Project Portfolio Management: Master the Art of Project Prioritization and Selection

Question 1

In PPM, what is the primary criterion for evaluating and selecting projects for inclusion in the portfolio?

Accepted Answer

Project strategic alignment

Answer

Project cost

Answer

Project duration

Answer

Project complexity

Question 2

What is the primary role of a project portfolio manager?

Accepted Answer

To ensure alignment between projects and organizational objectives

Answer

To manage individual projects within the portfolio

Answer

To allocate resources across projects

Answer

To develop and maintain the project portfolio

Question 3

What is a key purpose of a project portfolio dashboard?

Accepted Answer

Provides real-time visibility into project progress and status

Answer

Tracks project milestones and deliverables

Answer

Manages project risks and issues

Answer

Facilitates project planning and estimation

Question 4

What is the primary goal of project portfolio balancing?

Accepted Answer

Achieving a balanced mix of projects aligned with strategic objectives

Answer

Optimizing resource allocation for projects

Answer

Mitigating project risks

Answer

Reducing project timelines

Question 5

What is the primary objective of establishing a portfolio charter?

Accepted Answer

To define the vision, scope, and goals of the portfolio

Answer

To outline the governance structure and decision-making processes

Answer

To prioritize and select projects for inclusion in the portfolio

Answer

To establish performance metrics and reporting mechanisms

Question 6

Which of the following best describes a Stage-Gate process in project portfolio management?

Accepted Answer

A structured approach involving defined stages and decision points

Answer

A technique used to identify and manage project risks

Answer

A method for initiating and planning individual projects

Answer

A tool for evaluating portfolio performance and outcomes

Question 7

Which of the following is not a fundamental element of effective portfolio governance?

Accepted Answer

Centralized decision-making and control

Answer

Stakeholder involvement and collaboration

Answer

Regular performance measurement and evaluation

Answer

Proactive risk management and mitigation

Question 8

What is the ultimate objective of project portfolio management?

Accepted Answer

To align projects with strategic goals and maximize portfolio value

Answer

To optimize individual project outcomes and deliverables

Answer

To minimize overall project costs and expenses

Answer

To ensure project completion within established timelines

Question 9

Which of the following is a fundamental objective of project portfolio management?

Accepted Answer

Prioritizing projects based on strategic alignment

Answer

Maximizing resource utilization

Answer

Minimizing risk across all projects

Answer

Monitoring the performance of individual projects

Question 10

Which tool is most suitable for visually representing the interconnectedness of projects within a portfolio?

Accepted Answer

Dependency matrix

Answer

PERT chart

Answer

Gantt chart

Answer

Work breakdown structure

Question 11

Which of the following is NOT a criterion used to evaluate projects for inclusion in a portfolio?

Accepted Answer

Project duration

Answer

Strategic alignment

Answer

Operational feasibility

Answer

Technical feasibility

Question 12

What is the role of risk management within project portfolio management?

Accepted Answer

Identifying and mitigating potential risks to project goals

Answer

Allocating resources to projects with high risk

Answer

Eliminating risks entirely

Answer

Transferring all risks to external stakeholders

Question 13

What is the primary objective of the project portfolio optimization process?

Accepted Answer

Maximizing the overall value of the portfolio

Answer

Minimizing the total portfolio cost

Answer

Reducing the duration of all projects in the portfolio

Answer

Achieving balanced resource allocation

Question 14

What is a key distinction between project management and portfolio management?

Accepted Answer

Portfolio management focuses on a collection of projects, while project management focuses on individual projects

Answer

Portfolio management is more strategic, while project management is more operational

Answer

Portfolio management involves more stakeholder engagement than project management

Answer

Portfolio management is less complex than project management

Question 15

Which tool is used to assess the alignment of a project portfolio with organizational strategy?

Accepted Answer

BCG matrix

Answer

Portfolio roadmap

Answer

Project charter

Answer

Risk register

Question 16

Which of the following is NOT a core component of project portfolio management?

Accepted Answer

Executing individual projects

Answer

Prioritizing and selecting projects

Answer

Optimizing the portfolio

Answer

Monitoring and controlling the portfolio

Question 17

A project portfolio consists of projects that are:

Accepted Answer

Aligned with strategic objectives and managed as a group

Answer

Duplicative and overlap significantly in scope

Answer

Unrelated and managed independently

Question 18

Which technique is commonly employed for prioritizing projects?

Accepted Answer

Weighted scoring model

Answer

Gantt chart

Answer

Work breakdown structure

Answer

Flowchart

Question 19

The systematic evaluation of a project portfolio's overall performance and value is referred to as:

Accepted Answer

Portfolio assessment

Answer

Risk analysis

Answer

Quality control

Answer

Project audit

Question 20

What is a benefit of effective project portfolio management?

Accepted Answer

Optimized resource allocation

Answer

Reduced project scope

Answer

Diminished stakeholder satisfaction

Answer

Increased project delays

Question 21

What is the primary aim of portfolio optimization?

Accepted Answer

Maximizing portfolio value while minimizing risk

Answer

Increasing project budgets

Answer

Reducing the number of projects in the portfolio

Answer

Accelerating project completion times

Question 22

What is the purpose of project portfolio governance?

Accepted Answer

Providing oversight and guidance to portfolio management

Answer

Conducting project audits

Answer

Executing projects in the portfolio

Question 23

A potential challenge encountered in project portfolio management is:

Accepted Answer

Stakeholder conflicts

Answer

Abundant resources

Answer

Strong project team cohesion

Answer

Minimal project complexity

Question 24

What is the recommended strategy for continual improvement in project portfolio management?

Accepted Answer

Regular portfolio reviews and adjustments

Answer

Infrequent portfolio monitoring

Answer

Ignoring project feedback

Answer

Resistance to change