PMP® Exam Questions – Chapter 2 Organizational Influences and Project Life Cycle


  1. You have just started a new position as a project manager with your new company. Upon starting your job you are informed by the line manager that all budgetary decisions rest with her and that all key project decisions will be her responsibility as well. Most likely, PMI would say you are functioning as a  ______________?
    a. Resource coordinator
    b. Project manager
    c. Functional expediter
    d. Project coordinator
  2. Two junior project managers who are working on the same project are having a heated discussion(an argument) on the difference between the project management life cycle and the project life cycle. The first project manager is saying there is essentially no difference between the two while the second project manager is saying that there is a significant difference between the two. While this debate is occurring, a senior vice president from your division interrupts the two and asks them the following question: "When the project is completed what is the expected lifetime of the deliverable?" Essentially, what is the vice president asking them?
    a. He is asking about the status of the project life cycle
    b. He is asking about the status of the project management life cycle
    c. He is asking about the status of the product
    d. He is trying to determine if they understand life cycle costing
  3. The executives are debating about whether to implement a PMO for their organization. One of the executives thinks that PMO means 'project management overhead' while others are wondering about the actual value it will bring to the organization. As a senior project manager, they bring you in to the meeting on a consultative basis to help them get their hands around what value the PMO brings the organization. All of the following answers are correct except:
    a. The PMO serves as a disciplinary organization for project managers
    b. The PMO helps the organization align its projects around strategic organizational objectives
    c. The PMO provides the organization with project management standards, methods, and procedures
    d. The PMO helps to mentor and train project managers within the organization
  4. All of the statements about the project life cycle are true except which of the following:
    a. The project life cycle consists of five distinct phases
    b. The project life cycle is different for every organization
    c. The project life cycle works with the project management life cycle to help meet project objectives
    d. The project life cycle can be modified depending on the needs of the project
  5. All of the following reasons elaborate why is it important for the project manager to consider stakeholder influence on a project, except for which of the following?
    a. The negatively impacted stakeholder can create significant road blocks for your project
    b. All the stakeholders control your budget
    c. Stakeholders may supply technical expertise or resources to your project
    d. Stakeholders provide many of the key requirements that need to be fulfilled for the successful completion of the project
  6. Projects can intersect with operations at various points in the ________________ lifecycle.
    a. Project
    b. Product
    c. Project management
    d. Process development
  7. The project team has been arguing about what should go into the project management plan. They've built the same product over a hundred times before and have always been bothered that the project management plan never seemed to get completed. They were determined to get it done right this time. The team has come to you for advice regarding the project management plan. The most appropriate response you can give them is:
    a. Use project phase concepts ; initiate, plan, execute, monitor & control, and close
    b. They need training in project management
    c. The ‘project’ is really operations
    d. Tell them to take direction from the PMO
  8. The portfolio manager from your division thought it might be helpful to the project teams if she delivered a short presentation on the elements in her portfolio. A number of team members, after receiving the e-mail announcement for the presentation, come to you and ask if this meeting is worth their time. After all isn’t a portfolio just a big project? As a Senior Project manager your best response would be:
    a. You’re right. The meeting probably would be a waste of your time
    b. Not really. A portfolio is a group of related projects managed together to achieve synergies between the projects and establish common methods and procedures.
    c. Not really. A portfolio can be a group of programs, projects, or sub-projects designed to help the organization meet specific business goals
    d. Not really. A portfolio is a collection of documents, methods, and procedures that help us manage projects
  9. You are the Project Managers of XYZ consultants. The Project team members are from Finance and HR departments. The team members report to Finance and HR Managers respectively, and you have limited control over them. What type of organizational hierarchy does XYZ consultants follow?
    a. Matrix organization
    b. Projectized organization
    c. Functional organization
    d. None of these.
  10. Which organization is closest to Functional organization?
    a. Weak Matrix organization
    b. Balanced Matrix organization
    c. Strong Matrix
    d. Projectized organization
  11. Which of the following is not a project?
    a. Running an election campaign for a political candidate.
    b. Building a bridge over a river.
    c. Pilot aircraft for a United flight.
    d. Writing a book on Project Management.


  1. D – Project coordinators have minimal decision authority on projects. Thus by PMI's definition of a PM, (you are authorized to commit resources and spend money) you are not an actual project manager. A resource coordinator is an HR function and' functional expediter' is a made-up term
  2. C – The first part of the question is a red herring. The VP is asking about the lifetime of the deliverable i.e. the product. This is a question about the product status.
  3. A – The PMO does not discipline project managers. Insubordination and other similar issues are the province of human resources, functional managers and senior management
  4. A – The project life cycle changes for every organization. The project management life cycle consists of five distinct process groups. PMBOK® Guide, 5th edition, pp 48-49
  5. B – If all the stakeholders control your budget, you're in trouble. Funding primarily comes from the sponsor/ senior management, who can be a potential stakeholder. PMBOK® Guide, 5th edition, p. 54
  6. B - Product lifecycle. PMBOK® Guide, 5th edition, p.12
  7. C - Since the project team has done the same thing a hundred times before, this is an assembly line process, which makes it operations
  8. C – A portfolio can be a group of projects, programs, subprojects, or any combination of the previous. PMBOK® Guide, 5th edition, p 9
  9. C. The team members report to Functional Managers. Please refer Organizational Structure topic from Organizational Influences chapter
  10. A. Weak matrix organizations have similar characteristics to Functional organizations. Please refer Organizational Structure topic
  11. C. Projects must be a unique endeavor. Piloting a flight is a regular day-today operation, and not a project. Please refer Project topic from Introduction topic