Task 5 PFMP Practice Questions (Page 5)

Questions 21–25

1. 21foundation · easy

   What is the purpose of performance metrics in portfolio management?

   • ATo determine the number of meetings held by the portfolio governance board.
   • BTo calculate the exact profit of each project.
   • CTo measure the strategic alignment and performance of the portfolio.
   • DTo track the daily activities of project team members.
   Reveal Solution Discussion Select an answer first
2. 22foundation · easy

   Which of the following is an example of a stakeholder who can influence strategic alignment decisions?

   • AA competitor in the same market.
   • BA senior executive who sponsors the portfolio.
   • CA vendor who supplies office supplies.
   • DA project team member who performs tasks.
   Reveal Solution Discussion Select an answer first
4. 23foundation · easy

   What is the purpose of an alignment assessment in portfolio management?

   • ATo determine the exact cost of each portfolio component.
   • BTo evaluate how well each portfolio component supports the organization's strategic objectives.
   • CTo assign project managers to portfolio components.
   • DTo create a detailed schedule for each component.
   Reveal Solution Discussion Select an answer first
5. 24application · medium

   During a portfolio review, a key stakeholder from the sales department strongly advocates for a new customer relationship management (CRM) project, claiming it will boost revenue. However, the portfolio's strategic objectives focus on operational efficiency and cost reduction. What should the portfolio manager do?

   • AInclude the CRM project because stakeholder support is critical
   • BModify the strategic objectives to include revenue growth
   • CReject the CRM project outright because it does not align with current strategy
   • DEvaluate the CRM project against strategic objectives and present the analysis to the governance board
   Reveal Solution Discussion Select an answer first
6. 25expert · hard

   A portfolio manager is evaluating two projects for inclusion in the portfolio. Project X supports a strategic objective with a high potential benefit but requires a significant portion of the organization's limited budget. Project Y supports a lower-priority objective but has a high probability of success and requires fewer resources. The organization has a risk-averse culture and a tight budget. What is the most appropriate decision?

   • ASelect Project Y because it is lower risk and fits the budget
   • BSelect Project X because it has higher strategic value
   • CSelect both projects by reallocating resources from other components
   • DRecommend a phased approach for Project X, starting with a pilot
   Reveal Solution Discussion Select an answer first