Question 1

One project factor that directly impacts a firm's internal operations is the:
A) Expected return on investment.
B) Financial risk.
C) Need to develop employees.
D) Impact on company's image.

Accepted Answer

The need to develop employees directly impacts a firm's internal operations as it requires investing in training, skill development, and human resource management. This can impact workforce productivity, organizational culture, and overall employee satisfaction, which ultimately affects the firm's operations. The other factors listed, such as expected return on investment, financial risk, and impact on company's image, may also indirectly impact internal operations but not as directly as the need to develop employees.

Question 2

Numeric project selection models,by their very nature,employ objective values.

Accepted Answer

False

Question 3

If a model can be applied successfully by people in all areas and levels of an organization,it is said to possess the trait of:
A) Capability.
B) Ease of use.
C) Flexibility.
D) Realism.

Accepted Answer

B

Question 4

Souder's project screening criterion of realism addresses the question:
A) How many workers will the project need?
B) Will the project work as intended?
C) Who are the stakeholders?
D) How often should the project team meet?

Accepted Answer

The criterion of realism addresses the question of whether the project will work as intended, taking into account any limitations or constraints that may affect its feasibility. This includes factors such as available resources, project objectives, and the scope and complexity of the project.

Question 5

An MBA redesign committee plans to spend a decade traveling the world to benchmark graduate programs at other universities.Regardless of the screening model being used,it will suffer from poor performance in the area of:
A) flexibility.
B) Capability.
C) Comparability.
D) Cost.

Accepted Answer

The poor performance in the area of cost is likely, as a decade of international travel to benchmark graduate programs will likely come with a high price tag.

Question 6

Quality risk refers to the chance that:
A) The project relies on developing new or untested technologies.
B) The firm's reputation may suffer when the product becomes available.
C) The well-being of the users or developers may decline dramatically.
D) The firm may face a lawsuit.

Accepted Answer

Quality risk specifically pertains to issues that could affect the perception or actual quality of the product or service being delivered, which in turn could harm the firm's reputation.

Question 7

One facet of risk in project screening is:
A) The change in manufacturing operations resulting from the project.
B) The initial cash outlay.
C) The potential for lawsuits or legal obligation.
D) The strategic fit of the project with the company.

Accepted Answer

The potential for lawsuits or legal obligation represents a facet of risk in project screening because it involves legal and financial uncertainties that can impact the project's viability and the company's reputation.

Question 8

Souder's model selection criterion that encourages ease of adaptation to changes in tax laws,building codes,among others,is called:
A) Ease of use.
B) Cost.
C) Capability.
D) Flexibility.

Accepted Answer

Souder's model selection criterion that encourages ease of adaptation to changes in tax laws, building codes, among others is called flexibility. This means that the model should be easily adaptable to changes in various external factors without needing major modifications or redesign.

Question 9

A writer estimates it will take three months to generate spiffy documents to accompany a seminal work in operations management.He grossly underestimates the time required and misses his deadline by two months.This estimate was:
A) Objective and accurate.
B) Subjective and accurate.
C) Objective and inaccurate.
D) Subjective and inaccurate.

Accepted Answer

The estimate given by the writer was based on their subjective perception of the time required to complete the task, and it turned out to be inaccurate as they missed the deadline by two months.

Question 10

A project screening criterion that allows the company to compare long-term versus short-term projects,projects with different technologies,and projects with different commercial objectives is:
A) Flexibility.
B) Ease of use.
C) Capability.
D) Realistic.

Accepted Answer

Capability as a project screening criterion allows a company to compare projects of different scales, durations, technologies, and objectives by assessing whether the company has the resources, technology, and expertise to undertake them.

Question 11

An internal operating issue in project screening and selection is:
A) Expected return on investment.
B) Change in physical environment.
C) Patent protection.
D) The chance that the firm's goodwill will suffer due to the quality of the finished project.

Accepted Answer

The answer of An internal operating issue in project screening...

Question 12

Which statement regarding project selection and screening criteria is BEST?
A) The most complete model in the world is still only a partial reflection of organization reality.
B) It is possible, given enough time and effort, to identify all relevant issues that play a role in project selection.
C) Decision models are either objective or subjective.
D) For many projects, more than 80% of the decision criteria are vital.

Accepted Answer

The statement that "The most complete model in the world is still only a partial reflection of organizational reality" is the best because it acknowledges the limitations of decision models and recognizes that project selection will always involve some degree of uncertainty or subjectivity. Option B is incorrect because it is not realistic to expect that all relevant issues can be identified, and option C is incorrect because decision models can be a mix of objective and subjective criteria. Option D is also incorrect because the percentage of vital decision criteria varies depending on the project and context.

Question 13

Every decision model contains both objective and subjective factors.

Accepted Answer

Objective factors are based on empirical data and measurable criteria, while subjective factors are based on personal opinion, beliefs, and values. Most decision models incorporate both types of factors to varying degrees.

Question 14

A commercial factor in project selection and screening might be:
A) A need to develop employees.
B) The likelihood that users of the project are injured.
C) The long-term market dominance.
D) The impact on the company's image.

Accepted Answer

The answer of A commercial factor in project selection and...

Question 15

An expert's opinion on an issue may be subjective but very accurate.

Accepted Answer

An expert's opinion is based on their knowledge and experience in a particular field, and while it may be subjective, it is likely to be more accurate than the opinion of a non-expert.

Question 16

An effective project selection model must reflect organizational objectives,including a firm's strategic goals and mission.

Accepted Answer

An effective project selection model should align with the overall strategic goals and mission of the organization to ensure that projects contribute to the overall success and growth of the company.

Question 17

A wedding planner allows $10,000 for flowers and three weeks to receive all RSVPs back from the list of 700 guests.Both estimates are correct within a fraction of a percent.We could describe this factoid as:
A) Numeric and subjective.
B) Numeric and objective.
C) Non-numeric and subjective.
D) Non-numeric and objective.

Accepted Answer

The answer of A wedding planner allows $10,000 for flowers...

Question 18

Which statement regarding project selection is BEST?
A) Organizational reality can be perfectly captured by most decision-making models.
B) Before selecting any project, the team should identify all the relevant issues that play a role in project selection.
C) Decision models must contain either objective or subjective factors.
D) Every decision model has both objective and subjective factors.

Accepted Answer

The answer of Which statement regarding project selection is BEST?
A)...

Question 19

A selection model that is broad enough to be applied to multiple projects has the benefit of:
A) Ease of use.
B) Comparability.
C) Capability.
D) Flexibility.

Accepted Answer

A selection model that is broad enough to be applied to multiple projects allows for comparability across projects. This means that different projects can be evaluated using the same criteria, making it easier to identify strengths and weaknesses and make informed decisions. While ease of use, capability, and flexibility are also benefits of a broad selection model, comparability is the most relevant in this context.

Question 20

Souder's project screening criterion that indicates an effective model must reflect organization objectives,including a firm's strategic goals and mission is called:
A) Realism.
B) Capability.
C) Comparability.
D) Ease of use.

Accepted Answer

Souder's project screening criterion that indicates an effective model must reflect organization objectives, including a firm's strategic goals and mission is called Realism. Therefore, option A is the correct choice. Option B (Capability) refers to the ability of the model to achieve stated objectives, option C (Comparability) refers to the ability to compare different models and option D (Ease of use) refers to how user-friendly the model is.

Quiz 3: Project Selection and Portfolio Management

One project factor that directly impacts a firm's internal operations is the:

Numeric project selection models,by their very nature,employ objective values.

If a model can be applied successfully by people in all areas and levels of an organization,it is said to possess the trait of:

Souder's project screening criterion of realism addresses the question:

An MBA redesign committee plans to spend a decade traveling the world to benchmark graduate programs at other universities.Regardless of the screening model being used,it will suffer from poor performance in the area of:

Quality risk refers to the chance that:

One facet of risk in project screening is:

Souder's model selection criterion that encourages ease of adaptation to changes in tax laws,building codes,among others,is called:

A writer estimates it will take three months to generate spiffy documents to accompany a seminal work in operations management.He grossly underestimates the time required and misses his deadline by two months.This estimate was:

A project screening criterion that allows the company to compare long-term versus short-term projects,projects with different technologies,and projects with different commercial objectives is:

An internal operating issue in project screening and selection is:

Which statement regarding project selection and screening criteria is BEST?

Every decision model contains both objective and subjective factors.

A commercial factor in project selection and screening might be:

An expert's opinion on an issue may be subjective but very accurate.

An effective project selection model must reflect organizational objectives,including a firm's strategic goals and mission.

A wedding planner allows $10,000 for flowers and three weeks to receive all RSVPs back from the list of 700 guests.Both estimates are correct within a fraction of a percent.We could describe this factoid as:

Which statement regarding project selection is BEST?

A selection model that is broad enough to be applied to multiple projects has the benefit of:

Souder's project screening criterion that indicates an effective model must reflect organization objectives,including a firm's strategic goals and mission is called: