Project Management Fundamental Term

Question 1

A Guide to the Project Management

Body of Knowledge (PMBOK Guide)

Answer 1

The PMI publication that defines widely
accepted project management practices.
The CAPM and the PMP exam are based
on this book.

Question 2

Application areas

Answer 2

The areas of expertise, industry, or 
function where a project is centered. 
Examples of application areas include 
architecture, IT, health care, and 
manufacturing.

Question 3

Business value

Answer 3

A quantifiable return on investment. The 
return can be tangible, such as 
equipment, money, or market share. The 
return can also be intangible, such as 
brand recognition, trademarks, and 
reputation.

Question 4

Cultural and social environment

Answer 4

Defines how a project affects people and
how those people may affect the project.
Cultural and social environments include
the economic, educational, ethical,
religious, demographic, and ethnic
composition of the people affected by the
project.

Question 5

Deliverable

Answer 5

A product, service, or result created by a
project. Projects can have multiple
deliverables.

Question 6

General management skills

Answer 6

These include the application of 
accounting, procurement, sales and 
marketing, contracting, manufacturing, 
logistics, strategic planning, human 
resource management, standards and 
regulations, and information technology.

Question 7

International and political environment

Answer 7

The consideration of the local and 
international laws, languages, 
communication challenges, time zone 
differences, and other non-collocated 
issues that affect a project’s ability to 
progress

Question 8

Interpersonal skills

Answer 8

The ability to interact, lead, motivate, and

manage people.

Question 9

Iron Triangle of Project Management

Answer 9

A triangle with the characteristics of time,
cost, and scope. Time, cost, and scope
each constitute one side of the triangle; if
any side of the Iron Triangle is not in
balance with the other sides, the project
will suffer. The Iron Triangle of Project
Management is also known as the Triple
Constraints of Project Management, as all
projects are constrained by time, cost, and
scope

Question 10

Physical environment

Answer 10

The physical structure and surroundings

that affect a project’s work.

Question 11

Process groups

Answer 11

A collection of related projects working in

unison toward a common deliverable.

Question 12

Progressive elaboration

Answer 12

The process of gathering project details.
This process uses deductive reasoning,
logic, and a series of informationgathering techniques to identify details
about a project, product, or solution.

Question 13

Project

Answer 13

A temporary endeavor to create a unique
product, service, or result. The end result
of a project is also called a deliverable

Question 14

Project benefits management plan

Answer 14

A documented created and maintained by
the project sponsor and the project
manager. The project benefits
management plan defines what benefits
the project will create, when the benefits
will be realized, and how the benefits will
be measured.

Question 15

Project business case

Answer 15

Created and maintained by the project
sponsor and shows the financial validity of
why a project is chartered and launched
within the organization. Typically, the
project business case is created before
the launch of the project and may be used
as a go/no-go decision point.

Question 16

Project environment

Answer 16

The location and culture of the 
environment where the project work will 
reside. The project environment includes 
the social, economic, and environmental 
variables the project must work with or 
around.

Question 17

Project Management Institute (PMI)

Answer 17

An organization of project management
professionals from around the world,
supporting and promoting the careers,
values, and concerns of project managers.

Question 18

Project life cycle

Answer 18

The phases that make up the project.
Project life cycles are unique to the type of
work being performed and are not
universal to all projects.

Question 19

Project management office (PMO)

Answer 19

A central office that oversees all projects 
within an organization or within a 
functional department. A PMO supports 
the project manager through software, 
training, templates, policies, 
communication, dispute resolution, and 
other services.

Question 20

Project Management Professional (PMP)

Answer 20

A person who has proven project
management experience and has qualified
for and then passed the PMP
examination.

Question 21

Project portfolio management

Answer 21

The management and selection of
projects that support an organization’s
vision and mission. It is the balance of
project priority, risk, reward, and return on
investment. This is a senior management
process

Question 22

Subprojects

Answer 22

A smaller project managed within a larger,
parent project. Subprojects are often
contracted work whose deliverable allows
the larger project to progress

Question 23

Triple Constraints of Project

Management

Answer 23

Also known as the Iron Triangle. This
theory posits that time, cost, and scope
are three constraints that every project
has.

Question 24

Work performance data

Answer 24

Raw data, observations, and 
measurements about project components. 
Work performance data is gathered and 
stored in the project management 
information system

Question 25

Work performance information

Answer 25

Work performance information is the
processed and analyzed data that will help
the project manager make project
decisions

Question 26

Work performance reports

Answer 26

Work performance reports is the formatted 
communication of work performance 
information. Work performance reports 
communicate what’s happening in the 
project through status reports, memos, 
dashboards, or other modalities.