GMS450 MIDTERM UNIT 2 EXAM QUESTIONS AND ANSWERS
WITH COMPLETE SOLUTIONS VERIFIED
Although every project begins with a proposal,
not every proposal becomes a project
When selecting a project, you must ensure these (5) conditions are considered:
Is the project potentially profitable?, Is the project required?, Does the firm have the
skills to complete the project?, Does it have the capacity to carry out the project?, Can
the project be economically successful?
Projects are selected based on...
Qualitative and/or Quantitative models
Nonnumeric selection method does not...
use numbers for evaluation
3 types of nonnumeric selection methods are...
Sacred Cow, Operating/Competitive Necessity, Comparative benefits
Numeric selection methods use...
numbers for evaluation
4 types of numeric selection methods that we discuss are...
Payback period, Discounted cashflow, Real Option Analysis, Scoring Methods
, In the Sacred Cow method the CEO or other senior...
may suggest a potential product or service that the organization might offer to
customers.
In the Sacred Cow method, whatever the selection process...
the project will be approved
In the Operating/Competitive necessity method, projects are...
Necessary for continued operation of a group, facility, or the firm itself
In the Operating/Competitive Necessity method, the company may...
Invest in a new product/service which is not profitable but to be competitive and keep its
share in the market
In the Comparative benefits (Q-sort) method, you must select projects from...
a list
In the Comparative benefits (Q-sort) method, you must seperate...
the projects into three subsets; good, fair, and poor
In the Comparative benefits (Q-sort) method, if there are more than 7 or 8
members in a subset...
separate the group into two subsets; e.g. "good-plus" and "good-minus"
In the Comparative benefits (Q-sort) method, continue subdividing until no set
has more than...
WITH COMPLETE SOLUTIONS VERIFIED
Although every project begins with a proposal,
not every proposal becomes a project
When selecting a project, you must ensure these (5) conditions are considered:
Is the project potentially profitable?, Is the project required?, Does the firm have the
skills to complete the project?, Does it have the capacity to carry out the project?, Can
the project be economically successful?
Projects are selected based on...
Qualitative and/or Quantitative models
Nonnumeric selection method does not...
use numbers for evaluation
3 types of nonnumeric selection methods are...
Sacred Cow, Operating/Competitive Necessity, Comparative benefits
Numeric selection methods use...
numbers for evaluation
4 types of numeric selection methods that we discuss are...
Payback period, Discounted cashflow, Real Option Analysis, Scoring Methods
, In the Sacred Cow method the CEO or other senior...
may suggest a potential product or service that the organization might offer to
customers.
In the Sacred Cow method, whatever the selection process...
the project will be approved
In the Operating/Competitive necessity method, projects are...
Necessary for continued operation of a group, facility, or the firm itself
In the Operating/Competitive Necessity method, the company may...
Invest in a new product/service which is not profitable but to be competitive and keep its
share in the market
In the Comparative benefits (Q-sort) method, you must select projects from...
a list
In the Comparative benefits (Q-sort) method, you must seperate...
the projects into three subsets; good, fair, and poor
In the Comparative benefits (Q-sort) method, if there are more than 7 or 8
members in a subset...
separate the group into two subsets; e.g. "good-plus" and "good-minus"
In the Comparative benefits (Q-sort) method, continue subdividing until no set
has more than...
