Pinto Pm2 Tif Ch07

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Project Management, 2e (Pinto)
Chapter 7 Risk Management

7.3 Multiple Choice

1) The difference between projects that fail and those that are ultimately successful has to do with: A) the plans that have been made to deal with problems as they arise. B) the fact that a successful project doesn't encounter problems. C) whether the project is for an internal or external customer. D) whether the problem is time- or budget-related.

Answer: A

2) Project risk is highest during the:
A) termination stage of the project life cycle.
B) concept stage of the project life cycle.
C) implementation stage of the project life cycle.
D) development stage of the project life cycle.
Answer: B

3) Project risk is lowest during the:
A) concept stage of the project life cycle.
B) implementation stage of the project life cycle.
C) termination stage of the project life cycle.
D) development stage of the project life cycle.
Answer: C

4) The period of highest risk impact for a project risk exists primarily in the: A) development stage of the project life cycle.
B) concept stage of the project life cycle.
C) implementation stage of the project life cycle.
D) termination stage of the project life cycle.
Answer: D

5) The greatest project risk occurs when:
A) the probability of the event is high and the consequences of the event are high. B) the probability of the event is high and the consequences of the event are low. C) the probability of the event is low and the consequences of the event are high. D) the probability of the event is low and the consequences of the event are low. Answer: A

6) The greatest project opportunity occurs when:
A) the project is in the concept phase.
B) the project is in the development phase.
C) the project is in the implementation phase.
D) the project is in the termination phase.
Answer: A

7) The amount a company has at stake in a project rises above the dollar value of opportunity in the: A) implementation phase.
B) development phase.
C) concept phase.
D) termination phase.
Answer: D

8) Risk and opportunity:
A) both increase throughout the project life cycle.
B) vary inversely throughout the project life cycle.
C) both decrease throughout the project life cycle.
D) do not vary throughout the project life cycle.
Answer: C

9) To protect his poultry from meteorites, the gentleman farmer made hard hats for each bird and installed a meteor detection system that opened umbrellas throughout the yard if a meteor were detected. The safety of his flock thus assured, the farmer was surprised when he read his latest issue of Risk Management Magazine and discovered that this event was: A) high in consequence and high in probability.

B) low in consequence and low in probability.
C) low in probability and high in consequence.
D) high in probability and low in consequence.
Answer: C

10) Jim knew instinctively that his professor wouldn't appreciate it if he brought his single scoop of vanilla ice cream into the lecture hall with him. He could almost hear the inevitable question, "Did you bring enough for everyone?" To avert such an embarrassment, he practically inhaled his frozen confection as he raced down the hall. He had eaten ice cream in this fashion before and knew he would soon have an ice cream headache, which could be described as: A) high in consequence and high in probability.

B) low in consequence and low in probability.
C) low in probability and high in consequence.
D) high in probability and low in consequence.
Answer: D

11) While thrilling, there is a chance that you would have an accident if you elected to drive on the Autobahn while blindfolded, an outcome that could be described as: A) high in consequence and high in probability.

B) low in consequence and low in probability.
C) low in probability and high in consequence.
D) high in probability and low in consequence.
Answer: A

12) Risk management is a:
A)...
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