CPP Project Initiation & Business Case Development

Question 1

Which document formally authorizes a project and grants the project manager authority to apply organizational resources?

Accepted Answer

Project Charter

Answer

Project Management Plan

Answer

Statement of Work

Answer

Business Case

Question 2

A project manager is asked to evaluate whether a proposed project is worth pursuing. Which tool BEST supports this decision by comparing expected benefits to anticipated costs?

Accepted Answer

Cost-Benefit Analysis

Answer

Earned Value Analysis

Answer

Monte Carlo Simulation

Answer

Critical Path Method

Question 3

During project initiation, a business case is developed. Which of the following is MOST important to include in a comprehensive business case?

Accepted Answer

Justification, expected benefits, and alignment to organizational strategy

Answer

Detailed work breakdown structure

Answer

Complete risk register with mitigation plans

Answer

Resource assignment matrix

Question 4

An organization uses Net Present Value (NPV) to select between competing projects. If Project A has an NPV of $450,000 and Project B has an NPV of $320,000, which should be selected and why?

Accepted Answer

Project A, because higher NPV indicates greater value creation

Answer

Project B, because lower NPV means lower risk

Answer

Project B, because it likely has a shorter payback period

Answer

Neither; NPV alone is insufficient for project selection

Question 5

Which type of feasibility study focuses on whether the organization has the technical expertise, equipment, and infrastructure to deliver the proposed project?

Accepted Answer

Technical feasibility

Answer

Financial feasibility

Answer

Operational feasibility

Answer

Legal feasibility

Question 6

A needs assessment is conducted before project initiation. What is the PRIMARY purpose of a needs assessment?

Accepted Answer

To identify and validate the underlying problem or opportunity the project will address

Answer

To assign resources to the project

Answer

To develop the project schedule baseline

Answer

To define the project's quality standards

Question 7

During project initiation, high-level risks and assumptions are documented. What is the MAIN reason assumptions are captured in the initiation phase?

Accepted Answer

To identify factors that could affect project viability if they prove false

Answer

To satisfy audit requirements

Answer

To define the project's communications plan

Answer

To assign risk owners across the project team