A randomized 20 question test on procurement management KA of PMBoK

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Question 1 of 20

1. A Project manager is managing a Project to design a microchip for a client. He decides to subcontract the work to a microchip subcontractor. The subcontractor fails to deliver the work on time, and the Project manager invokes a penalty clause that was written into the contract. It is found that the person signing the contract for the contractor was less than twenty-one years of age when the contract was actually signed (the local law states that contract must be signed by persons "over 21" years of age - to render a contract valid).   What is the next option for the Project manager?
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Question 1 of 20

Question 2 of 20

2. A Project manager discovers that there is a part of the Project that contains some risk. His or her strategy with this risk is to subcontract the work to an outside supplier by using a firm fixed price contract. The Project manager should:
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Question 2 of 20

Question 3 of 20

3. You need to procure a High power transmitter for an Electronic component. Proposals have been called from three vendors A, B and C. You want to ensure that you get the best price for the specifications given for the Transmitter.

Which of the following actions will facilitate this Procurement objective the most?
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Question 3 of 20

Question 4 of 20

4. You have engaged a Subcontractor for a Construction work. The Subcontractor’s quality of work has been generally good. However the bills raised by him are according to his funding requirements, which are different from your earlier projections during the Contract finalization.
Which of the following is the best action for you as the Project Manager?
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Question 4 of 20

Question 5 of 20

5. You are performing a construction project for a client. A joint inspection has been agreed at site on a particular day to review the progress. You are present at the site, however, the stipulated client representative has not shown up as per the agreed schedule.

Which of the following is the best course of action for the Project Manager?
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Question 5 of 20

Question 6 of 20

6. Control Procurement is done to ensure that:
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Question 6 of 20

Question 7 of 20

7. The Project manager prepares a WBS by decomposing to a very large number of levels with accuracy. This would be most needed in case of which type of contract?
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Question 7 of 20

Question 8 of 20

8. A new car body design is underway, and body style is slated to be one of the more important criteria for buyer selections in the next buying season. The completion date for the Project is moved up to six months earlier than planned due to some market intelligence information received. This revision in schedule causes the Project manager to consider subcontracting part of the Project to an outside party. What is the most important consideration in making this decision?
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Question 8 of 20

Question 9 of 20

9. Which of the following would you least consider during a Make or Buy decision?
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Question 9 of 20

Question 10 of 20

10. You are providing a Service to a Buyer organization under a contract. In between the Contract, the CEO of the Buyer organization has changed and the organization has intimated that it will not proceed ahead with the Project, as the new CEO’s priorities have changed.
Which is the best course of action from your end?
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Question 10 of 20

Question 11 of 20

11. You, as a Project Manager, have been invited to be a part of the Procurement Committee to purchase Computers for your Project.

You come to know subsequently that a close acquaintance of yours is also bidding for the order. What is the best course of action for you?
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Question 11 of 20

Question 12 of 20

12. A contractor is working on a fixed price contract. About halfway through the contract, the Contractor’s Project manager informs the contract administrator that financial problems are making it difficult for the contractor to pay employees and subcontractors. The contractor asks for a partial payment for work accomplished. Which of the following actions by the buyer would most likely solve problems for the Project, also factoring the work done so far?
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Question 12 of 20

Question 13 of 20

13. Under what circumstances is it better for a contractor to subcontract?

Situation A. The subcontractor can perform the work at a lower cost than the     contractor.

Situation B. The work to be subcontracted represents almost the entire overall work effort.

Situation C. The subcontractor possesses special technical and engineering skills that the contractor does not have.

Situation D. The Project team members are not showing sufficient productivity because of morale problems in the company
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Question 13 of 20

Question 14 of 20

14. Sam, the project manager of AMZ project have floated the RFQ for a sub system that needs to be maintained for 3 years after which it will be decommissioned. Two proposals A and B have been short-listed and their financials are respectively, $ 20,000 license fee and a fee of $1000 per month for maintenance and $10,000 license fee and a fee of $2000 for maintenance. Who will you choose among A and B?

 
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Question 14 of 20

Question 15 of 20

15. When are Bidder conferences held?
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Question 15 of 20

Question 16 of 20

16. A company requires skilled electricians for a wiring jobs.
It wants to inspect the wiring done by the electricians periodically and ensure the best quality of work, as it is critical to the Company’s business operations.

Which type of contract is best in this context?
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Question 16 of 20

Question 17 of 20

17. You have awarded a FFP contract to a building contractor. Which one of the following measures is less suitable for measuring the progress in this context?
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Question 17 of 20

Question 18 of 20

18. You are a Project member in a country, where, unlike your home country and against the rules of your company for acceptance of any gift, there is a custom of giving presents during social occasions. You get invited to one of these social gatherings and have a costly gift presented to you by the client. What is the best course of action for you?
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Question 18 of 20

Question 19 of 20

19. All of the following could be a weighting criteria except:
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Question 19 of 20

Question 20 of 20

20. One of the Machines to be procured for the Project involves long lead times for import.

Which is the document wherein the Project Manager considers this constraint first in a Procurement Management Lifecycle?
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Question 20 of 20