Implement Governance Models to Drive Project Outcomes PMI-CP Practice Questions (Page 5)

Questions 21–25

1. 21application · medium

   A large infrastructure company is initiating a capital project to build a new manufacturing facility. The project involves multiple departments, significant regulatory oversight, and high financial stakes. The CEO wants to ensure clear decision-making authority and accountability. Which governance structure component is most critical to establish first?

   • AA detailed project schedule with milestones and dependencies
   • BA steering committee with defined escalation paths and decision rights
   • CA risk management plan with contingency reserves
   • DA project management office (PMO) to standardize reporting templates
   Reveal Solution Discussion Select an answer first
2. 22application · medium

   An energy company is managing a capital project to upgrade a power plant. The project requires close collaboration between engineering, procurement, and construction teams. The company wants to ensure that governance requirements are met while allowing for innovation in construction methods. Which project structure would best support this?

   • AProjectized structure with all resources dedicated to the project
   • BNo formal structure to allow maximum flexibility
   • CFunctional structure with each department working independently
   • DMatrix structure with dual reporting to functional and project managers
   Reveal Solution Discussion Select an answer first
4. 23foundation · easy

   In which project structure does the project manager have the highest level of authority over project resources?

   • AMatrix
   • BWeak matrix
   • CFunctional
   • DProjectized
   Reveal Solution Discussion Select an answer first
5. 24expert · hard

   A multinational corporation is planning a capital project to build a new factory in a foreign country. The project involves complex regulatory requirements, multiple international stakeholders, and significant investment. The company's governance structure must ensure compliance with local laws while maintaining corporate oversight. What is the most critical governance component to establish?

   • AA clear decision-making hierarchy that defines the authority of local and corporate leaders
   • BA comprehensive risk management plan for the foreign market
   • CA communication plan to keep all stakeholders informed
   • DA local advisory board to handle all regulatory issues
   Reveal Solution Discussion Select an answer first
6. 25application · medium

   A logistics company is implementing a new warehouse management system. The project has a fixed budget and a tight schedule, but the team has ideas for innovative features that could improve efficiency. The project manager must decide how to handle these ideas. What is the best approach?

   • AReject all innovative ideas to keep the project on track
   • BIncorporate all innovative ideas immediately to maximize value
   • CDefer all innovative ideas to a future project
   • DEvaluate each idea against project objectives and constraints, and implement those that add value without compromising the plan
   Reveal Solution Discussion Select an answer first