Chapter 4: Project Integration Management
True / False
1. In project integration management, directing and managing project execution involves carrying out the project
management plan by performing the activities included in it.
a.
True
b.
False
True
1
Difficulty: Easy
p.138
INFO.SCHW.14.21 – LO: 4-1
United States – BUSPROG: Technology
What Is Project Integration Management?
Bloom’s: Comprehension
2. Interface management involves identifying and managing the points of interaction between various elements of a
project.
a.
True
b.
False
False
between various elements of a project.
1
Difficulty: Easy
p.140
INFO.SCHW.14.21 – LO: 4-1
United States – BUSPROG: Technology
What Is Project Integration Management?
Bloom’s: Comprehension
3. The number of interfaces in a single project is limited, and does not depend on the number of people involved in the
project.
a.
True
b.
False
False
1
p.140
4. Project integration management must occur just within the context of a particular project.
a.
True
b.
False
False
1
Difficulty: Moderate
p.141
United States – BUSPROG: Technology
Bloom’s: Knowledge
5. A SWOT analysis, being a linear process, cannot be performed using the nonlinear mind mapping technique.
a.
True
b.
False
False
technique that uses branches radiating from a core idea to structure thoughts and ideas.
1
Difficulty: Easy
p.142
INFO.SCHW.14.22 – LO: 4-2
United States – BUSPROG: Analytic
Bloom’s: Knowledge
6. An organization’s information technology project selection process should guide the strategic plan.
a.
True
b.
False
False
1
p.144
INFO.SCHW.14.21 – LO: 4-1
What Is Project Integration Management?
Bloom’s: Comprehension
7. Information systems can help an organization support a strategy of being a low-cost producer.
a.
True
b.
False
True
1
Difficulty: Moderate
p.145
INFO.SCHW.14.22 – LO: 4-2
United States – BUSPROG: Technology
Strategic Planning And Project Selection
Bloom’s: Knowledge
8. Projects that address broad organizational needs are likely to fail.
a.
True
b.
False
False
1
Difficulty: Moderate
p.146
INFO.SCHW.14.23 – LO: 4-3
United States – BUSPROG: Technology
Methods for Selecting Projects
Bloom’s: Comprehension
9. As projects progress, the organization must reevaluate the need, funding, and will for each project to determine if the
project should be continued, redefined, or terminated.
a.
True
b.
False
True
for each project to determine if it should be continued, redefined, or terminated.
1
Difficulty: Easy
INFO.SCHW.14.23 – LO: 4-3
United States – BUSPROG: Technology
Strategic Planning And Project Selection
Bloom’s: Knowledge
10. Opportunities and directives are essentially the same thing.
a.
True
b.
False
False
requirements imposed by management, government, or some external influence.
1
Difficulty: Moderate
p.147
United States – BUSPROG: Technology
Methods for Selecting Projects
Bloom’s: Comprehension
11. Projects that arise as a result of problems and directives must be resolved quickly to avoid hurting an organization’s
business.
a.
True
b.
False
True
1
Difficulty: Moderate
p.147
INFO.SCHW.14.23 – LO: 4-3
United States – BUSPROG: Technology
Methods for Selecting Projects
Bloom’s: Comprehension
12. The organization should complete low-priority projects before high-priority ones, if the low-priority ones take less
time.
a.
True
b.
False
False
1
Difficulty: Moderate
Methods for Selecting Projects
Bloom’s: Comprehension
13. An organization should consider only projects with a negative NPV if financial value is a key criterion for project
selection.
a.
True
b.
False
False
1
Difficulty: Moderate
p.148
INFO.SCHW.14.23 – LO: 4-3
United States – BUSPROG: Technology
Methods for Selecting Projects
Bloom’s: Comprehension
14. NPV analysis is a method for making equal comparisons between cash flows for multi-year projects.
a.
True
b.
False
True
multi-year projects.
1
Difficulty: Moderate
p.149
INFO.SCHW.14.23 – LO: 4-3
United States – BUSPROG: Technology
Methods for Selecting Projects
Bloom’s: Knowledge
15. An annual discount factor is a multiplier for each year based on the discount rate and year.
a.
True
b.
False
True
and year.
1
Difficulty: Moderate
INFO.SCHW.14.23 – LO: 4-3
INFO.SCHW.14.23 – LO: 4-3
United States – BUSPROG: Technology
Methods for Selecting Projects
Bloom’s: Comprehension
16. The ROI is always positive.
a.
True
b.
False
False
Feedback: The ROI is always a percentage. It can be positive or negative.
1
Difficulty: Moderate
p.151
INFO.SCHW.14.23 – LO: 4-3
United States – BUSPROG: Technology
Methods for Selecting Projects
Bloom’s: Knowledge
17. Payback period is the amount of time it will take to recoup, in the form of net cash inflows, the total dollars invested in
a project.
a.
True
b.
False
True
1
Difficulty: Moderate
p.151
INFO.SCHW.14.23 – LO: 4-3
United States – BUSPROG: Technology
Methods for Selecting Projects
Bloom’s: Knowledge
18. A project charter typically does not authorize the project manager to use organizational resources to complete the
project.
a.
True
b.
False
False
1
Difficulty: Moderate
INFO.SCHW.14.24 – LO: 4-4
Methods for Selecting Projects
Bloom’s: Knowledge
19. Some organizations initiate projects using a contract in place of a project charter.
a.
True
b.
False
True
letter of agreement, while others use much longer documents or formal contracts.
1
Difficulty: Easy
p.155
United States – BUSPROG: Technology
Developing A Project Charter
Bloom’s: Knowledge
20. Many projects fail because of unclear requirements and expectations, so starting with a payback analysis makes a lot
of sense.
a.
True
b.
False
False
1
Difficulty: Moderate
p.156
INFO.SCHW.14.24 – LO: 4-4
United States – BUSPROG: Technology
Developing A Project Charter
Bloom’s: Comprehension
21. The introduction or overview of a project must only include a list of definitions and acronyms.
a.
True
b.
False
False
1
p.158-159
INFO.SCHW.14.25 – LO: 4-5
Developing A Project Charter
Bloom’s: Knowledge
22. A Gantt chart is the same as a project management plan.
a.
True
b.
False
23. It is necessary that IT project managers have prior technical experience in creating and managing IT products.
a.
True
b.
False
False
Difficulty: Easy
p.164
INFO.SCHW.14.26 – LO: 4-6
United States – BUSPROG: Technology
Directing And Managing Project Work
Bloom’s: Comprehension
24. Corrective actions reduce the probability of negative consequences associated with project risks, while preventive
actions should result in improvements in project performance.
a.
True
b.
False
False
1
Difficulty: Moderate
p.167
United States – BUSPROG: Technology
United States – BUSPROG: Technology
Developing A Project Management Plan
Bloom’s: Knowledge
25. Change requests are always made in writing.
a.
True
b.
False
True
can be oral or written, formal or informal.
1
Difficulty: Easy
p.168
INFO.SCHW.14.28 – LO: 4-8
Performing Integrated Change Control
Bloom’s: Comprehension
26. Organizational process asset updates are an important output of the closing process of a project.
a.
True
b.
False
True
1
Difficulty: Easy
p.172
INFO.SCHW.14.29 – LO: 4-9
United States – BUSPROG: Technology
Closing Projects Or Phases
Bloom’s: Knowledge
Multiple Choice
27. _____ involves working with stakeholders to create the document that formally authorizes a project.
a.
Developing the project charter
b.
Developing the preliminary project scope statement
c.
Developing the project management plan
d.
Performing integrated change control
1
Difficulty: Easy
p.138
INFO.SCHW.14.21 – LO: 4-1
Bloom’s: Comprehension
28. _____ involves coordinating all planning efforts to create a consistent, coherent document.
a.
Developing the project charter
b.
Developing the preliminary project scope statement
c.
Developing the project management plan
d.
Developing the organizational process assets updates
Difficulty: Easy
p.138
INFO.SCHW.14.21 – LO: 4-1
United States – BUSPROG: Technology
What Is Project Integration Management?
Bloom’s: Knowledge
29. The outputs of the _____ process include change request status updates, project management plan updates, and project
document updates.
a.
initiating
b.
planning
c.
executing
d.
monitoring and controlling
d
status updates, project management plan updates, and project document updates.
1
Difficulty: Easy
p.138
INFO.SCHW.14.21 – LO: 4-1
United States – BUSPROG: Technology
What Is Project Integration Management?
Bloom’s: Knowledge
30. The first step in the planning process is _____.
a.
to tie the information technology strategic plan to the organization’s overall strategic plan
b.
to perform a business area analysis
c.
to start defining potential IT projects in terms of their scope, benefits, and constraints
d.
to choose which projects to do and assigning resources to work on them
1
United States – BUSPROG: Technology
What Is Project Integration Management?
Bloom’s: Knowledge
31. The _____ stage of information technology planning outlines business processes that are central to achieving strategic
goals and helps determine which ones could most benefit from information technology.
a.
project planning
b.
business area analysis
c.
resource allocation
d.
information technology strategy planning
strategic goals and helps determine which processes could most benefit from IT.
Difficulty: Moderate
INFO.SCHW.14.22 – LO: 4-2
United States – BUSPROG: Technology
Strategic Planning And Project Selection
Bloom’s: Knowledge
32. In the _____ stage of selecting information technology projects, organizations define project scope, benefits, and
constraints.
a.
project planning
b.
business area analysis
c.
resource allocation
d.
information technology strategy planning
Difficulty: Moderate
INFO.SCHW.14.22 – LO: 4-2
United States – BUSPROG: Technology
Strategic Planning And Project Selection
Bloom’s: Knowledge
33. In the _____ stage of selecting information technology projects, organizations select information technology projects.
a.
project planning
b.
business area analysis
c.
resource allocation
d.
information technology strategy planning
organizations select information technology projects.
Difficulty: Easy
INFO.SCHW.14.22 – LO: 4-2
United States – BUSPROG: Technology
Strategic Planning And Project Selection
Bloom’s: Knowledge
34. _____ are new requirements imposed by management, government, or some external influence.
a.
Opportunities
b.
Charters
c.
Problems
d.
Directives
external influence.
1
p.147
INFO.SCHW.14.23 – LO: 4-3
United States – BUSPROG: Technology
Methods for Selecting Projects
Bloom’s: Knowledge
35. _____ analysis is a method of calculating the expected net monetary gain or loss from a project by discounting all
expected future cash inflows and outflows to the present point in time.
a.
Cost of capital
b.
Net present value
c.
Cash flow
d.
Payback
outflows to the present point in time.
1
Difficulty: Easy
p.148
INFO.SCHW.14.23 – LO: 4-3
United States – BUSPROG: Technology
Methods for Selecting Projects
Bloom’s: Knowledge
36. Benefits minus costs is known as the _____.
a.
cost of capital
b.
cash flow
c.
discount factor
d.
opportunity cost of capital
b
Feedback: Cash flow is the benefits minus costs or income minus expenses.
1
Difficulty: Easy
INFO.SCHW.14.23 – LO: 4-3
INFO.SCHW.14.22 – LO: 4-2
United States – BUSPROG: Technology
Strategic Planning And Project Selection
Bloom’s: Knowledge
37. The first step in determining the NPV is to _____.
a.
determine the estimated costs and benefits for the life of the project and the products it produces
b.
determine the discount rate
c.
calculate the net present value
d.
determine the cash flow
benefits for the life of the project and the products it creates.
INFO.SCHW.14.23 – LO: 4-3
United States – BUSPROG: Technology
Methods for Selecting Projects
Bloom’s: Knowledge
38. Which of the following is true of return on investment or ROI?
a.
It is always a percentage.
b.
It is always a positive number.
c.
It is the result of adding the project costs to the profits.
d.
The lower it is, the better.
Feedback: The ROI is always a percentage. It can be positive or negative.
Difficulty: Moderate
INFO.SCHW.14.23 – LO: 4-3
United States – BUSPROG: Technology
Methods for Selecting Projects
Bloom’s: Comprehension
39. The _____ is the minimum acceptable rate of return on an investment.
a.
capitalization rate
b.
internal rate of return
c.
discount rate
d.
required rate of return
INFO.SCHW.14.23 – LO: 4-3
Methods for Selecting Projects
Bloom’s: Knowledge
40. Payback occurs when:
a.
the net cumulative benefits minus costs equal one.
b.
the net cumulative benefits equal the net cumulative costs.
c.
the net costs are lower than the cumulative benefits.
d.
the cumulative benefits are double the cumulative costs.
b
Difficulty: Moderate
p.151`
INFO.SCHW.14.23 – LO: 4-3
United States – BUSPROG: Technology
Methods for Selecting Projects
Bloom’s: Knowledge
41. A project’s internal rate of return can be determined by finding what discount rate results in an NPV of _____ for the
project.
a.
zero
b.
one
c.
a hundred percent
d.
fifty percent
discount rate results in an NPV of zero for the project.
1
Difficulty: Moderate
p.151
INFO.SCHW.14.23 – LO: 4-3
United States – BUSPROG: Technology
Methods for Selecting Projects
Bloom’s: Knowledge
42. In a weighted scoring model, the sum of the weights of all the criteria must total _____ percent.
a.
10
b.
50
c.
100
d.
150
1
United States – BUSPROG: Technology
Methods for Selecting Projects
Bloom’s: Knowledge