Page 315 - Project+

Appendix

Answers to Review Questions

Chapter 1: Initiating the Project

1. C, E. A project creates a unique product, service, or result and has defined start and
finish dates. Projects must have resources in order to bring about their results, and
they must meet the quality standards outlined in the project plan. Interrelated

activities are not projects because they don’t meet the criteria for a project. Project
management processes are a means to manage projects, and processes used to
generate profits or increase market share do not fit the definition of a project.
Processes are typically ongoing; projects start and stop.

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2. B. The Project Management Institute (PMI ) is the leading professional project
management association, with more than 700,000 members worldwide.

3. D. A program is a group of related projects that can benefit from coordinated
management. Life cycles are the various stages a project goes through, and process
groups consist of Initiating, Planning, Executing, Monitoring and Controlling, and
Closing.

4. A, C. Portfolios consist of programs, subportfolios, and independent projects that
are not necessarily related to one another. An organization could have any number

of portfolios.

5. B. Project managers can spend up to 90 percent of their time communicating. The
other skills listed here are important as well, but the clue in this question is the 90
percent figure that relates to the amount of time project managers may spend
communicating.

6. A. A request to develop a product for use by an internal department is a business

need. Market demands are driven by the needs of the market, legal requirements
come about because of rules or regulations that must be complied with, and
technological advances are because of improvements in expertise or equipment.

7. B, E. A matrix organization can be structured as a strong, weak, or balanced matrix.
Employees are assigned to projects by their functional managers, and the project
tasks are assigned to them by the project manager. The project manager has the
majority of power in a projectized organization.

8. A. A projectized organization is designed around project work, and project

managers have the most authority in this type of structure. Project managers have
the least amount of authority in a functional organization; they have some authority
in a balanced matrix and a little more authority in a strong matrix, but not as much

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