PMI PMP Practice Test Questions and Exam Dumps Part7 Q121-140

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Question 121

What is the primary purpose of a risk register?

  1. To document identified risks and related information
  2. To approve project funding
  3. To replace the project schedule
  4. To record employee performance

Correct Answer: 1

Explanation

The risk register is used to document identified risks and relevant information about them throughout the project. It may include risk descriptions, causes, potential impacts, owners, probability, impact ratings, response strategies, and status. The register is updated as new risks are identified or existing risks change. It supports ongoing risk monitoring and response management. The risk register does not replace the schedule or budget and is not primarily used for employee performance management. Maintaining accurate risk information helps the project team respond proactively to uncertainty.

Question 122

A Scrum team has completed its sprint. What is the main purpose of the sprint review?

  1. Assign individual performance ratings
  2. Inspect the increment and gather feedback
  3. Create the project charter
  4. Approve employee salaries

Correct Answer: 2

Explanation

The sprint review provides an opportunity for the Scrum team and relevant stakeholders to inspect the completed increment and discuss progress toward the product goal. Feedback gathered during the review can influence future backlog priorities and product decisions. It is not primarily a meeting for evaluating individual employee performance or approving administrative matters. The review supports transparency, inspection, and adaptation. By involving stakeholders in the discussion, the team can confirm whether the product is moving in the desired direction and adjust future work based on current information.

Question 123

A project has a CPI of 0.80. What does this indicate?

  1. The project is under budget
  2. The project is exactly on budget
  3. The project is experiencing cost inefficiency
  4. The project has no actual costs

Correct Answer: 3

Explanation

A Cost Performance Index of 0.80 indicates unfavorable cost performance. CPI is calculated by dividing earned value by actual cost. When CPI is below 1.0, the project is receiving less earned value for each unit of money spent than planned. This suggests that the project is experiencing cost inefficiency and may be trending toward a cost overrun if the performance continues. The project manager should analyze the reasons for the unfavorable performance and determine whether corrective or preventive actions are needed.

Question 124

Which leadership approach focuses on supporting and empowering the team?

  1. Autocratic leadership
  2. Servant leadership
  3. Directive leadership
  4. Transactional control

Correct Answer: 2

Explanation

Servant leadership focuses on supporting team members, removing obstacles, encouraging collaboration, and helping individuals develop their capabilities. Instead of controlling every decision, the project leader creates an environment where the team can contribute effectively and take ownership of its work. This approach is particularly useful in agile environments, where empowered and self-managing teams are important. Servant leadership does not mean that the project manager avoids accountability. Rather, the leader provides support, guidance, and facilitation while enabling the team to perform at its best.

Question 125

A customer requests additional functionality that is outside the approved scope. What should the project manager do first?

  1. Add it immediately
  2. Reject it automatically
  3. Assess the request through the change process
  4. Ask the team to work overtime

Correct Answer: 3

Explanation

A request outside the approved scope should be evaluated through the established change management process. The project manager should assess its potential impact on scope, schedule, cost, quality, resources, risks, and benefits before a decision is made. Automatically adding the functionality can result in scope creep and uncontrolled changes. Automatically rejecting it may also prevent the project from responding to legitimate business needs. Following the change process ensures that decisions are evaluated consistently and approved by the appropriate authority before the additional work becomes part of the project.

Question 126

What does a WBS primarily organize?

  1. Stakeholders
  2. Project work and deliverables
  3. Employee salaries
  4. Vendor invoices

Correct Answer: 2

Explanation

The Work Breakdown Structure organizes the total project scope into smaller, manageable components called work packages. It focuses on the work and deliverables required to accomplish the project’s objectives. Breaking work into smaller components makes planning, estimating, scheduling, assigning responsibilities, and monitoring progress easier. The WBS is not primarily an organizational chart or financial record. It should represent the project’s approved scope and provide a structured foundation for subsequent planning activities. A well-developed WBS also helps reduce the likelihood of missing important project work.

Question 127

A team member disagrees with another member during a meeting. What should the project manager encourage?

  1. Constructive discussion
  2. Immediate punishment
  3. Avoiding all disagreements
  4. Removing both members

Correct Answer: 1

Explanation

Healthy disagreement can help teams identify better solutions when it is handled constructively. The project manager should encourage the team members to discuss the issue respectfully, focus on facts and project objectives, and understand each other’s perspectives. Conflict does not always need to be eliminated because differences can reveal useful information or alternative approaches. Punishment or removing team members without understanding the situation may worsen the problem. The goal is to resolve the underlying issue while maintaining a collaborative environment and preserving productive team relationships.

Question 128

Which contract type generally places the greatest cost risk on the seller?

  1. Cost-plus-fixed-fee
  2. Time and materials
  3. Firm-fixed-price
  4. Cost-plus-incentive-fee

Correct Answer: 3

Explanation

A firm-fixed-price contract generally places greater cost risk on the seller because the agreed price is established in advance for the defined work. If the seller’s costs increase beyond expectations, the seller may have to absorb the additional cost unless contract terms provide otherwise. Cost-reimbursable contracts generally place more cost risk on the buyer because eligible costs are reimbursed according to the agreement. Contract selection should consider scope clarity, risk distribution, market conditions, and organizational requirements. The project manager should understand the implications before selecting or managing a contract.

Question 129

A project manager notices repeated defects in deliverables. What should be investigated?

  1. Root cause
  2. Employee birthdays
  3. Office location
  4. Project logo

Correct Answer: 1

Explanation

Repeated defects indicate that the project may have an underlying process or quality problem. The project manager and team should investigate the root cause rather than simply correcting each individual defect. Root cause analysis can identify issues such as unclear requirements, inadequate processes, insufficient training, poor tools, or ineffective quality controls. Once the underlying cause is understood, appropriate corrective or preventive actions can be developed. Addressing root causes helps prevent the same problem from recurring and can improve both deliverable quality and overall project performance.

Question 130

In Kanban, what does limiting WIP help achieve?

  1. Increase unfinished work
  2. Improve flow
  3. Eliminate all project risks
  4. Remove the product backlog

Correct Answer: 2

Explanation

Limiting work in progress, or WIP, helps improve workflow by preventing the team from starting too many tasks simultaneously. Excessive WIP can create bottlenecks, increase multitasking, and delay completion. By limiting the amount of active work, teams can focus on finishing existing items before starting additional work. This improves visibility into bottlenecks and supports smoother flow through the system. WIP limits do not eliminate all project risks or remove the need for a backlog. They are primarily a mechanism for managing flow and improving delivery efficiency.

Question 131

A stakeholder becomes resistant after a major project change. What should the project manager do?

  1. Understand the concern and address it
  2. Ignore the stakeholder
  3. Remove the stakeholder
  4. Cancel the change automatically

Correct Answer: 1

Explanation

Resistance often occurs when stakeholders do not understand a change, disagree with its impact, or believe their interests may be negatively affected. The project manager should first understand the stakeholder’s concerns and determine what information or support is needed. Clear communication, active listening, and involvement can help address legitimate concerns and improve acceptance. Automatically cancelling the change may not be appropriate if it has already been approved. Similarly, ignoring or removing the stakeholder can increase resistance. Effective stakeholder engagement supports smoother adoption of project changes.

Question 132

Which document describes how project work will be executed, monitored, and controlled?

  1. Project management plan
  2. Issue log
  3. Stakeholder register
  4. Procurement statement

Correct Answer: 1

Explanation

The project management plan describes how the project will be executed, monitored, controlled, and closed. It integrates subsidiary plans and baselines that define how different aspects of the project will be managed. These may include scope, schedule, cost, quality, resources, communications, risk, procurement, and stakeholder-related approaches. The issue log tracks current problems, while the stakeholder register contains information about stakeholders. The project management plan therefore serves as a central framework for managing the project and maintaining alignment with approved objectives.

Question 133

A project manager wants to identify the most important stakeholders early. Which information is most useful?

  1. Their interest and influence
  2. Their age
  3. Their favorite software
  4. Their commuting distance

Correct Answer: 1

Explanation

Stakeholder interest and influence are important factors when determining how stakeholders should be engaged and managed. A stakeholder with high influence and high interest may require close management and frequent communication, while stakeholders with lower influence may need different engagement approaches. Understanding these characteristics helps the project manager prioritize communication and engagement efforts. Personal information unrelated to the project, such as age or commuting distance, does not normally help determine stakeholder management strategies. Stakeholder analysis should focus on characteristics that can affect or be affected by the project.

Question 134

A project is behind schedule, but adding resources may increase costs significantly. What should the project manager do?

  1. Add resources immediately
  2. Analyze alternatives and impacts
  3. Ignore the delay
  4. Reduce quality without approval

Correct Answer: 2

Explanation

The project manager should analyze the available schedule recovery options and their effects before taking action. Alternatives may include fast tracking, crashing, resequencing work, removing noncritical delays, or addressing resource constraints. Adding resources immediately may improve schedule performance but can significantly increase cost or introduce coordination problems. Reducing quality without approval is unacceptable because it can create additional risks and rework. A structured analysis allows the project manager to select an appropriate response based on project priorities, constraints, risks, and stakeholder expectations.

Question 135

What is the purpose of a retrospective in an agile environment?

  1. Review how the team can improve
  2. Approve the project budget
  3. Assign contracts
  4. Approve organizational policies

Correct Answer: 1

Explanation

A retrospective gives the agile team an opportunity to reflect on its recent work and identify ways to improve its processes, collaboration, and effectiveness. The team discusses what went well, what could have been better, and which improvements should be tried in future iterations. The goal is continuous improvement rather than assigning blame. Budget approvals and contract administration are separate management activities. Regular retrospectives allow teams to adapt their working practices based on experience and can gradually improve productivity, quality, communication, and team performance.

Question 136

Which activity is most appropriate during project closing?

  1. Obtain final acceptance
  2. Add new scope
  3. Start uncontrolled work
  4. Ignore outstanding documentation

Correct Answer: 1

Explanation

Obtaining final acceptance is an important part of project closing because it confirms that the completed deliverables have been accepted by the appropriate customer or sponsor. Closing also involves completing administrative activities, documenting lessons learned, archiving project information, releasing resources, and confirming that contractual or financial obligations have been addressed. Adding new scope at closure is generally inappropriate unless a new or separately authorized effort is created. Proper closure ensures that the project is formally completed and valuable knowledge is retained for future work.

Question 137

A risk has a high probability and high impact. What should the project manager generally do?

  1. Prioritize an appropriate response
  2. Ignore it until it occurs
  3. Remove it from the risk register
  4. Assign it to any team member

Correct Answer: 1

Explanation

A high-probability, high-impact risk usually deserves significant attention because it can materially affect project objectives. The project manager should assess the risk and develop an appropriate response strategy based on the nature of the threat or opportunity. For a threat, responses might include avoidance, mitigation, transfer, or acceptance, depending on the circumstances. Simply ignoring the risk increases exposure. Removing it from the risk register does not eliminate the underlying uncertainty. Risk prioritization helps ensure that limited project resources are focused on the most significant uncertainties.

Question 138

A project manager needs expert advice about a specialized technical issue. Who should be consulted?

  1. Subject matter expert
  2. Random stakeholder
  3. Administrative assistant
  4. Unrelated vendor

Correct Answer: 1

Explanation

A subject matter expert has specialized knowledge or experience relevant to a particular project area. Consulting an appropriate SME can help the project manager and team understand technical constraints, evaluate alternatives, identify risks, and make better-informed decisions. The SME may come from inside or outside the organization depending on the project’s needs. The project manager remains responsible for managing the project but does not need to personally possess every specialized skill. Using expert knowledge appropriately can improve decision quality and reduce uncertainty in complex project situations.

Question 139

What does a burnup chart primarily show?

  1. Work completed compared with total scope
  2. Employee attendance
  3. Contract prices
  4. Risk ownership only

Correct Answer: 1

Explanation

A burnup chart visually shows progress toward completing work by displaying completed work against the total amount of work or scope. It can also make changes to scope easier to see because the total scope line may increase or decrease over time. This provides useful transparency for agile teams and stakeholders. A burndown chart typically emphasizes remaining work, while a burnup chart emphasizes completed work and can show scope changes clearly. Neither chart is designed primarily for tracking employee attendance, contracts, or risk ownership.

Question 140

A project manager learns that a key assumption is no longer valid. What should be done?

  1. Assess its impact and update project information
  2. Ignore it
  3. Hide it from stakeholders
  4. Continue planning based on the old assumption

Correct Answer: 1

Explanation

When an important assumption changes, the project manager should assess how the change affects scope, schedule, cost, resources, risks, quality, and other project constraints. Relevant project documents and plans should be updated, and stakeholders should be informed when appropriate. A changed assumption can create a new risk, issue, or required change to the project approach. Continuing to rely on an invalid assumption can lead to inaccurate planning and poor decisions. Proactive assessment allows the team to respond before the changed condition causes greater project disruption.