Business Environment - Prep Questions

Question 1

You are managing a global project with resources from ten different countries. You want to ensure that key stakeholders are actively promoting the project. How should you proceed to create a
common understanding about the project’s benefits? (Choose two.)

A. Use the benefits management plan to demonstrate that the expected benefits are strategically aligned
B. Use the business case to ensure that the key stakeholders understand the project’s business need and outcomes
C. Use the benefits realization plan to demonstrate that a process is in place to ensure that the expected benefits will be realized and assessed
D. Ensure that stakeholders understand the project’s strategic importance
E. Ensure stakeholders that the project is justifiable

Answer 1

A. Use the benefits management plan to demonstrate that the expected benefits are strategically aligned.
C. Use the benefits realization plan to demonstrate that a process is in place to ensure that the expected benefits will be realized and assessed.

Question 2

You were asked to explain the purpose of defining the expected benefits of the project. You should explain that the project should focus on benefits because it will help to: (Choose three.)

A. Define the principles and beliefs that should guide the team
B. Prioritize projects according to business value
C. Ensure that the team is focused on producing valuable requirements
D. Advance the organization’s business objectives
E. Determine the organization’s objectives

Answer 2

B. Prioritize projects according to business value
C. Ensure that the team is focused on producing valuable requirements
D. Advance the organization’s business objectives

Question 3

The sponsor requested a business case to assess the project’s justification. Which of the following elements are typically included in the business case? (Choose two.)

A. Expected timeline for the outcomes, benefits and costs
B. Assigned project manager
C. How the project Will address the business need
D. Approach used to facilitate and assess benefits realization
E. Product requirements

Answer 3

A. Expected timeline for the outcomes, benefits and costs
C. How the project Will address the business need

The timeline (answer A) and the project outcome (answer C) are part of the business case. The project manager is assigned in the project charter (answer B). The approach used to facilitate and assess benefits realization (answer D) is defined in the benefits realization plan. Product requirements (answer E) are defined in the requirements documentation.

Question 4

A team member does not know what the purpose of organizational change management is. You may say that organizational change management is focused on:

A. Successfully transitioning people through change
B. Ensuring that changes to formally controlled documents and baselines are properly processed and are either approved or rejected
C. Introducing positive changes
D. Influencing the business environment

Answer 4

A. Successfully transitioning people through change

Organizational change management is the systematic method of ensuring that people adopt and even embrace change by preparing for change, incorporating change management activities into the project management plan and consistently supporting people throughout the change process (answer A).

Question 5

You are working with the project sponsor to prepare a benefits management plan. Which of the following describes the purpose of a benefits management plan? (Choose three.)

A. Establishes the benefits’ targets
B. Sets a timeline for realizing the expected benefits
C. Determines if expected benefits have been realized
D. Determines if the benefits outweigh the costs
E. Clarifies the benefits’ alignment to organizational strategy

Answer 5

A. Establishes the benefits’ targets
B. Sets a timeline for realizing the expected benefits
E. Clarifies the benefits’ alignment to organizational strategy

The benefits management plan clarifies the benefits targets (answer A), establishes when the expected benefits will be realized (answer B) and assesses the benefits alignment to organizational strategy (answer E).

Question 6

You are concerned that your pharmaceutical project complies with the existing standards and regulations. What would ensure that the project identifies all the existing compliance requirements?

A. Check the project’s compliance-related documentation
B. Check for compliance requirements in the existing legislation, regulation and policies
C. Check for compliance requirements in the existing legislation, regulation, policies, organizational process assets and enterprise environmental factors
D. Work with the project management office to ensure that the project complies with existing standards

Answer 6

C. Check for compliance requirements in the existing legislation, regulation, policies, organizational process assets and enterprise environmental factors

The existing legislation, regulation, policies, organizational process assets and enterprise environmental factors are common sources of compliance requirements.

Question 7

The business case is used to ensure that the project is justifiable. Match the following descriptions to the business case elements:

A. Alternative business scenarios to address the business need
B. Measurable gains that result from the project
C. Reason to initiate the project
D. Structured assessment of the project’s expected benefits and costs to determine if the project is justifiable
E. What will result from the project

Answer 7

A - Available alternatives
B - Benefits
C - Business need
D - Cost-benefit analysis
E - Outcome

Question 8

The project manager is working with the senior management to record the project’s expected outcomes. Which of the following is an example of an outcome?

A. Improve customer engagement
B. Reduce customer complaints by 10%
C. Repay the investment in five years
D. Implement a new customer service

Answer 8

A. Improve customer engagement

Improve customer engagement (answer A) is an example of what can result from using the projects’ products. Reduce customer complaints by 10% (answer B) is an example of a project benefit. Repay the investment in five years (answer C) is an example of a financial cost-benefit analysis to assess the value added by the project. Implement a new customer service (answer D) is an example of a product that may be produced by the project.

Question 9

Your organization’s PMO wants to ensure that projects decisions are focused on creating value. All of the following practices can help to create a value-based project environment, EXCEPT:

A. Measuring the project’s realized benefits
B. Ensuring that stakeholders share a common understanding about the business value expected from the project
C. Creating opportunities to deliver business value more often
D. Adjusting the product backlog to ensure that the team is focused on high-priority features
E. Emphasizing that every project must have a solid return on investment (ROI)

Answer 9

E. Emphasizing that every project must have a solid return on investment (ROI)

Business value may not represent financial gain (e.g., social improvements).

Question 10

You are managing an Oil and gas project with extensive compliance requirements. Which of the following BEST describes how the project management office can help to manage project compliance?

A. Conducting regulatory inspections to confirm compliance
B. Adapting the project requirements and approach to ensure compliance
C. Clarifying concerns with regulators to ensure that requirements are addressed
D. Ensure that the project management processes comply with international standards

Answer 10

D. Ensure that the project management processes comply with international standards

The project management office can ensure that the project management processes comply with international standards.

Question 11

You are the project manager of an international project that is nearly closed. How should you ensure that stakeholders are aware of the benefits delivered by the project?

A. Send a copy of the business case, benefits management plan and benefits register to every stakeholder to ensure that everyone understands the project’s value
B. Organize a meeting with stakeholders to review the project’s expected and realized benefits, and to address any questions and concerns
C. Ask key stakeholders to record their understanding of the realized benefits
D. Send a copy of the project’s final performance report and hold a lessons learned exercise to discuss the project’s benefits

Answer 11

B. Organize a meeting with stakeholders to review the project’s expected and realized benefits, and to address any questions and concerns

The pr ‘ect manager should meet face-to-face with key stakeholders to review the project’s expected and realized benefits, as well as address any questions and concerns (answer B).

Question 12

The business case is used to ensure that the project is justifiable. Which of the following elements can typically be found in a business case?

A. Cost-benefit analysis and the benefits management approach
B. A narrative description of the work
C. Assumptions and constraints
D. The business need and a cost-benefit analysis

Answer 12

D. The business need and a cost-benefit analysis

A typical business case may include a description of the project business need and a cost-benefit analysis, as well as frame the project within the organization strategy.

Question 13

You are the project manager in an oil-refinery expansion project. One team member reported that your company may be exposed to legal penalties because one of the project deliverable does not
comply with industry laws and regulations. Which of the following should be updated next?

A. Issue log
B. Risk register
C. Performance report
D. Organizational process assets

Answer 13

A. Issue log

You should start by recording the issue in the issue log. The issue log may then be used to track the issue from its identification to its resolution.

Question 14

Olivia is managing an airport extension project that is well underway. One team member notified Olivia that the project is at risk of noncompliance. How should Olivia proceed?

A. Ask the team member to notify regulators requesting instructions on how to address compliance issues
B. Set up a compliance council to address the compliance issues
C. Request a regulatory audit that can provide confidence that the project remains compliant
D. Conduct a regulatory inspection and assess compliance risks

Answer 14

D. Conduct a regulatory inspection and assess compliance risks

Olivia first concern should be to ensure that the team identifies and assesses existing or potential regulatory issues (answer D) before notifying regulators (answer A), addressing the compliance issues (answer B) and requesting a regulatory audit (answer C).

Question 15

Your company needs to release a new service until the end of the current year. You are working with the senior management to establish benefits targets. Which of the following cycle is usually longer?

A. Project authorization to project closure
B. Project authorization to benefits realization
C. Project authorization to project planning
D. Project authorization to project executing

Answer 15

B. Project authorization to benefits realization

Benefits are often only fully realized after project completion.

Question 16

The business case is used to ensure that the project is justifiable. All of the following options are part of a business case, EXCEPT:

A. Business need
B. Framing the project in the organization strategy
C. Benefit reviews schedule
D. Cost-benefit analysis

Answer 16

C. Benefit reviews schedule

The benefits management plan will define when benefits will be reviewed (answer C). The remaining options can be part of a business case.

Question 17

Significant changes on Oil prices are threatening your project funding and justification. How should you proceed?

A. Review the project charter
B. Perform a cost benefit analysis, reconcile funds and consider how to adjust the project scope
C. Request a change to the project budget
D. Revisit the project cost estimates

Answer 17

B. Perform a cost benefit analysis, reconcile funds and consider how to adjust the project scope

If changes in the economic environment are threatening project funding and feasibility, the business case and funding might be compromised. Additionally, you may consider how to adjust the scope to adapt to the business environment changes.

Question 18

A junior manager is struggling to understand the purpose of the benefits management plan. You should tell him that you will create a benefits management plan because it will help you to: (Choose
three.)

A. Identify Who Will review, record and report realized benefits
B. Recommend a course of action to attain the expected benefits
C. Specify the amount of funds required to attain the benefits
D. Clarify the current benefits baseline used as a basis of comparison
E. Identify benefits realization risks

Answer 18

A. Identify Who Will review, record and report realized benefits
D. Clarify the current benefits baseline used as a basis of comparison
E. Identify benefits realization risks

The benefits management plan may define the benefits owners (answer A), benefits baseline (answer D) and benefits realization risks (answer E). The recommended course of action (answer B) and funding requirements (answer C) are part of the business case.

Question 19

At the end of the design phase, the project manager is conducting a stage gate review. One of the verifications that he needs to perform is confirm that the project is delivering according to promised
benefits. Who should be involved in tracking benefits?

A. Project team
B. Customer and sponsor
C. Subject matter experts
D. Relevant stakeholders

Answer 19

D. Relevant stakeholders

Relevant stakeholders should be involved in benefits tracking.

Question 20

Your company has decided to terminate the projects that are not aligned with its strategy. How should you proceed as the project manager of an ongoing project?

A. Change the scope to eliminate non-strategic elements
B. Review the project charter with the sponsor to confirm alignment to strategy
C. Review the project management plan to confirm alignment to strategy
D. Review the business case and conduct a benefit analysis

Answer 20

D. Review the business case and conduct a benefit analysis

The business case should describe the project alignment to strategy, along with a benefit analysis.

Question 21

You are leading a project that will radically transform the organization’s processes. What is the BEST approach to communicate the need for change?

A. Organize training sessions to improve behaviors and skills and provide regular updates on the project status
B. Ask each line manager to prepare a detailed report clarifying how his or her team will be impacted by the new processes and assess if people are effectively adopting the change
C. Engage senior managers in the project and ask them to remind everyone that the new processes must be adopted
D. Communicate the project vision across the organization, listen to stakeholders’ concerns and opinions and select individuals that can promote the change across the organization

Answer 21

D. Communicate the project vision across the organization, listen to stakeholders’ concerns and opinions and select individuals that can promote the change across the organization

You need to systematically communicate the change across the organization. Answer D is specifically focused on communicating the change.

Question 22

Projects can be authorized based on multiple reasons. The stimulus for initiating a project can be all of the following, EXCEPT:

A. Project charter
B. Customer request
C. Process improvement opportunities
D. Political decision

Answer 22

A. Project charter

The project charter is the document used to formally initiate the project. It is not a stimulus or reason to Iaunch a project. AlI other options can be stimulus for initiating a project.