Chapter 3 Measurable Organizational Value & The Business Case Flashcards
Determining whether employees will be able to adapt to the planned change is ____.
a. organizational feasibility
b. ethical feasibility
c. legal feasibility
d. economic feasibility
e. technical feasibility
: organizational feasibility
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Which of the following statements about the business case is NOT true:
a. A business case provides a project budget.
b. A business case may be a large formal document.
c. A business case provides senior management with sufficient information to fund a project.
d. A business case provides details of possible impacts, costs, and benefits.
e. A business case provides analysis of feasibility.
: A business case provides a project budget.
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All of the following are steps in developing the project’s MOV except:
a. Develop an appropriate metric.
b. Verify and get arrangement from project stakeholders.
c. Identify the desired value of the IT project.
d. Identify the available organizational resources.
e. Set a time frame for achieving MOV.
: Identify the available organizational resources.
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Which of the following is the best MOV statement?
a. Our project should be complete in no more than 180 days and should cost no more than $150,000 and be completed 100% in-house.
b. Our project should increase sales in the Dayton market by 15% next year to complete our company’s Ohio expansion strategy.
c. Our project should produce an advertising campaign in Dayton that wins the Ohio Advertising Guild’s Award for most creative campaign.
d. Our project should make Dayton customers flock to the stores in droves to buy our products.
e. Our project should utilize the Spiral Development approach to eliminate 95% of the major risks to our Dayton sales program.
: Our project should increase sales in the Dayton market by 15% next year to complete our company’s Ohio expansion strategy.
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Trying to decide between three alternatives, a company employed a scoring model. Three criteria were chose, Criterion A was believed to be the most important and so was given a weight of 50%. the other two were deemed to be equal to each other in A relative scoring range of 0 to 10 was used. The table below shows each alternative and their scores. Which alternative should the company choose?
Criteria Alternative A Alternative B Alternative C
A 5 6 7
B 8 7 7
C 8 8 5
a. Choose Alternative A
b. Choose Alternative B
c. Choose either Alternative A or B
d. Choose Alternative c
e. Choose either Alternative A or C
: b. Choose Alternative B
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Scope and schedule are example of:
a. Project Management objectives
b. Project Management infrastructure
c. PMBOK area of knowledge
d. Project Management processes
e. Project Management tools
: Project Management objectives
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Calculate the ROI for a project with total expected costs of $40,000 and total expected benefits of 35,000.
a. -12.5%
b. 12.5%
c. 187.5%
d. 187.5%
e. 1.87%
f. -14.285%
: -12.5%
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A project that provided customers better products and services would impact the ____ are of an organization.
a. operational
b. financial
c. customer
d. social
e. strategic
: customer
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A company utilizes the payback method exclusively to select projects. Which of the following mutually exclusive (they can only do one of them) projects will they choose? (Assume cash flows occur in equal monthly installments)
a. Initial Investment: $10,000 Net Cash Flows: year1: $8,000 year 2: $12,000 year 3: $120,000 each year thereafter: $120,000
b. Initial Investment: $10,000 Net Cash Flows: year1: 0 year 2: $100,000 year 3: $100,000 each year thereafter: $100,000
c. Initial Investment: $100,000 Net Cash Flows: year1: $50,000 year 2: $50,000 year 3: $100,000 each year thereafter: $1,000,000
d. Initial Investment: $100,000 Net Cash Flows: year1: $1,000,000 year 2: $2,000,000 year 3: $2,000,000 each year thereafter: 0
e. Initial Investment: $10,000 Net Cash Flows: year1: 0 year 2: $120,000 year 3: $2,000,000 each year thereafter: $60,000
: Initial Investment: $100,000 Net Cash Flows: year1: $1,000,000 year 2: $2,000,000 year 3: $2,000,000 each year thereafter: 0
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A project that improved operational effectiveness would impact the ____ area of an organization.
a. operational
b. financial
c. customer
d. social
e. strategic
: financial
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