Test Bank for Project Management in Practice, 7th Ed.
By Jack R. Meredith, Scott M. Shafer
Chapter 1-8, Latest Edition, Verified Answers
,Chapter 1: The World of Project Management
True/False
1. A primary purpose of forming projects is to assign the responsibility for accomplishing some
organizational task to a specific person or small group.
Answer: True
Response: See section 1.1 Level: easy
2. One of the few similarities between project management and general management is that both exist in
the well-defined organizational structure of superior/subordinates in the overall organization.
Answer: False
Response: See section 1.2 Level: medium
3. Many recent developments in project management are being driven by changes in the nature of the
American workforce.
Answer: False
Response: See section 1.1 Level: medium
4. There has been a growing use of projects to achieve an organization’s strategic goals
Answer: True
Response: See section 1.1 Level: medium
,5. While general managers have their authority limited to specific areas in the overall organization, project
managers have authority over any activity required by the project.
Answer: False
Response: See section 1.2 Level: medium
6. Projects are always carried out under conditions of uncertainty.
Answer: True
Response: See section 1.3 Level: easy
7. One can trade-off time and cost when managing a project, but the project’s technical specifications must
be maintained exactly as the client initially specifies.
Answer: False
Response: See section 1.3 Level: medium
8. Nonnumeric project selection methods are only suitable if numeric methods are not available.
Answer: False
Response: See section 1.5 Level: medium
9. When using financial methods for selecting projects, the payback period is the simplest and best method
to use.
, Answer: False
Response: See section 1.5 Level: medium
10 Rank-ordering a large number of projects can be done with a Q-sort.
Answer: True
Response: See section 1.5 Level: medium
11. A disadvantage of using the payback period method for selecting projects is that it cannot reflect the
time-value of money.
Answer: True
Response: See section 1.5 Level: medium
12. A disadvantage of using the discounted cash flow method (or net present value) for selecting projects is
that it ignores all non-monetary factors associated with the project except risk.
Answer: True
Response: See section 1.5 Level: medium
13. A disadvantage of using scoring models rather than financial models for selecting projects is that they
cannot include the project’s profitability.
By Jack R. Meredith, Scott M. Shafer
Chapter 1-8, Latest Edition, Verified Answers
,Chapter 1: The World of Project Management
True/False
1. A primary purpose of forming projects is to assign the responsibility for accomplishing some
organizational task to a specific person or small group.
Answer: True
Response: See section 1.1 Level: easy
2. One of the few similarities between project management and general management is that both exist in
the well-defined organizational structure of superior/subordinates in the overall organization.
Answer: False
Response: See section 1.2 Level: medium
3. Many recent developments in project management are being driven by changes in the nature of the
American workforce.
Answer: False
Response: See section 1.1 Level: medium
4. There has been a growing use of projects to achieve an organization’s strategic goals
Answer: True
Response: See section 1.1 Level: medium
,5. While general managers have their authority limited to specific areas in the overall organization, project
managers have authority over any activity required by the project.
Answer: False
Response: See section 1.2 Level: medium
6. Projects are always carried out under conditions of uncertainty.
Answer: True
Response: See section 1.3 Level: easy
7. One can trade-off time and cost when managing a project, but the project’s technical specifications must
be maintained exactly as the client initially specifies.
Answer: False
Response: See section 1.3 Level: medium
8. Nonnumeric project selection methods are only suitable if numeric methods are not available.
Answer: False
Response: See section 1.5 Level: medium
9. When using financial methods for selecting projects, the payback period is the simplest and best method
to use.
, Answer: False
Response: See section 1.5 Level: medium
10 Rank-ordering a large number of projects can be done with a Q-sort.
Answer: True
Response: See section 1.5 Level: medium
11. A disadvantage of using the payback period method for selecting projects is that it cannot reflect the
time-value of money.
Answer: True
Response: See section 1.5 Level: medium
12. A disadvantage of using the discounted cash flow method (or net present value) for selecting projects is
that it ignores all non-monetary factors associated with the project except risk.
Answer: True
Response: See section 1.5 Level: medium
13. A disadvantage of using scoring models rather than financial models for selecting projects is that they
cannot include the project’s profitability.
