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APM PMQ practice questions

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Question 1Project management and the project context

Which characteristic best distinguishes a project from business as usual?

  1. It delivers a continuous service using established operational procedures
  2. It is temporary and creates a unique output Correct answer.
  3. It repeats each year within the same budget cycle
  4. It is owned and resourced by a single functional department

Explanation

A project is a temporary endeavour undertaken to create a unique product, service or result; its temporary nature and novelty are what generate uncertainty and the need for a dedicated management structure. Business as usual is ongoing, repetitive and delivered through the permanent line organisation.

Question 2Project management and the project context

A payroll team processes salaries every month in exactly the same way. Which characteristic shows that this is business as usual rather than a project?

  1. It carries significant uncertainty about the final outcome
  2. It delivers a repeatable service with predictable outputs Correct answer.
  3. It requires a temporary cross-functional team drawn from several departments
  4. It has a start and finish date agreed with a named sponsor

Explanation

Business as usual is characterised by ongoing, repeatable processes whose outputs and performance are predictable and managed through normal operational controls. Projects, by contrast, are finite, novel and therefore uncertain.

Question 3Project management and the project context

Which statement best describes a programme?

  1. The complete set of projects an organisation is currently running at any time
  2. A temporary organisation created to deliver one unique output for a customer
  3. A group of unrelated projects that share a single budget code and reporting line
  4. A group of related projects managed together to achieve beneficial change Correct answer.

Explanation

A programme is a group of related projects and change activities managed in a coordinated way to obtain benefits that could not be realised if the projects were managed individually. The emphasis is on coordinated benefit delivery rather than on a single output or on the whole organisational investment.

Question 4Project management and the project context

Which statement best describes a portfolio?

  1. The collection of work delivered by one functional department within a financial year
  2. A set of related projects that together deliver a single strategic benefit to the sponsoring business unit
  3. All of an organisation's projects and programmes, grouped to meet strategic objectives Correct answer.
  4. A temporary structure set up to coordinate the delivery of a single large project

Explanation

A portfolio is the totality of an organisation's investment in projects, programmes and related change, grouped so that it can be prioritised and balanced against strategic objectives. Portfolios need not be made up of related work, which distinguishes them from programmes.

Question 5Project management and the project context

The project sponsor's main responsibility is to:

  1. audit the project's financial records on behalf of the organisation's finance function
  2. own the business case and give senior direction and support to the project Correct answer.
  3. produce the detailed project schedule and control day-to-day progress against it
  4. carry out the specialist technical work packages assigned by the work package manager

Explanation

The sponsor is the senior owner of the business case who champions the project, secures resources and makes escalated decisions outside the project manager's authority. Day-to-day delivery, technical work and independent audit sit with other roles.

Question 6Project management and the project context

A project management office (PMO) typically exists to:

  1. take full accountability for delivering the output of each individual project
  2. manage the organisation's day-to-day operational service delivery
  3. provide standards, guidance and support to projects across the organisation Correct answer.
  4. act as the decision-making authority in place of the project sponsor

Explanation

A PMO supports delivery by setting and maintaining standards, providing tools, templates, assurance and advice, and consolidating reporting. Accountability for individual project outputs remains with the project manager and sponsor.

Question 7Project management and the project context

Project governance is best understood as:

  1. the technical review of deliverables undertaken by subject matter experts
  2. the set of financial controls imposed by the organisation's external auditors
  3. the framework of decision rights and oversight within which the project is directed Correct answer.
  4. the day-to-day supervision of the project team carried out by the project manager

Explanation

Governance defines who is empowered to make which decisions, how performance is monitored and how accountability is discharged throughout the project life cycle. It sits above day-to-day management and is broader than technical review or financial control alone.

Question 8Project management and the project context

A project manager maps stakeholders on a power/interest grid. How should a stakeholder with high power and high interest generally be managed?

  1. Kept informed with general progress updates only
  2. Managed closely and engaged actively in decisions Correct answer.
  3. Consulted only occasionally when issues arise
  4. Monitored with minimal communication effort

Explanation

Stakeholders who can significantly influence the project and who care strongly about its outcome need close, proactive engagement so that their expectations are understood and their influence is used constructively. Lower power or interest groups can be managed through informing, consulting or monitoring.

Question 9Project management and the project context

A project team is carrying out a PESTLE analysis of its context. Which of the following is a legal factor?

  1. A rise in the organisation's cost of borrowing from its main bank
  2. A shift in consumer preference towards more sustainable products
  3. New legislation limiting how long customer records may be stored Correct answer.
  4. The introduction of a new modelling software tool by a supplier

Explanation

PESTLE separates political, economic, social, technological, legal and environmental influences. Legislation and regulation governing what the project may do fall squarely within the legal category.

Question 10Project management and the project context

Which statement about the project life cycle is correct?

  1. It provides a structured sequence of phases used to control the project Correct answer.
  2. It removes the need for approval gate reviews between phases
  3. It applies only to projects delivered using a predictive or waterfall approach
  4. It guarantees that risks reduce steadily as the project passes through each phase

Explanation

The life cycle gives a framework of phases through which the project is authorised, planned, delivered and closed, providing points at which progress and continued viability can be reviewed. It applies to iterative and hybrid approaches as well as linear ones.

Question 11Project management and the project context

Which pair correctly distinguishes project success criteria from success factors?

  1. Criteria are agreed at project closure; factors are agreed during the initiation phase
  2. Criteria are the measures used to judge success; factors are the influences that make it more likely Correct answer.
  3. Criteria apply only to the project manager; factors apply only to the project sponsor
  4. Criteria are the day-to-day actions taken by the team; factors are the measures used to judge outcomes

Explanation

Success criteria are the agreed measures against which the project's outcome will be judged, such as time, cost, quality and benefits. Success factors are the conditions or behaviours, such as clear objectives or sponsor support, that increase the likelihood of meeting those criteria.

Question 12Project management and the project context

In a weak matrix organisation, the project manager typically:

  1. holds a permanent role with dedicated staff
  2. has little authority, with resources held by functional managers Correct answer.
  3. has full authority over resources and budget
  4. reports directly to the project board rather than to a functional line manager

Explanation

In a weak matrix the functional managers retain control of resources and priorities while the project manager coordinates, so authority is limited and often exercised through influence and negotiation. Authority increases as the structure moves towards a strong matrix or project-based organisation.

Question 13Project management and the project context

The business case for a project is primarily used to:

  1. justify the investment by showing that benefits outweigh costs and risks Correct answer.
  2. document the lessons learned from the project once it has closed
  3. record the detailed technical design of the solution to be built by the supplier
  4. list the tasks and resources required to complete each of the work packages

Explanation

The business case sets out the reasons for the investment, the options considered, the expected benefits and the costs and risks, and it is reviewed at decision gates to confirm the project remains worthwhile. Detailed design, work package planning and lessons learned are recorded in other documents.

Question 14Project management and the project context

Which statement about benefits in a project context is correct?

  1. Benefits are usually realised by the project team before the output is handed over to operations
  2. Benefits are another name for the success criteria agreed with the project board
  3. Benefits are the measurable gains created by the outputs, often realised after the project closes Correct answer.
  4. Benefits are the deliverables produced by the work packages and signed off by the sponsor

Explanation

Benefits are the measurable improvements that result from using the project's outputs, and they are frequently realised in the business after handover and closure. The project delivers outputs and outcomes; the sponsoring organisation is responsible for securing the benefits.

Question 15Project management and the project context

A sponsor asks the project manager to add scope without changing time, cost or quality. What is the most appropriate response?

  1. Refuse the change outright, as scope cannot be altered once baselined
  2. Accept the change and absorb the impact within the existing cost contingency
  3. Escalate the trade-off so time, cost or quality is adjusted accordingly Correct answer.
  4. Reduce the amount of testing to protect the agreed schedule

Explanation

Scope, time, cost and quality are interdependent, so additional scope must be offset somewhere in the baseline or the change rejected. The decision to rebalance the constraints belongs with the sponsor or change board, not with the project manager alone.

Question 16Project management and the project context

Which feature is most characteristic of a project-based organisation?

  1. Functional departments hold all authority over the resources assigned to projects
  2. Projects are coordinated informally by volunteers drawn from the operational teams
  3. Projects are run only when spare operational capacity is available to support them
  4. Projects are the primary unit of work, with dedicated teams and empowered managers Correct answer.

Explanation

In a project-based organisation the project is the main structural unit, staff are assigned to project teams, and project managers hold real authority over resources and decisions. This contrasts with functional structures where line managers control resources and projects are secondary.

Question 17Project management and the project context

A programme delivers a project that installs a new case-management system. Who normally holds accountability for realising the benefits?

  1. The project team, because they are the ones who implement the change in the business
  2. The programme or business change manager, not the project manager Correct answer.
  3. The project manager, because they deliver the output on which the benefit depends
  4. The PMO, because it monitors benefit tracking across the programme

Explanation

The project manager is accountable for delivering the output to scope, time and cost, while accountability for the realisation of benefits sits with the programme or business change role where the change is embedded into operations. Benefits realisation generally extends beyond the life of the project.

Question 18Project management and the project context

A project delivers a new case-management system, and staff subsequently handle cases 30 per cent faster. Which statement about output, outcome and benefit is correct?

  1. The benefit is realised only when the outcome creates a measurable organisational gain Correct answer.
  2. The outcome and the benefit are interchangeable terms in benefits management
  3. The output alone demonstrates that the project has delivered real value to the organisation
  4. Benefits are measured by the project manager at the point of handover

Explanation

The system is the output, faster case handling is the outcome, and the organisational gain that flows from it, such as reduced cost or improved service, is the benefit. Value is only demonstrated once the outcome produces that measurable gain in the business.

Question 19Project management and the project context

In a RACI model applied to project governance, which statement is correct?

  1. Every activity should have more than one person accountable to avoid single points of failure
  2. Only one person should be accountable for a given activity, while several may be responsible Correct answer.
  3. The person accountable for an activity must always also be the person responsible for doing it
  4. Those consulted about a decision are also accountable for the outcome of that decision

Explanation

RACI separates accountability, which must rest with a single named person so that decisions and outcomes are owned, from responsibility, which can be shared by those performing the work. Consulted and informed parties contribute to or receive information without owning the outcome.

Question 20Project management and the project context

Why do governance arrangements legitimately differ from one project to another?

  1. Because oversight should be proportionate to scale, risk and organisational context Correct answer.
  2. Because governance is determined solely by the total size of the project budget
  3. Because governance arrangements are set entirely by the project manager's personal preference
  4. Because governance is a legal requirement that is applied identically in all sectors

Explanation

Governance is applied proportionately so that the level of scrutiny, reporting and decision-making matches the scale, complexity, risk and regulatory setting of the work. A single fixed model for every project would either overburden small projects or under-control significant ones.

Question 21Project governance and organisation

What is the primary purpose of project governance?

  1. To complete the detailed project schedule
  2. To negotiate supplier payment terms
  3. To carry out the technical design work
  4. To set decision rights and accountability for the project Correct answer.

Explanation

Governance establishes the decision-making framework, roles, accountability and oversight for a project. Detailed planning, technical design and commercial negotiation are delivery activities performed within that framework.

Question 22Project governance and organisation

Which responsibility normally belongs to the project sponsor?

  1. Owning the business case and securing funding Correct answer.
  2. Resolving technical testing defects
  3. Chairing the daily team stand-up
  4. Maintaining the risk log on a daily basis

Explanation

The sponsor is the senior owner of the business case and is responsible for securing resources and funding. Technical defects, routine risk-log upkeep and daily team meetings sit with delivery roles.

Question 23Project governance and organisation

Which type of project management office typically provides templates and guidance with little authority to enforce compliance?

  1. Assurance PMO
  2. Supportive PMO Correct answer.
  3. Directive PMO
  4. Controlling PMO

Explanation

A supportive PMO offers templates, guidance and advice with low enforcement authority. Controlling and directive PMOs exercise progressively greater authority over projects.

Question 24Project governance and organisation

In a functional organisation structure, what is the typical authority of the project manager?

  1. Full authority over all project resources
  2. Limited, with decisions escalated to functional managers Correct answer.
  3. Delegated by the project board
  4. Shared equally with the sponsor

Explanation

In a functional structure, authority rests with functional managers and the project manager has limited control. Coordination is achieved largely through escalation and functional channels.

Question 25Project governance and organisation

Which characteristic best describes a balanced matrix organisation?

  1. Functional managers have no involvement in projects
  2. The project manager owns all project resources
  3. Authority is shared between the project and functional managers Correct answer.
  4. Staff are permanently assigned to a single project

Explanation

A balanced matrix divides authority between the project manager and functional managers. This contrasts with weak and strong matrices, where authority leans towards one side.

Question 26Project governance and organisation

What is the main responsibility of a project board?

  1. Performing independent audits of the project
  2. Managing the project team on a day-to-day basis
  3. Producing the detailed deliverables
  4. Providing direction and oversight on behalf of the organisation Correct answer.

Explanation

The project board provides direction, oversight and key decisions on behalf of the organisation. Delivery work, team management and independent audit are performed by other roles.

Question 27Project governance and organisation

In a RACI model, which description fits the person marked as accountable?

  1. Anyone kept informed of progress
  2. The person who answers for the outcome and approves the work Correct answer.
  3. The person who performs the task
  4. Anyone consulted for specialist advice

Explanation

Accountability sits with the single person who answers for the outcome and approves the work. Responsibility, consultation and information are separate roles within the model.

Question 28Project governance and organisation

A sponsor delegates decision-making authority to the project manager. What should accompany this delegation?

  1. A change to the organisation structure
  2. Clear limits and reporting requirements Correct answer.
  3. A reduced scope statement
  4. A transfer of business case ownership

Explanation

Delegation must be bounded by defined tolerances and reporting obligations so accountability remains visible. Scope, business case ownership and organisation structure are not automatic consequences.

Question 29Project governance and organisation

What is the primary purpose of a stage gate review?

  1. Re-baselining the schedule without approval
  2. Approving individual team timesheets
  3. Confirming continued viability and approving the next stage Correct answer.
  4. Replacing the need for project assurance

Explanation

A stage gate confirms that the project remains viable and authorises progression to the next stage. It does not remove the need for assurance or authorise routine administrative approvals.

Question 30Project governance and organisation

Which statement best distinguishes governance from management in a project?

  1. Governance and management are the same activity at different scales
  2. Governance is concerned only with financial accounting
  3. Governance sets direction and controls while management executes within it Correct answer.
  4. Governance delivers the work while management sets policy

Explanation

Governance sets direction, decision rights and controls; management executes the work within those boundaries. The two are complementary but not interchangeable.

Question 31Project governance and organisation

In a three-lines-of-defence model, what is the role of the second line?

  1. Setting the organisation's strategic objectives
  2. Providing oversight and challenge to management's controls Correct answer.
  3. Providing independent audit to the board
  4. Managing risks and controls in day-to-day delivery

Explanation

The second line provides oversight, challenge and specialist support on risk and control. The first line manages risk directly, and the third line gives independent assurance.

Question 32Project governance and organisation

Which accountability normally remains with the sponsor rather than the project manager?

  1. Controlling day-to-day changes
  2. Managing the project team
  3. Owning the business case and its benefits Correct answer.
  4. Producing the project plan

Explanation

The sponsor retains ownership of the business case and the realisation of benefits. Planning, team management and routine change control are normally delegated to the project manager.

Question 33Project governance and organisation

In a strong matrix organisation, how does the project manager's authority typically compare with a weak matrix?

  1. It is lower, with resources controlled entirely by functions
  2. It is limited to administrative reporting only
  3. It is greater, with more influence over resource allocation Correct answer.
  4. It is identical because matrix structures do not vary

Explanation

A strong matrix gives the project manager greater authority and more influence over resources than a weak matrix. Functional managers still retain a role, so control is shared rather than removed.

Question 34Project governance and organisation

A key feature of a projectised organisation is that:

  1. Projects are coordinated only through informal networks
  2. Project teams are dedicated and report to the project manager Correct answer.
  3. Staff remain in permanent functional departments
  4. Authority rests mainly with functional managers

Explanation

In a projectised structure, teams are dedicated to projects and report to the project manager, who holds substantial authority. Functional departments play a much smaller coordinating role.

Question 35Project governance and organisation

Which action best reflects good governance of stakeholder engagement?

  1. Delegating all engagement to the PMO
  2. Defining engagement responsibilities and reporting it to the board Correct answer.
  3. Limiting communication to formal written reports
  4. Engaging only stakeholders who support the project

Explanation

Good governance assigns clear engagement responsibilities and provides oversight through board reporting. Selective engagement and narrow communication channels undermine transparency.

Question 36Project governance and organisation

A project issue exceeds the project manager's delegated tolerance. What is the correct governance action?

  1. Resolve it by informal agreement with the supplier
  2. Escalate it to the sponsor or project board within defined limits Correct answer.
  3. Ignore it until the next stage gate
  4. Change the business case to remove the tolerance

Explanation

Issues outside delegated tolerance must be escalated through the defined governance route. Ignoring, altering the business case or informal resolution bypasses accountability.

Question 37Project governance and organisation

How does a project audit differ from a stage gate review?

  1. Both are performed by the project manager to approve deliverables
  2. An audit replaces the project board's decision-making role
  3. An audit gives independent assurance on compliance, while a gate authorises progression Correct answer.
  4. An audit authorises the next stage, while a gate checks compliance

Explanation

An audit provides independent assurance on compliance and controls, whereas a stage gate is a governance decision point authorising progression. They serve different purposes and are not substitutes.

Question 38Project governance and organisation

Who is normally accountable for realising project benefits after handover?

  1. The business owner or sponsor Correct answer.
  2. The project manager
  3. The PMO administrator
  4. The external supplier

Explanation

Benefits are normally realised in the business after handover, so accountability rests with the business owner or sponsor. The project manager's accountability generally ends at delivery.

Question 39Project governance and organisation

Which principle is most central to effective project governance?

  1. Clear accountability supported by transparent reporting Correct answer.
  2. Keeping decision-making informal and flexible
  3. Centralising all decisions with the project manager
  4. Maximising the number of approval meetings

Explanation

Effective governance depends on clear accountability and transparent reporting so decisions can be traced and challenged. Volume of meetings, informality and excessive centralisation do not provide that assurance.

Question 40Project governance and organisation

On a project board, which interests does the senior user role primarily represent?

  1. The organisation's audit function
  2. The needs of those who will use the outputs Correct answer.
  3. The project manager's delivery team
  4. The suppliers delivering the project

Explanation

The senior user represents the needs of the people who will use and benefit from the project outputs. Supplier interests and assurance are represented through other roles.

Question 41Stakeholder engagement and communication

In project management, which description best defines a stakeholder?

  1. A person or group affected by or interested in the project Correct answer.
  2. Only those who have invested money in the project and expect a financial return
  3. Only external customers who will receive and pay for the final product
  4. Only the members of the project delivery team and their direct line managers

Explanation

A stakeholder is any individual or group that can affect or is affected by the project, not only those with a financial or contractual role. Stakeholder identification should be broad enough to include internal and external parties.

Question 42Stakeholder engagement and communication

A stakeholder has high power but low interest in the project. Which approach does the power/interest grid recommend?

  1. Manage closely
  2. Keep informed
  3. Monitor
  4. Keep satisfied Correct answer.

Explanation

On the power/interest grid, high power combined with low interest calls for 'keep satisfied': provide enough information to maintain support without overwhelming them. 'Manage closely' is for high power and high interest.

Question 43Stakeholder engagement and communication

A project team has 8 members. Using the communication channels formula, how many communication channels exist within the team?

  1. 16
  2. 24
  3. 28 Correct answer.
  4. 56

Explanation

The number of communication channels is n(n−1)/2, so for 8 team members: 8 × 7 ÷ 2 = 28. Adding people increases the number of channels rapidly.

Question 44Stakeholder engagement and communication

What is the main purpose of stakeholder analysis?

  1. To decide the project budget and set the cost baseline for each work package
  2. To produce the project schedule and identify the critical path activities
  3. To assess stakeholder influence and interest so engagement can be planned Correct answer.
  4. To assign work to team members and agree their individual performance targets

Explanation

Stakeholder analysis examines influence, interest and impact so the project can decide how to engage each stakeholder. It informs the engagement plan rather than the budget, schedule or task allocation.

Question 45Stakeholder engagement and communication

Which content is normally defined in a project communication plan?

  1. The sequence of activities on the critical path and their float
  2. Who needs what information, when, in what format and through which channel Correct answer.
  3. The project's cost baseline, contingency reserves and funding release schedule
  4. The quality acceptance criteria for each deliverable and the testing approach

Explanation

A communication plan defines the audience, information needs, timing, format and channel for each communication. Cost, quality and schedule baselines are separate plans.

Question 46Stakeholder engagement and communication

What is the project sponsor's main contribution to stakeholder engagement?

  1. Approves detailed technical design decisions and signs off test results
  2. Manages the daily task allocation and performance reviews of the project team
  3. Maintains the project risk register and updates it at every team meeting
  4. Provides senior authority and champions the project with senior stakeholders Correct answer.

Explanation

The sponsor provides senior-level authority and support and often champions the project with senior stakeholders. Task allocation, risk register upkeep and technical design are normally delegated to other roles.

Question 47Stakeholder engagement and communication

A department head has high influence and openly opposes the project. How should the project manager classify and approach this stakeholder?

  1. Blocker or critic; engage early, understand concerns and address them Correct answer.
  2. Supporter; keep them informed mainly with positive progress messages
  3. Low-priority stakeholder; monitor them with occasional status updates only
  4. Neutral; no engagement is needed until the project closes

Explanation

A high-influence stakeholder who openly opposes the project is a blocker or critic and must be engaged early to understand and address their concerns. Ignoring or only monitoring them increases the risk of escalation and delay.

Question 48Stakeholder engagement and communication

A project manager must communicate an urgent, complex and ambiguous change to a key stakeholder. Which method is most appropriate?

  1. A monthly newsletter
  2. An email distribution list
  3. A formal written report
  4. A face-to-face meeting with discussion Correct answer.

Explanation

Face-to-face discussion is a rich channel suited to urgent, complex or ambiguous messages because it allows immediate feedback and clarification. Leaner written channels are better for routine or simple information.

Question 49Stakeholder engagement and communication

A project manager wants stakeholder input on possible options but will retain the final decision. Which engagement level is being used?

  1. Consult Correct answer.
  2. Empower
  3. Inform
  4. Collaborate

Explanation

Consulting means seeking stakeholder views and feedback on options while the project retains the decision. Informing is one-way, collaborating shares decision-making, and empowering delegates the decision.

Question 50Stakeholder engagement and communication

In the stakeholder engagement cycle, what normally follows identifying the stakeholders?

  1. Closing the project
  2. Publishing the final project report
  3. Analysing their interest, influence and impact Correct answer.
  4. Releasing the project budget

Explanation

The engagement cycle moves from identifying stakeholders to analysing their interest, influence and impact before planning and delivering engagement. Implementation and review follow the analysis and planning stages.