Which of the following may be used as a risk mitigation tool

Assignment Help Management Theories

Reference no: EM13983599

Textbook - Project Management Certification EXAM GUIDE Third Edition by Joseph Phillips

Chapter 12- Managing Project Procurement

Questions

1. You are the project manager of the Adams Construction Project. Some of the work in the project contains pure risk that you're not willing to accept. You decided to mitigate the pure risks in this project. Which of the following may be used as a risk mitigation tool?

A. The vendor proposal

B. The contract

C. The quotation

D. Project requirements

2. You are the project manager for the 89A Project. You have created a contract for your customer. The contract must have what two things?

A. An offer and consideration

B. Signatures and the stamp of a notary public

C. Value and worth of the procured item

D. Start date and acceptance of start date

3. Britney is the project manager of the FTG Software Project. She's relying on the project scope to help her analyze the procurement needs of the project. The project scope statement can help a project manager create procurement details. Which one of the following best describes this process?

A. The project scope statement defines the contracted work.

B. The project scope statement defines the requirements for the contract work.

C. The project scope statement defines the contracted work, which must support the requirements of the project customer.

D. Both parties must have and retain their own copy of the product description

4. Yolanda has outsourced a portion of a project to a vendor. The vendor has discovered some issues that will influence the cost and schedule of its portion of the project. How must the agreement be updated?

A. As a new contract signed by Yolanda and the vendor.

B. As directed by the contract change control system.

C. As a memo and SOW signed by Yolanda and the vendor.

D. Project management contracts have clauses that allow vendors to adjust their work according to unknowns.

5. You are creating a new contract for some procured work in the project. Your manager wants you to define how issues and claims will be resolved including the possibility of any lawsuits related to the procured work. The United States backs all contracts through which of the following?

A. Federal law

B. State law

C. The court system

D. Lawyers

6. Terry is the project manager of the MVB Project. She needs to purchase a piece of equipment for her project. The accounting department has informed Terry that she needs a unilateral form of contract. Accounting is referring to which of the following?

A. The statement of work (SOW)

B. A legally binding contract

C. A purchase order

D. An invoice from the vendor

7. You are a project management consultant for the Hopson Company and you're working with them to determine the best vendor and contract choice for a portion of their project. The purpose of a contract is to distribute between the buyer and seller a reasonable amount of what?

A. Responsibility

B. Risk

C. Reward

D. Accountability

8. You are the project manager of the Communications Projects for your organization. Management has stressed that you use privity throughout this project. Privity is what?

A. The relationship between the project manager and a known vendor

B. The relationship between the project manager and an unknown vendor

C. The contractual, confidential information between customer and vendor

D. The professional information regarding the sale between customer and vendor

9. Sammy is the project manager of the DSA Project. He is considering proposals and contracts presented by vendors for a portion of the project work. Of the following, which contract is least risky to the DSA Project from Sammy's perspective?

A. Cost plus fixed fee

B. Cost plus percentage of cost

C. Cost plus incentive fee

D. Fixed-price

10. Bradley is the project manager of the Warehouse Remodeling Project for his company. He is in the process of determining which contracts to use in this project. His company is risk-averse, so the correct choice of contract is important to Bradley. Of the following contract types, which one requires the seller to assume the risk of cost overruns?

A. Cost plus fixed fee

B. Cost plus incentive fee

C. Lump-sum

D. Time and materials

11. Benji is the project manager of the PLP Project. He has hired an independent contractor for a portion of the project work. The contractor is billing the project $120 per hour plus materials. This is an example of what?

A. Cost plus fixed fee

B. Time and materials

C. Unit price

D. Lump-sum

12. Mary is the project manager of the JHG Project. She has created a procurement statement of work (SOW) for a vendor. What project component is the procurement statement of work based on?

A. The project scope statement

B. The work breakdown structure (WBS)

C. The scope baseline

D. The WBS dictionary

13. You are the project manager for a software development project for an accounting system that will operate over the Internet. Based on your research, you have discovered that it will cost you $25,000 to write your own code Once the code is written, you estimate you'll spend $3,000 per month updating the software with client information, government regulations, and maintenance. A vendor has proposed to write the code for your company and charge a fee based on the number of clients using the program every
month. The vendor will charge you $5 per month per user of the web-based accounting system. You will have roughly 1,200 clients using the system per month. However, you'll need an in-house accountant to manage the time and billing of the system, so this will cost you an extra $1,200 per month. How many months will you have to use the system before it is better to write your own code than to hire the vendor?

A. 3 months

B. 4 months

C. 6 months

D. 15 months

14. Henry has been negotiating with the ABN Contracting Company for two weeks regarding some procured work on the project. Henry has sent the ABN Contracting Company a letter of intent. This means what?

A. Henry intends to sue the ABN Contracting Company.

B. Henry intends to buy from the ABN Contracting Company.

C. Henry intends to bid on a job from the ABN Contracting Company.

D. Henry intends to fire the ABN Contracting Company.

15. Martha is the project manager of the MNB Project. She wants a vendor to offer her one price to do all of the detailed work. Martha will issue which type of document?

A. A Request for Proposal (RFP)

B. A Request for Information (RFI)

C. A proposal

D. An Invitation for Bid (IFB)

16. You are the project manager for your company and you have six vendors on your project. You've worked with the vendors collectively to organize and schedule their overlapping work, scope control, and changes within their contract requirements. You have created many procurement documents in this project. Which one of the following is true about procurement documents?

A. They offer no room for bidders to suggest changes.

B. They ensure receipt of complete proposals.

C. They inform the performing organization why the bid is being created.

D. The project manager creates and selects the bid.

17. You are the project manager of the SRQ City Network Project for your company. You will be managing the selection of several vendors to participate in this process and your project team wants to know when seller selection actually happens. In what process group does the select seller event happen?

A. Initiating

B. Planning

C. Executing

D. Closing

18. You have an emergency on your project. You have hired a vendor who is to start work immediately. What contract is needed now?

A. T&M

B. Fixed-price

C. Letter contract

D. Incentive contract

19. You are the project manager for a seller and are managing another company's project. Things have gone well on the project, and the work is nearly complete. There is still a significant amount of funds in the project budget. The buyer's representative approaches you and asks that you complete some optional requirements to use up the remaining budget. You should do what?

A. Negotiate a change in the contract to take on the additional work.

B. Complete a contract change for the additional work.

C. Gain the approval of the project stakeholder for the requested work.

D. Deny the change because it was not in the original contract.

20. There are some risks that you can do little about. In your most recent project, for example, a tornado has wrecked your construction project. The tornado is known as what?

A. A force majeure

B. A risk transference

C. Direct costs

D. An unknown unknown

Reference no: EM13983599

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