Task 7 PFMP Practice Questions (Page 6)

Questions 26–30

1. 26foundation · easy

   What is a portfolio component?

   • AA resource assigned to a project
   • BA single task within a project
   • CA project, program, or other related work grouped to facilitate effective management
   • DA strategic objective of the organization
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2. 27application · medium

   A portfolio manager at a nonprofit organization is reviewing the annual portfolio performance. The organization's strategy is to reduce homelessness in the community. The portfolio includes projects for affordable housing, job training, mental health services, and a fundraising campaign. The performance data shows that the affordable housing project is on track, but the job training project is behind schedule and the mental health services project is over budget. The fundraising campaign has exceeded its goals. What should the portfolio manager do to improve strategic alignment?

   • AIncrease the budget for the job training project to get it back on schedule.
   • BConduct a review of the portfolio to assess the alignment of each component with the strategy, and make adjustments to the job training and mental health projects.
   • CReallocate funds from the fundraising campaign to the mental health services project to address the budget overrun.
   • DReplace the mental health services project with a new project that is more likely to succeed.
   Reveal Solution Discussion Select an answer first
4. 28foundation · easy

   What is the role of stakeholder engagement in maintaining strategic alignment?

   • ATo ensure stakeholders support and contribute to portfolio decisions that align with strategy
   • BTo focus only on internal stakeholders
   • CTo delegate all portfolio decisions to stakeholders
   • DTo reduce the number of stakeholders involved
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5. 29expert · hard

   A portfolio manager at a logistics company is allocating resources across the portfolio. The company's strategy is to expand into new geographic regions while improving customer service. The portfolio includes: a project to open a new distribution center in Asia (high alignment, high resource demand), a project to upgrade the customer service platform (medium alignment, medium resource demand), and a project to optimize delivery routes (low alignment, low resource demand). The company has a limited number of logistics experts and IT staff. How should the portfolio manager allocate resources to best support the strategy?

   • AAllocate resources to the new distribution center and customer service platform projects, and assign only minimal resources to the route optimization project.
   • BAllocate resources proportionally to each project based on its strategic alignment score.
   • CAllocate resources equally across all three projects to ensure fairness.
   • DAllocate all available logistics experts and IT staff to the new distribution center project, as it has the highest strategic alignment.
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6. 30foundation · easy

   What is the primary purpose of strategic alignment in portfolio management?

   • ATo ensure that the portfolio's components collectively contribute to the organization's strategic goals
   • BTo ensure all portfolio components are completed within their original time and cost estimates
   • CTo maximize the financial return of each individual project within the portfolio
   • DTo minimize the number of projects in the portfolio to reduce complexity
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