SAMPLE MCQ’s for Project Management

Course MMS
Semester IV
Subject-Project Management

50 MCQs for Sample

1. Which one of the following is captured in the Work Breakdown Structure (WBS)?
A.The life cycle phases
B.The logical order of tasks
C.The scope of the project
D. Project costs
2. Which stage of project management life cycle requires the maximum time of completion
A.Conceptualization
B. Planning
C. Execution
D. Estimation
3. .In Project management when does planning take place?
A.Before the project
B.During the project execution
C.At the start of the project
D.After the project
4 .In the initial stage of the project the probability of completing the project is ___ . A.Zero

B.High

C.Low
D.Medium

5. Which one is a true statement relating to project communications?

A. A project sponsor is responsible for all communication methods and media.

B. Different stakeholders typically have different communication needs.
C. It is best to have a standard set of project reports used for every project.
D. Email is the only way to communicate with large numbers of people.
6. The particular task performance in CPM is known
A.Dummy
B.Event
C. Activity
D.Contract.
7. The critical path
 A. Is a path that operates from the starting node to the end node
B.Is a mixture of all paths.
C.Is the longest path
D.Is the shortest path
8.Free float for any activity is defined as the difference between
A. its earliest finish time and earliest start time for its successor activity
B. its latest start time and earliest start time
C.its latest finish time and earliest start time for its successor activity
D. its earliest finish time and latest start time for its successor activity

9. The time with which direct cost does not reduce with the increase in time is known as
A.crash time
B.normal time
C.optimistic time
D.standard time
10. The time corresponding to minimum total project cost is
A.crash time
B.normal time
C.optimistic time
D.between normal time and crash time

11. Project crashing is the method for -------------

A.Shortening the project duration by reducing the time of one or more critical activities
B.Adding resources at critical points
C.Doing technical analysis of the finished work for review
D.Adding duration to each activity
12. Feasibility study determines -----------------
A.Whether the project is possible with resources
B.Comparing the project with world class manufacturing norms
C.Calculate the cost crashing each unit
D.Add duration to each unit
13. What is a cash flow table in project management?
A. A table portraying inflow of cash in a project
B. A table portraying outgoing expenses of a project
C.It is the tool that is used to study such cash flows by breaking inflows and outflows down, usually on a
monthly basis
D. A table portraying debts taken for a project
14. A project has a Profitability Index of 1.30. What does it mean?
A.The NPV is less than zero
B.The payback period is more than one year
 C.That the project returns Rs 1.30 for every Re 1 invested in the project D.That IRR is 1.30 times
that of the Hurdle Rate
15. If there is no inflation during a period, then the Money Cash flow would be equal to
A. Present Value,
B. Real Cash flow
C. Real Cash flow + Present Value,
16. Real rate of return is equal to:
A. Nominal Rate × Inflation Rate,
B. Nominal Rate ÷ Inflation Rate,
C. Nominal Rate - Inflation Rate,
D. Nominal Rate + Inflation Rate
17. The criteria for acceptance of a project on the basis of Profitability Index (PI) is
A. PI=0
B. PI > 0
C. PI < 0
D. PI > 1
18. In Project crashing, rent and overheads are treated as
A.Significant Cost
B.Insignificant costs
C.Direct Costs
D.Indirect Costs
19. For an activity in a CPM analysis, the early Finish time is 13 and the late Finish time is
13. Duration of activity is 6. Which of the following statements is true?

A.The early start is 6

B.The duration of the activity is 13
C.The slack of this activity is 13
D.The activity is on the critical path

20. Independent float is the amount of time by which:

A.Start of the activity can be delayed without affecting the EST of subsequent activity

B. reduces the float of subsequent activities

C.completion of an activity can be delayed beyond EFT without affecting EST

D.completion of an activity can be delayed beyond earliest possible finishing time

21. PERT (Project Evaluation and Review Technique) analysis is based on

A.Optimistic time, Pessimistic time and Most likely time
B.Pessimistic time, Optional time, Maximum time
C.Optimistic time, Efficient time, Most likely time
 D.Minimax time, Optimistic time and harmonic time
22. Risk in project management is defined as
A.An uncertain event that, if it occurs, has a positive effect on project objectives
B.An uncertain event that, if it occurs, has a negative effect on project objectives C.An uncertain event that,
if it occurs, has a positive or negative effect on project objectives
D.An uncertain event that do not have any effect on project objectives
In PERT (Project Evaluation and Review Technique) method Expected time (Te) is
A. (To+Tp+4Tm)/6
B. (To+Tp+2Tm)/6
C. (To+Tp+Tm)/6
D. (Tm+Tp+4To)/6
23. Risk Event Graph is having following on X axis
A.Gantt Chart
B.Work Break Down Structure
C.Project Life Cycle
D.Splitting
24. Which risk is connected to the circumstance outside the project that may influence the scope of work and the
performance of the organization?
A.Operational Risk
B.Financial Risk
C.Strategic Risk
D.Contextual Risk
25. The numbering of the nodes in A-O-A is done
A.From left to right
B.From Right to Left
C.Randomly
D.On the basis of the duration of the activity
26. Which of the following is not the part of Risk Control
A.Execution of the risk response strategy
B.Monitoring of triggering events
C.Initiating contingency plans
D.Not watching for new risks
27. Conflict occurrence in projects is
A.Unavoidable
B.Depend on type of project
C.Avoidable
D.Depends on culture
28. Outsourced projects are susceptible to conflicts as
A.People get less pay in these projects and work is more
 B.More work pressure and less time horizon
C.These projects are away from home location
D.People are unaccustomed to working together and have different values
29. Who creates the project team?
A. Factory manager
B. Operation manager
C. Project manager
D.Purchase Manager

30. Project Manager must ensure that it develops appropriate trade off/s as
A. Time, cost and performance
B. Time, value and performance
C.Men, Materials and Machines
D.Money, Cost and Return on Investment
31. Who orchestrate the completion of the project by inducting the right people at the right time to address the
right issue and make the right decisions?
A.Project Coordinator
B.Project Manager
C.Operations Manager
D.Strategic Business Unit Head
33.In which stage of team development, team members are worried about how they fit in with the others and how their
capabilities and skills compare.
A.Norming
B.Storming
C.Forming
D.Performing
34 Which of the following represents the estimated value of the work actually accomplished?
A. Earned value (EV)
B. Planned value (PV)
C. Actual cost (AC
D. Cost variance (CV)
35. A schedule performance index (SPI) of 0.76 means:
A. You are over budget
B. You are ahead of schedule
C. You are only progressing at 76 percent of the rate originally planned
D. You are only progressing at 24 percent of the rate originally planned
36. A cost performance index (CPI) of 0.89 means:
A. At this time, we expect the total project to cost 89 percent more than planned
B. When the project is completed we will have spent 89 percent more than planned
C. The project is only progressing at 89 percent of the rate planned
 D. The project is only getting 89 cents out of every dollar invested
37. The cash inflows and (outflows) associated with a project are as follows:
At start (120000) , Year1-40000, Year2-50000, Year3-60000, Residual Value(at the end of 3rd year)-20000. The
payback period for this project would be:
A 2 years and 3 months.
B 2 years and 6 months.
C 3 years.
D 2 years.
38: A Firm is considering undertaking a project that would yield annual profits (after depreciation) of Rs 68,000 for 5
years. The initial outlay of the project would be Rs 800,000 and the project's assets would have a residual value of Rs
50,000 at the end of the project. What would be the accounting rate of return for this project?
A 16%
B 8.5%
C 8.0%
D 9.1%
39.A firm is about to undertake a project and has computed the NPV of the project using a variety of discount rates:
Discount Rate used NPV
10% 130
15% 50
20% -50
What is the approximate IRR of this project?
A 20%
B 17.5%
C 15%
D 22.5%
40. A project has a 60% chance of a $100,000 profit and a 40 per cent of a US $100,000 loss.
The Expected Monetary Value for the project is A. $100,000 profit
B. $60,000 loss
C. $ 20,000 profit
D. $40,000 loss

41. In a payback period method of project evaluation and appraisal the project with
……………….or equal to cut off period will be accepted.
A. More than
B. Less than
C.Positive
D. Negative

42. A project with total budget cost of 30 crores is scheduled to be completed in 80 weeks. A periodic review was
carried out at end of 60 weeks and results are as given:
Budgeted cost of work performed (EV) = 17 crores Actual Cost of work performed (AC = 19 crores Budgeted
cost of work scheduled (PV) = 21 crores What is the cost performance index?
A.0.895
B.0.81
C.0.90
D.1.12
43. In which of the following cases project is in better shape?
A.When both CPI and SPI are less than 1
B.When CPI is more than 1 and SPI is less than one
C.When CPI is less than one and SPI is more than one
D.When both CPI and SPI are more than one
44. A company is considering investing surplus funds in a project. Calculate the NPV at 10 % discount rate for the
following data
Project Year 0 Year 1 Year 2
A (100) 100 100
A. 73.5
B. 173.5
C. 273.5
D. 100
45. Amount of work completed to date compared with planned in the Earned Value Management method is .
A. Schedule Performance Index
B. Cost Performance Index
C. Percentage Complete
D .Percentage Spent
46. The budgeted cost for all the activities in a project with the help of Earned Value Method is
A. Actual Cost
B. Budget at completion
C. Budget for completion
D. Estimate at completion

47. The payback period is the period

A. a project takes to pay back the loan taken to purchase the capital assets
B. equal to the useful life of the machines
C. a project takes to recover its initial cash outflow
D. over which the project will be getting operating cash inflows
48. Net Present Value of a machine is
A. PV of cash inflows less cost of investment
B. PV of cash inflows ÷ cost of investment
C. PV of net profit after tax less cost of investment
D.PV of cash inflows less average cost of investment
49. If you would like to see a list of resources and the tasks that people are assigned to. What view best displays this
information?
A. Resource Sheet
B. Task Usage
C. Gantt Chart
D.: Resource Usage
50. Q 25: What is the default view of a new project in MS project?
A. Gantt View
B. Resource Graph
C. Network View
D.: Workbook View

NEW LINK (https://www.ybstudy.com/2021/10/mcq-on-entrepreneurship-with-answers-pdf.html)

1. Characteristics of Self-Help Groups are_____________

a) SHG comprises 15-20 members & non-partisan in nature

b) Members should belong to same economic strata of society

c) Rational leadership should be encouraged for distribution of power

d) All of these

Answer: d

2. A small-scale entrepreneur is______________

a) A formal-sector entrepreneur with 11 to 50 employees 

b) A formal-sector entrepreneur with 11 to 49 employees 

c) A formal-sector entrepreneur with 16 to 49 employees 

d) A formal-sector entrepreneur with 16 to 50 employees

Answer : b 

3. The following are myths related to entrepreneurs…. 

a) Entrepreneurs are born not made 

b) Entrepreneurs are doers and not thinkers 

c) Entrepreneurs are gamblers 

d) All of the above 

Answer : d

4. The following critical risks are________ 

a) Financial and physical risk  b) Career risks and family risk 

c) Psychological risks 

d) All of the above

Answer: d

5. What are the policies that influence access to finance in context of Innovative entrepreneurship?

a) Debt financing

b) Venture capital

c) Business Angels

d) All of these

Answer: d

6. ‘Angels’ usually provides which type of financing?

a) Debt

b) Equity

c) Stock

d) None of these

Answer: b

7. Which of the following possible financing options has become a popular choice for entrepreneurs?

a) Angel investor

b) Credit cards
c) Venture capital

d) Public offering

Answer: b

8. An entrepreneur’s primary motivation for starting a business is___________

a) To make money

b) To be independent

c) To be famous

d) To be powerful

Answer: b

9. _______________ actions by an entrepreneur are most likely to contribute to creative destruction.

a) Development of a new product

b) Take-over of a competitor

c) Issuing shares

d) Development of a new product

Answer: d

10. The resistance of employees in an organization against flexibility, growth, and diversification can be
overcome by developing_____________.

a) Entrepreneurship

b) Managerial domain

c) Intrapreneurship

d) Administrative domain

Answer: c

11. ______________ shows the process of creating something new.

a) Innovation

b) Business model

c) Modeling

d) Creative flexibility

Answer: a

12. High potential venture_______________

a) has the same growth potential as a life-style firm

b) starts out like life-style firm+

c) drawing interest of private investors only

d) None of these 

Answer: D

 13. An entrepreneurship primary motivation for starting a business is___________

a) To make money

b) To be independent

c) To be famous

d) To be powerful

Answer: b

14. …………….. actions by an entrepreneur most likely to contribute to creative destruction.

a) Development of a new product

b) Take-over of a competitor

c) Issuing shares

d) Development of an organization

Answer: a

15. ……………….. Shows the process of creating something new.

a) Innovation

b) Business model 

c) Modeling

d) Creative flexibility

Answer: a

16. The activity which occurs when the new venture is started is called -

a) Motivation

b) Business skills

c) Departure point

d) Goal orientation

Answer: c
17. Having less than 50 percent of equity share in an international venture is calleda) Minority interest

b) Joint venture

c) Majority interest

d) Exporting

Answer: a

18. Bankers say that most businesses fail because of the _________ inability to plan properly.

a) Investors

b) Marketers

c) Entrepreneurs

d) Consultants

Answer: c

19. Industry analysis should include information on:

a) Market size of competitor’s product

b) Growth rate of suppliers

c) New product entry

d) Economic conditions

Answer: d

20. What is the most common reason given for why people choose to become entrepreneurs?

a) To make a lot of money.

b) To escape the long hours associated with corporate jobs.

c) To be their own boss.

d) To be able to retire early.

Answer: c

21. _____ is the position of a firm on a continuum ranging from highly conservative to highly entrepreneurial.

a) Risk tolerance

b) Entrepreneurial intensity

c) Inventiveness

d) Organizational bureaucracy
Answer: b

22. Some entrepreneurs report that the financial rewards associated with entrepreneurship can be bittersweet
if they are accompanied by________.

a) modest upside potential

b) the thrill of starting a business

c) motivating factors

d) losing control of the firm

Answer: d

23. Entrepreneurs are…………………………

a) Moderate risk taker

b) High risk taker

c) Avoidance

d) Both b & c

Answer: a

24. EDP ( Entrepreneurship Development( Programmes) is required to help –

a) Existing entrepreneurs

b) First generations entrepreneurs

c) Future generation entrepreneurs

d) None of the above

Answer: c

25. Fiscal and monetary measures to stimulate investment in private & public sector includes______________

a) Lowering the rate of interest

b) Tax reduction & Public Expenditure

c) Price policy & Abolition of monopoly

d) All of these

Answer : d

26. Why should an entrepreneur do a feasibility study for starting a new venture?

a) To see if there are possible barriers to success

b) To identify possible sources of funds

c) To estimate the expected sales

d) To explore potential customers

Answer: a

27. Which of the following factor has allowed small companies to act like they are big ones?

a) Technology

b) Customers

c) Economic development

d) Competition

Answer: a

28. A Micro Entrepreneurs are_________

a) A formal-sector entrepreneur with zero to 10 employees 

b) A formal-sector entrepreneur with 1 to 10 employees 

c) A formal-sector entrepreneur with zero to 15 employees 

d) A formal-sector entrepreneur with 1 to 15 employees

Answer: a

29. Entrepreneurship can be defined as________________

a)  The act of initiating, creating, building, expanding and sustaining a venture and gathering The necessary resources
to exploit an opportunity in the marketplace for long-term wealth and capital gain 

b)  The act of creating, building, expanding and sustaining a venture, building an entrepreneurial team and gathering
the necessary resources to exploit an opportunity in the marketplace for long-term wealth and capital gain 

c)  The act of initiating, creating, building, expanding and sustaining a venture, building an entrepreneurial team and
gathering the necessary resources to exploit an opportunity in the marketplace for long-term wealth and capital gain 

d) None of the Above 

Answer: c

30. A women Entrepreneur is supposed to have a minimum financial interest in share capital of
entrepreneurial enterprise:

a) 35 per cent

b) 51 per cent

c) 25 per cent

d) None of the above

Answer: b
31. Sustainability of entrepreneur development depends on factors like_______________

a) Technical skills

b) Technology

c) Organizational sustainability

d) All of these

Answer : d

32. In terms of innovative business the five policy includes ____________

a) Private sources of funding, Debt financing, Venture capital, Business 

angels, subsidies and grants from governments

b) Equity shares, Preference shares, debentures, mutual fund and Insurance

c) Equity shares, private sources, preference shares, debentures and capital 

investment

d) None of these

Answer: a

34. __________________ are the informal associations of people who choose to come together to find ways to
improve their living condition

a) NGO

b) Self-Help Groups

c) Private companies

d) None of these

Answer: b

35. The activity which occurs when the new venture is started is called:

a) Motivation

b) Business skills

c) Departure point

d) Goal orientation

Answer: C

36. Having less than 50 percent of equity share in an international venture is called:

a) Minority interest
b) Joint venture

c) Majority interest

d) Exporting

Answer: a

37. Which of the following is alternatively called corporate venturing?

a) Entrepreneurship

b) Intrapreneurship

c) Act of stating a new venture

d) Offering new products by an existing company

Answer: b

38. Individuals influencing an entrepreneur’s career choice and style are known as which of the following?

a) Role model

b) Moral-support network

c) Professional support network

d) Support system

Answer: a
39. Industry analysis should include information on –

a) Market size of competitor’s productI 

b) Growth rate of suppliers

c) New product entry

d) Economic conditions

Answer: d
40. We need to update the business plan because

a) Environmental factors and internal factors can change the direction of the plan

b) Goals set by the entrepreneurs may be unreasonable

c) Goals may not be measurable

d) Goals may not be specific

Answer: a

41. From the following which one is not classification of entrepreneurs according to the types of business?

a) Wholesale trade
b) Retail trade

c) Exporter

d) Rural entrepreneur

Answer: d

42. What is the process by which individuals pursue opportunities without regard to resources they currently
control?

a) Startup management

b) Entrepreneurship

c) Financial analysis

d) Feasibility planning

Answer: b

43. Entrepreneurs typically form________________

a) Service businesses

b) Manufacturing companies

c) Constructive companies

d) A variety of ventures

Answer: d

44. Which of the following is NOT a common myth about entrepreneurs?

a) Everyone has the potential to be an entrepreneur.

b) Entrepreneurs are born, not made.

c) Entrepreneurs are gamblers.

d) Entrepreneurs love the spotlight.

Answer: a

45. Influence on innovation and job creation best typifies entrepreneurial firms'________.

a) Impact on society

b) Economic impact

c) Impact on larger firms

d) Impact on the environment

Answer: b

A. demand and supply conditions

B. market strategy
C. after sales service
D. all the above
ANSWER: D
145. Every entrepreneur should draw an for his project to ensure the timely
completion of all activities involved in setting up an enterprise.
A. cost structure
B. implementation plan
C. market structure
D. production structure
ANSWER: B
146. describes the direction, the enterprise is going in, what its goals are, where it wants to
be,and how it is going to get there.
A. project report
B. technical anlaysis
C. market analysis
D. financial analysis
ANSWER: A
147. Today, many companies are using managerial techniques that are designed to encourage
.
A. increasing profits
B. legal compliances
C. Ethical behaviour
D. shareholders value
ANSWER: C
148. Entrepreneurial development is the key to achieve all-round through
A. economic development
B. increase in profits
C. shareholders value
D. business development
ANSWER: A
149. Swot Analysis is a tool
A. Conceptual
B. Modern
C. Scientific
D. Traditional
ANSWER: A
150. NABARD is a Bank for development
A. Urban
B. Agricultural and Rural
C. Scientific
D. Agriculture and research
ANSWER: