Archive for February 2018

A French businessman has a meeting scheduled with a Brazilian to negotiate terms of a joint venture. The Frenchman prepares for the meeting in the way he always does when negotiating with French firms. The Frenchman assumes that the Brazilian will perceive and reason the way he does. What term best describes the Frenchman's mistake?

A French businessman has a meeting scheduled with a Brazilian to negotiate terms of a joint venture. The Frenchman prepares for the meeting in the way he always does when negotiating with French firms. The Frenchman assumes that the Brazilian will perceive and reason the way he does. What term best describes the Frenchman's mistake?



Answer: projective cognitive similarity

Jerry, a representing U.S. firm, is sent to Saudi Arabia to negotiate his company's contracts. Which of the following should Jerry keep in mind when negotiating with the Arabs?

Jerry, a representing U.S. firm, is sent to Saudi Arabia to negotiate his company's contracts. Which of the following should Jerry keep in mind when negotiating with the Arabs?




A. business should be conducted personally and not via telephone or email
B. Arabs value time and deadlines are to be kept at all costs
C. be explicit and express doubts wherever the subject's feasibility comes into question
D. get to the point when presenting and negotiating


Answer: A

The international business manager of Toro Automobiles, based in London, is currently in Indonesia negotiating with potential partners to set up a manufacturing plant. He is intrigued and startled by the lack of apprehension shown by every person he has met in standing close to him when greeting him. That is because the persons or the groups involved in the meeting are part of a ____________

The international business manager of Toro Automobiles, based in London, is currently in Indonesia negotiating with potential partners to set up a manufacturing plant. He is intrigued and startled by the lack of apprehension shown by every person he has met in standing close to him when greeting him. That is because the persons or the groups involved in the meeting are part of a ____________



Answer: high-contact culture

The executives from Carlo Foods, U.S. are in Japan to negotiate with Joeng, the head of a local investment firm. While Jeong listens to their plans, he realizes that there are considerable amounts of calculation errors in the market statistics involved in the plan. He starts showing signs of impatience and folds his hands, with a frown on his face. The executives realize that something is wrong and are confused about it. Jeong most likely belongs to a ___________

The executives from Carlo Foods, U.S. are in Japan to negotiate with Joeng, the head of a local investment firm. While Jeong listens to their plans, he realizes that there are considerable amounts of calculation errors in the market statistics involved in the plan. He starts showing signs of impatience and folds his hands, with a frown on his face. The executives realize that something is wrong and are confused about it. Jeong most likely belongs to a ___________




Answer: high-context culture

Which of the following is true about monochronic and polychronic cultures?

Which of the following is true about monochronic and polychronic cultures?




A. monochronic cultures experience time in a linear way; polychronic cultures view time as having a past, present, and future
B. monochronic cultures treat time as a tool for bringing order to life; polychronic cultures tolerate many events occurring simultaneously
C. monochronic cultures experience time in a nonlinear way; polychronic cultures focus on only one single event at a time
D. monochronic cultures tolerate many events occurring simultaneously; polychronic cultures treat time as a tool for bringing order to life


Answer: B

Josh, a tourist from the U.S. goes on a five-day trip to Japan. Apart from learning their rich history and heritage, he notices that people do not shake hands, but bow to each other. He is most likely to conclude that the Japanese have a __________

Josh, a tourist from the U.S. goes on a five-day trip to Japan. Apart from learning their rich history and heritage, he notices that people do not shake hands, but bow to each other. He is most likely to conclude that the Japanese have a __________



Answer: low-contact

Which of the following is one of the reasons that language frequently causes miscommunication during international business situations?

Which of the following is one of the reasons that language frequently causes miscommunication during international business situations?




A. frequent use of idioms with explanations
B. translating a local language too literally
C. speaking the local language with a native accent
D. conveying information using appropriate body language or symbols


Answer: B

In an interview, a British journalist asked a German athlete, "Are you a typical German?" When asked to clarify, the journalist explained that typical German loved machines, worked hard, and was dependable. This is an example of __________

In an interview, a British journalist asked a German athlete, "Are you a typical German?" When asked to clarify, the journalist explained that typical German loved machines, worked hard, and was dependable. This is an example of __________



Answer: stereotyping

Which of the following is true of the way Arabs view time?

Which of the following is true of the way Arabs view time?



A. deadlines and firm commitments are crucial to Arabs
B. Arabs view time as a valuable and limited resource
C. Arabs believe important decisions cannot be rushed
D. Arabs honor deadlines by all means




Answer: C

Managers from Italy and Mexico would most likely express their emotions openly during a business situation, while managers from England and Japan would most likely consider such behaviors unprofessional. Which of the following Trompenaar's value dimensions explains this difference in behavior?

Managers from Italy and Mexico would most likely express their emotions openly during a business situation, while managers from England and Japan would most likely consider such behaviors unprofessional. Which of the following Trompenaar's value dimensions explains this difference in behavior?




A. universalism versus particularism
B. neutral versus affective
C. specific versus diffuse
D. achievement versus ascription



Answer: B

The project sponsor wants to know the status of the project, and the amount of variance from plan, if any. The project manager has determined that the PV of the project is $800,000, the EV is $750,000, and the AC is $775,000. The project manager should tell the project sponsor that the project ________.

The project sponsor wants to know the status of the project, and the amount of variance from plan, if any. The project manager has determined that the PV of the project is $800,000, the EV is $750,000, and the AC is $775,000. The project manager should tell the project sponsor that the project ________. 




A. $25,000 ahead of schedule and $50,000 under budget
B. $50,000 ahead of schedule and $25,000 under budget
C. $25,000 behind schedule and $50,000 over budget
D. $50,000 behind schedule and $25,000 over budget


Answer: D

You are building a house. You need to estimate the costs for the foundation. You have the following data: 30 cubic yards (CY) of soil to be removed; 2,600 pounds of steel rebar to be installed; and 20 CY of concrete to be placed. Soil removal costs $100/CY; steel rebar cost $1.50/pound installed, and concrete costs $400/CY placed. Which of the following is the best estimate of the cost of building the foundation for the house?

You are building a house. You need to estimate the costs for the foundation. You have the following data: 30 cubic yards (CY) of soil to be removed; 2,600 pounds of steel rebar to be installed; and 20 CY of concrete to be placed. Soil removal costs $100/CY; steel rebar cost $1.50/pound installed, and concrete costs $400/CY placed. Which of the following is the best estimate of the cost of building the foundation for the house? 



A. $8,800
B. $14,900
C. $9,600
D. $12,400



Answer: B

The project manager wants to know how efficiently the project is using resources. He knows that the work currently accomplished is worth $32,000, the project should have completed work worth $48,000 by now, and the current spending stands at $44,000. Based on this information, the project manager determines that the project is ______.

The project manager wants to know how efficiently the project is using resources. He knows that the work currently accomplished is worth $32,000, the project should have completed work worth $48,000 by now, and the current spending stands at $44,000. Based on this information, the project manager determines that the project is ______. 





A. Performing over budget; for every $1 spent, the project is getting nearly 73 cents of value.
B. Performing under budget; for every $1 spent, the project is getting nearly $1.38 of value.
C. Performing exactly on budget; for every $1 spent, the project is getting $1 of value.
D. Performing over budget; for every $1 spent, the project is getting nearly 92 cents of value.


Answer: A

A construction project has an SPI of 1.05 and a CPI of 0.96. Based on this information, which of the following statements is most likely to be true?

A construction project has an SPI of 1.05 and a CPI of 0.96. Based on this information, which of the following statements is most likely to be true?




A. The project manager misjudged the local labor market and was not able to hire enough workers, and some machinery broke down requiring expensive repairs.
B. The project manager was able to find a new vendor who supplied materials for less than the original estimates, and process improvements helped shorten the schedule.
C. The project manager failed to manager stakeholders effectively, and community protests delayed the project, causing the project to consume fewer resources.
D. A subcontractor finished some tasks more quickly than estimated, and the project had to pay more for materials than originally estimated.



Answer: D

The project manager leading an IT project has determined that the planned value of a certain activity is $15,000. She has also determined that quality control for that activity will be 10 percent of that activity. Therefore, the project manager determines that the planned value of quality control for that activity is $1,500. Which of the following approaches for determining earned value has the project manager used?

The project manager leading an IT project has determined that the planned value of a certain activity is $15,000. She has also determined that quality control for that activity will be 10 percent of that activity. Therefore, the project manager determines that the planned value of quality control for that activity is $1,500. Which of the following approaches for determining earned value has the project manager used? 





A. Fixed formula, 0/100 rule
B. Percent complete
C. Apportioned value
D. 10/90 rule


Answer: C

A construction project is scheduled to take six months and cost $1.2 million to complete. After three months, the project has spent $575,000, and 55 percent of the project work has been completed. Assuming that the team's efficiency remains the same for the remainder of the project, what is the expected cost to finish all remaining project work?

A construction project is scheduled to take six months and cost $1.2 million to complete. After three months, the project has spent $575,000, and 55 percent of the project work has been completed. Assuming that the team's efficiency remains the same for the remainder of the project, what is the expected cost to finish all remaining project work?




A. -$25,000
B. $703,125
C. $1,043,478
D. $468,478


Answer: D

The project manager leading a factory renovation project internal to the organization has been asked to take life-cycle costs into account when making decisions that will affect the project. Which of the following statements should give the project manager the most cause for concern?

The project manager leading a factory renovation project internal to the organization has been asked to take life-cycle costs into account when making decisions that will affect the project. Which of the following statements should give the project manager the most cause for concern? 




A. The project team has consumed most of the project budget performing the work of the project.
B. The project team has made keeping short-term project costs low its highest priority.
C. The cost of operating and maintaining the factory exceeds the budget for the project.
D. The project team will be disbanded before maintenance on the factory will be required.



Answer: B

Which of the following statements concerning the cost baseline is not true?

Which of the following statements concerning the cost baseline is not true?



A. It is normally shown as an S-curve.
B. It is an output of the Determine Budget process.
C. It includes management reservces.
D. It relates period expenditures and cumulative expenditures to time.




Answer: C

An organization has purchased a large crane for a construction project expected to take 10 years to complete. The crane cost $250,000 to purchase and install. At the end of its life (10 years), it will have a scrap value of $50,000. Using straight-line depreciation, how much would you depreciate the crane, each year, if the expected long-term interest rate was 5 percent and the company used an IRR of 15 percent?

An organization has purchased a large crane for a construction project expected to take 10 years to complete. The crane cost $250,000 to purchase and install. At the end of its life (10 years), it will have a scrap value of $50,000. Using straight-line depreciation, how much would you depreciate the crane, each year, if the expected long-term interest rate was 5 percent and the company used an IRR of 15 percent?




A. $25,000
B. $200,000
C. $27,500
D. $20,000


Answer: D

The project sponsor asks the project manager to determine the cost performance needed with the remaining project resources in order to meet the project goal. The project is scheduled to take two years to complete and cost $1 million. Eight months into the project, $300,000 has been spent and 35 percent of the work has been completed. The project manager believes that the $1 million figure will remain viable for the remainder of the project. Which of the following answers would best help the project manager answer the sponsor's question?

The project sponsor asks the project manager to determine the cost performance needed with the remaining project resources in order to meet the project goal. The project is scheduled to take two years to complete and cost $1 million. Eight months into the project, $300,000 has been spent and 35 percent of the work has been completed. The project manager believes that the $1 million figure will remain viable for the remainder of the project. Which of the following answers would best help the project manager answer the sponsor's question?




A. TCPI=0.93
B. CPI=1.17
C. TCPI= 1.08
D. CPI=0.86



Answer: A

Which of the following statements concerning management reserves is true?

Which of the following statements concerning management reserves is true? 




A. They are typically controlled by the project manager.
B. They are not part of the cost baseline.
C. They are always included in an EV calculation.
D. They are set aside for known unknowns.


Answer: B

Senior management wants to know whether the project is currently over or under budget and by how much. The project manager has determined that the PV of the project is $875,000, the EV is $850,000, and the AC is $900,000. The project manager should tell senior management that the project is ___________.

Senior management wants to know whether the project is currently over or under budget and by how much. The project manager has determined that the PV of the project is $875,000, the EV is $850,000, and the AC is $900,000. The project manager should tell senior management that the project is ___________.



A. $25,000 over budget
B. $25,000 under budget
C. $50,000 under budget
D. $50,000 over budget




Answer: D

When the project charter was being prepared, the costs of the project could only be estimated to a rough order of magnitude; however, late in planning, as more details became available, it was possible to make a definitive estimate, which could be narrowed to a ______________ percent range.

When the project charter was being prepared, the costs of the project could only be estimated to a rough order of magnitude; however, late in planning, as more details became available, it was possible to make a definitive estimate, which could be narrowed to a ______________ percent range.




A. -5 to +10
B. -10 to +25
C. -1 to +5
D. There is no defined range.



Answer: A

The project manager and project team are attempting to determine how much it will cost to complete all project activities. Which of the following tools and techniques would they not use in the process in which they are engaged?

The project manager and project team are attempting to determine how much it will cost to complete all project activities. Which of the following tools and techniques would they not use in the process in which they are engaged? 



A. Funding limit reconciliation
B. Vendor bid analysis
C. Cost of quality
D. Project management software



Answer: A

What is the difference between costs and price?

What is the difference between costs and price?



A. Price includes inflation and cost does not.
B. Price minus cost equals cash flow, which is tied to the company's chart of accounts.
C. Cost is more accurate than price because it is based on the WBS.
D. Cost is the amount of money it will take to create the project, and price is an organizational business decision on what to charge for the project.




Answer: D

The project manager leading a training project is trying to decide on an approach for determining an earned value for the project management activities on the project. Which of the following approaches would be the best option for her to choose for these activities?

The project manager leading a training project is trying to decide on an approach for determining an earned value for the project management activities on the project. Which of the following approaches would be the best option for her to choose for these activities? 




A. Level of effort
B. Weighted milestones
C. Fixed formula, 50/50 value
D. Apportioned value



Answer: A

Cost risk means:

Cost risk means:




A. There are risks that will cost the project money.
B. The project is too risky from a cost perspective.
C. There is a risk that project costs could go higher than planned.
D. There is a risk that the cost of the project will be lower than planned.




Answer: C

You provide a project cost estimate for the project to the project sponsor. He is unhappy with the estimate because he thinks the price should be lower. He asks you to cut 15 percent off the project estimate. What should you do?

You provide a project cost estimate for the project to the project sponsor. He is unhappy with the estimate because he thinks the price should be lower. He asks you to cut 15 percent off the project estimate. What should you do? 




A. Start the project and constantly look for cost savings.
B. Tell all the team members to cut 15 percent from their estimates.
C. Inform the sponsor of the activities to be cut.
D. Add additional resources with low hourly rates.



Answer: C

Identified risks are:

Identified risks are: 



A. An input to the Estimates Costs process.
B. An output of the Estimate Costs process.
C. Not related to the Estimate Costs process.
D. Both an input to and an output of the Estimate Costs process.




Answer: D

Earned value measurement is an example of:

Earned value measurement is an example of:




A. Performance reporting.
B. Planning control.
C. Ishikawa diagrams.
D. Integrating the project components into a whole.



Answer: A

Although the stakeholders thought there was enough money in the budget, halfway through the project the cost performance index (CPI) is 0.7. To determine the root cause, several stakeholders audit the project and discover the project cost budget was estimated analogously. Although the activity estimates add up to the project estimate, the stakeholders think something was missing in how the estimate was completed. Which of the following describes what was missing?

Although the stakeholders thought there was enough money in the budget, halfway through the project the cost performance index (CPI) is 0.7. To determine the root cause, several stakeholders audit the project and discover the project cost budget was estimated analogously. Although the activity estimates add up to the project estimate, the stakeholders think something was missing in how the estimate was completed. Which of the following describes what was missing? 



A. Estimated costs should be used to measure CPI.
B. SPI should be used, not CPI.
C. Bottom-up estimating should have been used.
D. Past history was not taken into account.





Answer: C

A manufacturing project has a schedule performance index (SPI) of 0.89 and a cost performance index (CPI) of 0.91. Generally, what is the BEST explanation for why this occurred?

A manufacturing project has a schedule performance index (SPI) of 0.89 and a cost performance index (CPI) of 0.91. Generally, what is the BEST explanation for why this occurred?




A. The scope was changed.
B. A supplier went out of business and a new one needed to be found.
C. Additional equipment needed to be purchased.
D. A critical path activity took longer and needed more labor hours to complete.



Answer: D

A cost management plan contains a description of:

A cost management plan contains a description of: 




A. The project costs.
B. How resources are allocated.
C. The budgets and how they were calculated.
D. The WBS level at which earned value will be calculated.




Answer: D

A(n) ______ program includes plans to help employees cope with stress, burnout, substance abuse, health problems, and family issues that influence job performance.

A(n) ______ program includes plans to help employees cope with stress, burnout, substance abuse, health problems, and family issues that influence job performance. 





A. holistic wellness
B. employee engagement
C. counterproductive behavior
D. employee assistance
E. self-monitoring




Answer: D

You have important clients in town who want to have dinner with you, but your mother has a plumbing leak and has asked you to come over and shut off the water until she can get it fixed tomorrow. You are experiencing

You have important clients in town who want to have dinner with you, but your mother has a plumbing leak and has asked you to come over and shut off the water until she can get it fixed tomorrow. You are experiencing 




A. role ambiguity.
B. burnout.
C. learned helplessness.
D. role overload.
E. role conflict.



Answer: E

Chris believes that he was not promoted to professor at State University because of the university's desire to promote minorities and women to achieve greater diversity at higher ranks. Chris thinks he is experiencing

Chris believes that he was not promoted to professor at State University because of the university's desire to promote minorities and women to achieve greater diversity at higher ranks. Chris thinks he is experiencing 




A. reverse discrimination.
B. ethnocentrism.
C. an ethical dilemma.
D. diversity.
E. stereotyping.





Answer: A

The Americans with Disabilities Act requires employers to

The Americans with Disabilities Act requires employers to 



A. hire all qualified disabled persons who apply.
B. reasonably accommodate an individual's disability.
C. hire quotas of qualified disabled persons.
D. actively solicit job applications from disabled persons.
E. hire disabled persons to qualify for tax breaks.





Answer: B

Which of the following diversity issues is true in the U.S. workforce?

Which of the following diversity issues is true in the U.S. workforce? 





A. Unemployment among the disabled has dropped sharply since the introduction of the Americans with Disabilities Act.
B. Literacy has ceased to be an issue among American workers.
C. The median age of the American worker is increasing.
D. White households continue to have higher median incomes than Asian ones.
E. Among the top 500 U.S. companies, most currently do not yet offer domestic partner benefits for same-sex couples.



Answer: C

Miles impressed his boss by making lots of suggestions for department improvements and by putting in many weekend hours to do extra tasks to develop the new procedures. Miles is exhibiting

Miles impressed his boss by making lots of suggestions for department improvements and by putting in many weekend hours to do extra tasks to develop the new procedures. Miles is exhibiting 




A. self-efficacy.
B. onboarding traits.
C. organizational citizenship behaviors.
D. the halo effect.
E. counterproductive work behaviors.



Answer: C

Job satisfaction results in stronger ______ and lower levels of ______

Job satisfaction results in stronger ______ and lower levels of ______ 




A. job involvement; work-life balance.
B. motivation; life satisfaction.
C. organizational commitment; perceived stress.
D. perceived stress; life satisfaction.
E. perceived stress; absenteeism.




Answer: C

Julia really doesn't like her new boss and is not happy with the new tasks she's been assigned and the long hours she's been working. Still, she truly believes in what the company is trying to accomplish. Julia has

Julia really doesn't like her new boss and is not happy with the new tasks she's been assigned and the long hours she's been working. Still, she truly believes in what the company is trying to accomplish. Julia has 




A. poor job performance.
B. low job involvement.
C. low organizational commitment.
D. poor job enrichment.
E. low job satisfaction.




Answer: E

A waiter expects a group of poorly dressed customers to be stingy tippers and gives them poor service, so he gets the result that he expects, a very small tip. This is an example of the

A waiter expects a group of poorly dressed customers to be stingy tippers and gives them poor service, so he gets the result that he expects, a very small tip. This is an example of the 




A. halo effect.
B. self-fulfilling prophecy.
C. fundamental attribution bias.
D. self-serving bias.
E. selective perception error.





Answer: B

Tori has been telling everyone in the sales department of her incredible skill as a salesperson since she beat her goal this year by nearly 30%. But last year when she didn't even reach her goal, she said it was simply the economy. This is an example of the

Tori has been telling everyone in the sales department of her incredible skill as a salesperson since she beat her goal this year by nearly 30%. But last year when she didn't even reach her goal, she said it was simply the economy. This is an example of the 





A. halo effect.
B. self-fulfilling prophecy.
C. fundamental attribution bias.
D. self-serving bias.
E. selective perception error.



Answer: D

Brad was hiring a new financial analyst, and he had several good candidates. He was leaning towards hiring Kai, a Japanese American woman since he thinks Asians are better at math. Brad is exhibiting which distortion in perception?

Brad was hiring a new financial analyst, and he had several good candidates. He was leaning towards hiring Kai, a Japanese American woman since he thinks Asians are better at math. Brad is exhibiting which distortion in perception? 




A. Racism
B. The recency effect
C. A fundamental attribution error
D. Stereotyping
E. The halo effect



Answer: D

As an employee's age increases, his or her

As an employee's age increases, his or her 




A. job involvement decreases.
B. absenteeism increases.
C. job satisfaction increases.
D. work motivation decreases.
E. organizational commitment decreases.




Answer: C

Which of the following is not a step in the perceptual process?

Which of the following is not a step in the perceptual process? 


A. Selective attention.
B. Retrieving from memory to make judgments and decisions.
C. Causal attribution.
D. Interpretation and evaluation.
E. Storing in memory.






Answer: C

Which of the following is not one of the main ways to reduce cognitive dissonance?

Which of the following is not one of the main ways to reduce cognitive dissonance? 





A. Change your attitude.
B. Change your behavior.
C. Eliminate the self-serving bias.
D. Find consonant elements that outweigh the dissonant ones.
E. Belittle the importance of the inconsistent behavior.


Answer: C

Under which of the following circumstances would the desire to reduce cognitive dissonance be greatest?

Under which of the following circumstances would the desire to reduce cognitive dissonance be greatest? 




A. When large amounts of money are on the line.
B. When the individual has little control.
C. When the elements seem like an inconsequential ambiguity.
D. When there is little emotional investment in the situation.
E. When the components of attitude have no inconsistency.





Answer: A

If a manager knows one of her subordinates has low self-esteem and wishes to enhance it, she should

If a manager knows one of her subordinates has low self-esteem and wishes to enhance it, she should 




A. provide frequent reminders about improving weaknesses.
B. avoid delegating work to this subordinate.
C. redesign the work so that it is routine and structured.
D. avoid giving feedback.
E. express confidence in the employee's abilities to complete given tasks.




Answer: E

Wei is a manager of several subordinates who seem to be low in self-efficacy. In an effort to improve this, she should

Wei is a manager of several subordinates who seem to be low in self-efficacy. In an effort to improve this, she should 




A. let them learn new tasks independently.
B. give them simplistic jobs.
C. immediately create very challenging goals for them.
D. provide guided experiences and mentoring.
E. avoid giving positive feedback.



Answer: D

Cara's manager notices that she exhibits an internal locus of control when she speaks about her work. Her manager should

Cara's manager notices that she exhibits an internal locus of control when she speaks about her work. Her manager should 




A. give Cara a lot of positive feedback.
B. ensure that Cara has a highly structured job.
C. give Cara a job with much social contact with coworkers and customers.
D. closely supervise Cara's work.
E. provide an incentive structure to pay Cara.



Answer: E

How should a manager use personality tests?

How should a manager use personality tests? 





A. Use graphology tests to infer personality.
B. Create personality profiles of the desirable employee for different jobs.
C. Experiment with various personality tests that appear on the Internet.
D. Assess testing for any possible adverse impact on hiring women and minorities.
E. Avoid them, as they are illegal.


Answer: D

Jenna really enjoys mingling at work functions, both to the network for new contacts and simply to share stories with other interesting people. Jenna probably scores high in

Jenna really enjoys mingling at work functions, both to the network for new contacts and simply to share stories with other interesting people. Jenna probably scores high in 





A. emotional stability.
B. conscientiousness.
C. extroversion.
D. agreeableness.
E. openness to experience.




Answer: C

Millennials are more likely than older workers to

Millennials are more likely than older workers to 





A. be very independent.
B. focus exclusively on financial rewards.
C. appreciate a slower pace.
D. want more hands-on guidance.
E. be more patient in seeing the results of their work.




Answer: A
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