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NEW QUESTION: 1
The project is now in stage 2. The Project Manager has heard about the possibility of a competitor also producing a calendar to be delivered earlier than the target date for this project. There is a threat that the early release of a competitor's calendar may weaken the impact of the MNO Manufacturing Company calendar, thereby reducing the anticipated benefits of the Calendar project.
Which 2 statements should be recorded under the Risk tolerance heading?
A. The Project Board's threshold level of risk exposure is any combination of medium, high and very high impact, with high and very high probability.
B. The cost of all fallback plans must be contained within the project's tolerance.
C. Corporate management's threshold level of risk exposure is any combination of high and very high impact and probability.
D. The Project Manager's threshold level of risk exposure is low impact and probability.
E. The risk budget will have a tolerance of +/~ 10%.
Answer: A,B
Explanation:
Explanation/Reference:
Question Set 2
NEW QUESTION: 2
Which of the following is the process of developing a document that formally authorizes a project or a phase?
A. Create Work Breakdown Structure
B. Develop Project Charter
C. Develop Schedule
D. Define Scope
Answer: B
Explanation:
Explanation/Reference:
Explanation:
NEW QUESTION: 3
Residual income is often preferred over return on investment ROI as a performance evaluation because
A. The imputed interest rate used in calculating residual income is more easily derived than the target rate that is compared to the calculated ROI.
B. Residual income is a measure over time while ROI represents the results for a single time period.
C. Residual income concentrates on maximizing absolute amounts of income rather than a percentage return as with ROI.
D. Average investment is employed with residual income while year-end investment is employed with ROI.
Answer: C
Explanation:
Residual income concentrates on earnings in excess of the minimum desired return. With ROI, a segment may reject a project that exceeds Beds the minimum return if the project will decrease the segment's overall ROI. For example, a project that earns an ROI of 22%, which is greater than the target rate of 20%, might be rejected if the segment is currently earning 25%. because the project will decrease the segments ROI. This would not occur if performance was measured using residual income.