Palgrave Macmillan - Business - Project Management

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Which of the following statements are true?
I A project is an investment
II Project selection is rarely related to an organisation's long-term strategy and business plan
1. I only
2. II only
3. I and II
4. Neither I nor II
Which of the following is correct? The principal purpose of a business case is to:
1. approve the project charter
2. obtain the funding for a project
3. obtain management commitment and approval for investment
4. to educate the end user about the project
Which of the following is concerned with managing and prioritising sets of projects?
I Scoring and ranking models
II Portfolio optimisation
1. I only
2. II only
3. I and II
4. Neither I nor II
Which of the following is not a scoring and ranking model?
1. Decision tree
2. Analytic hierarchy process
3. Simple multi-attribute rating technique
4. Satisficing
Which of the following is correct? Prioritisation techniques should reflect:
I the degree of business risk involved
II the organisation's internal and external environment
III cost of prioritisation activities compared to expected project returns
1. I and II only
2. I and III only
3. II and III only
4. I, II and III
Which of the following is correct? The purpose of a feasibility study is to:
1. assess the factors which might affect the project
2. determine if a business opportunity is possible
3. improve confidence in the project idea
4. all of the above
Which of the following financial analysis methods requires a discount rate?
1. Net present value
2. Payback period
3. Internal rate of return
4. All of the above
Which of the following is correct? The cost of capital is
1. the annual capital budget of an organisation
2. the opportunity cost of an investment
3. the expected return on an investment
4. the capital expenditure required on a project

Chapter 4 material - Self-assessment review questions and answers for Chapter 4