CPP Project Initiation & Business Case Development 3

Question 1

Which statement BEST describes the relationship between the project charter and the project management plan?

Accepted Answer

The project charter authorizes the project; the project management plan details how it will be executed

Answer

The project charter replaces the project management plan for small projects

Answer

The project management plan is created before the project charter

Answer

Both documents are created simultaneously during the planning phase

Question 2

An organization requires a payback period of no more than 3 years for capital investments. A proposed project has an estimated payback of 4.2 years. How should this finding be addressed?

Accepted Answer

The project should be rejected or redesigned to accelerate benefits realization

Answer

Proceed anyway because payback period is not the most important metric

Answer

Convert the calculation to NPV, which will likely show a shorter payback period

Answer

Extend the required payback threshold to 5 years for this project

Question 3

Which component of the business case describes the consequences of NOT undertaking the project?

Accepted Answer

Do-nothing analysis or base case

Answer

Scope definition

Answer

Risk register

Answer

Benefits map

Question 4

A project manager reviews an initial stakeholder register created during initiation. What is the MOST important reason to identify stakeholders this early?

Accepted Answer

To ensure early engagement and capture requirements that could affect project scope and success

Answer

To determine who will perform project tasks

Answer

To assign communication tools and platforms

Answer

To satisfy regulatory documentation requirements

Question 5

What is the PRIMARY purpose of conducting a SWOT analysis during project initiation?

Accepted Answer

To assess the internal and external environment to inform project strategy and risk identification

Answer

To assign budget contingency reserves

Answer

To create the project's quality management plan

Answer

To finalize the project schedule baseline

Question 6

During project initiation, the project manager identifies that a key regulatory approval has a lead time of 14 weeks. This information should be captured as a:

Accepted Answer

Project constraint

Answer

Quality standard

Answer

Team charter item

Answer

Procurement requirement

Question 7

Which of the following BEST describes the difference between a project mandate and a full business case in a structured project initiation process?

Accepted Answer

A mandate provides a brief initial justification to authorize further investigation; a business case provides detailed justification for full commitment

Answer

A mandate is created post-initiation; a business case is created pre-initiation

Answer

A mandate is only used for government projects; a business case is used in the private sector

Answer

A mandate replaces the business case when the project budget is below $100,000