network.

Who is responsible for the following activities in a project?

1. Achieving a unity of control over project activities

2. Having an authority to control project matters and disburse funds form the budget

3. Having no actual line of authority over workers

1. Project Expeditor
2. Project Coordinator
3. Matrix Manager
4. Project Manager

Answer [Detailed Solution Below]

Option 2 : Project Coordinator

Explanation:

• The main responsibility of a project coordinator is to ensure the project is running smoothly, on time and to budget.
• A Project Coordinator carries the responsibility of partially managing the project under the supervision of other managers.
• A Project Coordinator is usually given some sort of limited authority to make decision. He has the financial powers but lacks in authority over the workers.
• Duties typically include planning certain parts of the project, monitoring its progress, coordinating meetings and overseeing members of the project team.
• For larger projects, the Project Manager may have some Project Coordinators reporting to them.

Consider the following statements regarding project management:

1. It is the process of attaining project objectives in a stipulated time to -produce quantified and qualified deliverables 

2. It is the art of bringing together the responsibilities, resources and people necessary to accomplish the business goals and objectives within the specified time limitations and within the financial grant

Which of the above statements is / are correct?

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

Answer [Detailed Solution Below]

Option 3 : Both 1 and 2

Explanation:

• Project management is the practice of initiating, planning, execute, controlling and closing the work of team to achieve specific goals and meet specific success criteria at the specific time.
• The primary challenge of project management is to achieve all of the project goals within the given constraints.
• Project management is the art of bringing together the responsibilities, resources and people necessary to accomplish the business goals and objectives within the specified time limitations and within the financial grant

Project management audit consists of which of the following?

1. Project work-breakdown structure verification and the relevance.

2. Risk identification, cost, levels and security.

3. Measurements of risk impacts.

Select the correct answer using the code given below:

1. 1 and 2 only
2. 2 and 3 only
3. 1, 2 and 3
4. 1 and 3 only

Answer [Detailed Solution Below]

Option 3 : 1, 2 and 3

Explanation:

Project audit

• The project audit is the means to provide that assurance and enables the sponsor to have confidence that the governance is working and that the project is being managed as intended.
• There is currently a considerable amount of information relating to the assurance of projects and programs, and why it is important.
• This guide seeks to demonstrate how to plan and undertake a comprehensive audit of a project, thereby providing that assurance.
• The guide seeks to explain the role of an audit, how it could be planned and undertaken, the degrees of assurance that can be given, and how project audits can be aligned to organizational governance.
• Although the guide acknowledges the need for project audits to be integrated with the works of other assurance providers [particularly technical and quality audits] a project audit is a stand-alone process aimed at the three main roles involved in a project.
• The three main roles involved in project audits are:
  1. Organisation board/audit committee/ sponsor/other stakeholders = Those who schedule the project audit and receive the audit findings
  2. Project team = Those whose project is being audited, with whom the auditors interact
  3. Project auditor[s] = Those who undertake the audit, and report its findings and make recommendations

Principles of project audit

• A Guide to Integrated Assurance identifies the principles governing project audits, which are those established for the provision of assurance generally.
• Project audit should be:
  1. independent, and supported in this by the organization board;
  2. accountable within a governance and reporting system;
  3. planned and coordinated as part of the organization’s management system;
  4. proportionate to risk potential and the assurance needs of stakeholders;
  5. risk-based, against an independent risk evaluation;
  6. able to allow the impact of identified weaknesses to be reported and addressed, by follow-up and escalation.

Direction: It consists of two statements, one labelled as ‘Statement [I]’ and the others as ‘Statement [II]’. You are to examine these two statements carefully and select the answer using the codes given below:

Statement [I]: Project management is essentially the process to plan its implementation and to pre-determine the period-wise need of resources including funds and personnel, given the choice of total duration and quality standards.

Statement [II]: Of the four dimensions [not denying that there can be some more] of a project; viz., scope, cost, time and quality, only any two can by pre-assigned; others have to abide by these two prescriptions.

1. Both Statement [I] and Statement [II] individually true and Statement [II] is the correct explanation of Statement [I]
2. Both statement [I] and Statement [II] are individually true, but Statement [II] is not the correct explanation of Statement [I]
3. Statement [I] is true, but Statement [II] is false
4. Statement [I] is false, but Statement [II] is true

Answer [Detailed Solution Below]

Option 1 : Both Statement [I] and Statement [II] individually true and Statement [II] is the correct explanation of Statement [I]

Explanation:

• Project management is the application of processes, methods, skills, knowledge and experience to achieve specific project objectives according to the project acceptance criteria within agreed parameters. Project management has final deliverables that are constrained to a finite timescale and budget.  
• Project management is a process that includes planning, putting the project plan into action, and measuring progress and performance.
• A key factor that distinguishes project management from just 'management' is that it has this final deliverable and a finite timespan, unlike management which is an ongoing process.
• Scope, time, and quality can be pre-assigned thereafter cost can be determined.

In principle, the network should not be made complex. No control system, for that matter, can operate unless it is kept simple. This principle is called

1. CPM
2. PERT
3. KISS
4. GERT

Answer [Detailed Solution Below]

Option 3 : KISS

Explanation:

KISS — "Keep it simple stupid" is invented by U.S. Navy in 1960.

Principle: It States that most systems work best if they are kept simple rather than made complicated.

It adopted where project scope is very large and complex.

Therefore simplicity should be key goal in project management and complexity should be avoided

Albert Einstein: "Everything should be made as simple as possible, but not simpler." This means that one should simplify the design of a product and success is achieved when design is at its maximum simplicity.

CPM — Critical path method [Minimum duration of the project]

PERT — Event oriented method [Program evaluation and review technique]