Project Management MCQ Quiz - Objective Question with Answer for Project Management - Download Free PDF

Last updated on Oct 19, 2023

Latest Project Management MCQ Objective Questions

Project Management Question 1:

The Delta model was created by

  1. Dean Wilde and Arnoldo Hax
  2. Micheal Porter
  3. J Juran
  4. Phillip Crossby

Answer (Detailed Solution Below)

Option 1 : Dean Wilde and Arnoldo Hax

Project Management Question 1 Detailed Solution

The Correct answer is Dean Wilde and Arnoldo Hax.

Key Points

  • The Delta Model, named after the Greek letter "Delta" symbolizing transformation and change, is a strategic management approach centered on customers.
  • In contrast to the traditional focus on product characteristics (product economics), this model places emphasis on consumer economics.
  • Its objective is to establish a robust connection between a company and its customers, as well as its complementary (other products and services within the same business ecosystem).
  • Dean Wilde and Arnoldo Hax developed this customer-centric model.
  • It originated during discussions among MIT alumni.
  • The Delta Model has sparked extensive research into the factors that drive long-term profitability for businesses.

Additional Information

  • The Delta Model can be visualized through the Strategic Triangle, comprising three key points: 
    • ​System Lock-in:
      • This point aims for market dominance and achieving complement share.
      • It shifts the focus from product-centered economics to broader system economics, making it highly sustainable.
      • System Lock-in ensures that customers become deeply integrated with the entire system.
    • Best Customer Solutions:
      • This point emphasizes cooperation and seeks to attain customer share.
      • By providing tailored solutions that precisely meet customer needs, a company can secure a strong customer base.
    • Best Product:
      • This point focuses on creating a superior product that outperforms competitors.
      • Having the best product can lead to increased market share by attracting customers seeking top-quality offerings.


Project Management Question 2:

Which of the following is NOT one of the objectives of Liberalisation?

  1. To develop a global market for a country
  2. To promote foreign trade and regulate imports and exports
  3. To boost competition between domestic businesses
  4. To mitigate the effects of the technology and foreign capital
  5. None of the above

Answer (Detailed Solution Below)

Option 4 : To mitigate the effects of the technology and foreign capital

Project Management Question 2 Detailed Solution

The correct answer is To mitigate the effects of technology and foreign capital.

Key Points

  • Liberalisation 
    • The phrase "liberalisation" refers to the removal of limitations on a range of private individual activities, frequently related to the economy.
    • Commonly, it refers to a government removing constraints it had previously put on economic or social policy.
    • India's economic reform was aided by its 1985 balance of payments crisis.
    • Due to the crisis, the nation was unable to cover both its debt obligations and necessary imports.
    • Liberalization in India was started by ministers like Atal Bihari Vajpayee, Manmohan Singh, and P.V. Narasimha Rao.
    • Objectives of Liberalisation
      • To address the growing balance of payment crisis in India.
      • To increase the private sector's involvement in the growth of India's economy.
      • To boost the amount of foreign investment made in Indian enterprises.
      • To encourage domestic Indian corporate competitiveness.
      • To encourage domestic and international businesses to grow in order to maximise India's economic potential.
      • To help the Indian economy transition to a global economy.
      • To control imports and export and encourage international trade.

Additional Information

  • Although there had been unsuccessful attempts in 1966 and 1980, India's liberalisation project ultimately took off in 1991.
  • The idea of economic liberalisation was adopted in India in order to achieve a number of goals, including industrialisation, a greater role for private and international investment, and the establishment of a free market economy.
  • A number of important industries that were previously only accessible to the public sector have reduced their restrictions for private companies.
  • After the introduction of liberalisation, India experienced the following improvements:
    • All prohibitive barriers to international investing were eliminated. 
    • In India and other large countries, capital flowed unrestrictedly
    • Ever since the economy was liberalised, the Indian stock market has increased.
    • Politics-related dangers decreased.
    • The investors were spread out.

Project Management Question 3:

Which of the following is said to be an external risk factor for an entrepreneur?

  1. Employee risk
  2. Innovation risk
  3. Strategic risk
  4. None of the above
  5. More than one of the above.

Answer (Detailed Solution Below)

Option 1 : Employee risk

Project Management Question 3 Detailed Solution

External Risk Factors:

External risks often include economic events that arise from outside the corporate structure.

External events that lead to external risk cannot be controlled by a company or cannot be forecasted with a high level of reliability.

Following are the types of external risks include economic factors, natural factors, and political factors

1. Economic Risk: Economic risk includes changes in market conditions.

2. Natural Risk: Natural risk factors include natural disasters (such as earthquakes, floods, etc)

3. Political Risk: Political risk is comprised of changes in the political environment or governmental policy that relate to financial affairs. Changes in import and export laws, tariffs, taxes, and other regulations all may affect a business negatively.

4. Technological Risk: This faces obstacles to growth performance due to the lack of technological mastery, lack of human resources, no focus on business, and impartial government policies.

Project Management Question 4:

Match List I with List II


(Project Network concepts)


(Underlying meaning)

A. Crashing an activity I. Length of the longest path through the project network
B. Project Network II. It shows the time and cost when the activity is fully crashed
C. Critical path III. It consists of a number of nodes and a number of arcs that connects two different nodes
D. Crash point IV. Taking special (costly) measures to reduce the duration of an activity below its normal value

Choose the correct answer from the options given below:

  1. A - II, B - IV, C - III, D - I
  2. A - IV, B - III, C - I, D - II
  3. A - IV, B - III, C - II, D - I
  4. A - III, B - I, C - IV, D - II

Answer (Detailed Solution Below)

Option 2 : A - IV, B - III, C - I, D - II

Project Management Question 4 Detailed Solution

The correct answer is A - IV, B - III, C - I, D - II.

Key Points

The correct sequence is:

A. Crashing an activity - IV. Taking special (costly) measures to reduce the duration of an activity below its normal value
Crashing an activity refers to the process of shortening the duration of an activity in a project. It involves taking special measures, which can be costly, to expedite the completion of the activity. These measures may include adding more resources, working overtime, or using specialized equipment to accelerate the work. Crashing an activity allows for a shorter overall project duration but often comes with additional costs.

B. Project Network - III. It consists of a number of nodes and a number of arcs that connect two different nodes
A project network is a graphical representation of the activities and their dependencies within a project. It consists of nodes, which represent the activities, and arcs, which connect the nodes to show the logical sequence and dependencies between the activities. The project network helps visualize the flow of work and the relationships among activities, aiding in project planning, scheduling, and monitoring.

C. Critical path - I. Length of the longest path through the project network
The critical path in a project network is the longest path from the project's start to its end. It determines the minimum amount of time required to complete the project. Any delay in activities along the critical path will directly impact the overall project timeline. Identifying the critical path is essential for project scheduling and resource allocation, as it helps in prioritizing activities that are critical for the project's timely completion.

D. Crash point - II. It shows the time and cost when the activity is fully crashed
The crash point represents the time and cost associated with fully crashing an activity in a project. Fully crashing an activity means reducing its duration to the shortest possible time by applying all available resources and measures. The crash point helps in evaluating the impact of crashing activities on project timelines and costs. It provides insights into the trade-offs between time and cost when accelerating specific activities in a project.

Hence, the correct answer is A - IV, B - III, C - I, D - II.

Project Management Question 5:

What are the characteristics of job shop production ?

A. Different product types are produced

B. Very large quantities are produced

C. Single type of product is produced

D. Low quantities of product are produced

  1. A and B
  2. C and D
  3. B and C
  4. A and D

Answer (Detailed Solution Below)

Option 4 : A and D

Project Management Question 5 Detailed Solution


Job – shop production

  • Job – shop production is characterized by the manufacturing of a large variety of products in small quantities that are designed and produced as per specifications are given by customers
  • The main feature of this production system is that it is highly flexible
  • A shop – shop comprises general-purpose machines arranged in different departments
  • Example – Manufacture of aeroplanes and oil field equipment, machine tools, giant hydro turbine, rolling mills, and other heavy equipment


Batch production

  • Batch production is a type of production in which the job passes through the functional departments in batches and each batch may have a different routing
  • Batch production is characterized by the manufacture and stocking of a limited number of products at regular intervals, awaiting sales
  • Example – Machine tools, pumps, compressors, stationary IC engines, etc.


Mass production

  • In mass production, the same type of product is manufactured to meet the continuous demand of the product
  • Manufacturing of discrete components or assemblies in a very large volume is called mass production
  • Machines are arranged in a line according to the sequence of operations on the product
  • Example – Nuts, bolts, screws, washers, pencils, matches, engine blocks, bicycles, electric motors, sewing machines, tractors, etc.


F1 S.S. N.J 19.07.19 D 2

Top Project Management MCQ Objective Questions

Planning is often called the primary management function because it:

  1. Creates the vision for the organizational members
  2. Sets the tone for the organizational culture
  3. Establishes the basis for all the other functions
  4. Offers some basis for future decision making

Answer (Detailed Solution Below)

Option 3 : Establishes the basis for all the other functions

Project Management Question 6 Detailed Solution

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The correct answer is Establishes the basis for all the other functions.

  • Planning is often called the primary management function because it establishes the basis for all the other functions.

Key Points

  • The management process consists of four primary functions that managers must perform:
    • planning
    • organizing
    • leading
    • controlling
  • Planning is often called the primary management function:
    • Planning means defining performance goals for the organization and determining what actions and resources are needed to achieve the goals.
    • Through planning, management defines what the future of the organization should be and how to get there.
    • It establishes the basis for all the other functions.
    • A strategic plan bridges the gap between what an organization is and what it will become.
    • A tactical plan defines what has to be done, who will do it, and the resources needed to do it.

Crashing is

  1. Abandoning the project
  2. Completing the project with all possible haste
  3. Reduction of duration for a few of the activities
  4. Reducing the cost of the project with all needful modifications

Answer (Detailed Solution Below)

Option 3 : Reduction of duration for a few of the activities

Project Management Question 7 Detailed Solution

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Crashing is the method for shortening the project duration by reducing the time of one or more critical activities to less than their normal time. In crashing if cost increases then time decreases.

F1 S.C 29.7.20 Pallavi  2

The application of Special purpose material handling equipment is:

  1. Both 'Process layout' and ' Line layout'
  2. Process layout
  3. Line layout
  4. None of these

Answer (Detailed Solution Below)

Option 3 : Line layout

Project Management Question 8 Detailed Solution

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The special-purpose material handling equipment is used in the line layout. Line layout is also known as product layout.

Process Layout:

The process layout is recommended for batch production. All machines performing a similar type of operation are grouped at one location in the process layout e.g., all lathes, milling machines, etc. are grouped in the shop will be clustered in like groups.

Process layout is normally used when the production volume is not sufficient to justify a product layout.

Product Layout:

It is also known as line layout. In implies that various operations on raw material are performed in a sequence and the machines are placed along the product flow line i.e. machines are arranged in the sequence in which the raw material will be operated upon.

This type of layout is preferred for continuous production i.e. involving a continuous flow of in-process material towards the finished product stage.

RRB JE ME 40 14Q IM Part 3 Hindi - Final Diagrams Deepak images Q5

What is the first and most important function of management?

  1. Planning 
  2. Controlling
  3. Surveying
  4. Scheduling

Answer (Detailed Solution Below)

Option 1 : Planning 

Project Management Question 9 Detailed Solution

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  • Management is a set of principles relating to the set of functions of planning, organizing, directing, and controlling, and the application of these principles in harnessing physical, financial, human, and informational resources efficiently and effectively to achieve organizational goals. 

Functions of Management

  1. Planning: It is a function of determining in advance what is to be done and what is to do it. It is the first and most important function of management.
  2. Organizing: It is the management function of assigning duties, grouping tasks, establishing authority, and allocating resources required to carry out a specific plan
  3. Staffing: It is a function to make sure the right people with the right qualification are available at the right place and time to accomplish the goals of the organization.
  4. Directing: It involves leading, influencing, and motivating employees to perform the tasks assigned to them.
  5. Controlling:  It is a function of monitoring organizational performance towards the attainment of organizational goals.

______ is a manufacturing philosophy that emphasizes careful scheduling of work, on-time delivery Of zero-defect supplies, and a highly skilled workforce.

  1. PERT
  2. MRP
  3. EOQ
  4. JIT

Answer (Detailed Solution Below)

Option 4 : JIT

Project Management Question 10 Detailed Solution

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JIT is associated with Japanese management techniques. It is known as just-in-time production (JIT) is a set of principles and practices based on the philosophy that firms should hold little or no inventory beyond that required for immediate production or distribution.

JIT consists of different operations such as,

  • Carefully scheduling
  • on-time delivery 
  • Zero defects
  • Skilled workforce

Additional Information

Other Manufacturing phylosophies

PERT stands for Program Evaluation and Review Technique and was developed to address the needs of projects for which the time and cost estimates tend to be quite uncertain.

  • It has a probabilistic approach and hence suitable for the projects which are to be conducted for the first time or projects related to research and development.
  • PERT uses 3 cases:
    • Optimistic time  estimates the shortest possible time required for the completion of the activity
    • Most likely time  estimates the time required for the completion of activity under normal circumstances
    • Pessimistic time  estimates the longest possible time required for the completion of the activity



The ordering quantity Q* at which holding cost becomes equal to ordering cost and the total inventory cost is minimum is known as Economic Order Quantity (EOQ).

At EOQ, Ordering cost = Holding cost

\(\frac{D}{{{Q^*}}}{C_o} = \frac{{{Q^*}}}{2}{C_h} \Rightarrow {Q^*} = \sqrt {\frac{{2D{C_o}}}{{{C_h}}}} \)

where D = Annual or yearly demand for inventory (unit/year), Q = Quantity to be ordered at each order point (unit/order), Co = Cost of placing one order [Rs/order], Ch = Cost of holding one unit in inventory for one complete year [Rs/unit/year]

Materials requirements planning (MRP) 

  • It is a simple system of calculating arithmetically the requirements of the input materials at different points of time based on the actual production plan.
  • It can be seen from the figure that an MRP system has three major input components:

RRB JE ME 40 14Q IM Part 3 Hindi - Final Diagrams Deepak images Q8

Who has invented the SWOT analysis?

  1. Albert S. Humphrey
  2. Peter Pyhrr
  3. Philip Kotler
  4. Peter Drucker

Answer (Detailed Solution Below)

Option 1 : Albert S. Humphrey

Project Management Question 11 Detailed Solution

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The correct answer is Albert s Humphery

Key Points

  •  SWOT analysis:
    • SWOT stands for Strengths, weaknesses, opportunities, and threats.
    • It is also called a SWOT matrix.
    • The strategy is historically credited to Albert Humphrey in the 1960s, but this attribution remains debatable.  There is no universally-accepted creator. 
    • SOFT is an acronym for satisfaction, opportunities, faults, and threats.

Important Points

  • Peter Pyhrr​He has developed ZBB (zero-based Budgeting).
  • Philip Kotler He is known for his definition of Marketing Mix and is regarded as the father of modern marketing.
  • Peter Drucker: He has written the Book The practice of management and is described as the founder of modern management.
  • He coined the term Knowledge Worker in 1959.

The market price per share of a company is Rs. 125. The dividend per share (DPS) is Rs 12 and DPS is expected to grow at a constant rate of 8% per annum. The cost of the equity capital to company will be

  1. 17.6%
  2. 15.4%
  3. 13.2%
  4. 11.8%

Answer (Detailed Solution Below)

Option 1 : 17.6%

Project Management Question 12 Detailed Solution

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\(Cost\;of\;equity = \frac{{DP}}{{MPS}} + r\)



Market price per share = Rs 125, Dividend per share = Rs 12, Rate = 8 % = 0.08


\(Cost\;of\;equity = \frac{{DP}}{{MPS}} + r\)

\(\therefore Cost\;of\;equity = \frac{{12}}{{125}} + 0.08\)

Cost of equity = 0.096 + 0.08 = 0.176

Thus, the cost of equity = 17.6%

What is the prime responsibility of the site management?

  1. Implement safety rules
  2. Training for site persons
  3. Conduct field quality audit
  4. Establishment of work permit system

Answer (Detailed Solution Below)

Option 1 : Implement safety rules

Project Management Question 13 Detailed Solution

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Site Management:

  • It is a professional service that provides a project’s owner with effective management of the project's schedule, cost, quality, safety, scope, and function.
  • Site management is compatible with all project delivery methods.
  • It is undertaken as the last phase of the remedial program at a site which continues after a certificate of completion is issued.
  • For any site management Implementing safety rules is a prime responsibility.

Other responsibilities of Site Management:

  • Plan and Develop the Project Idea
  • Create and Lead Team
  • Monitor Project Progress and Set Deadlines
  • Solve Issues
  • Manage finance
  • Ensure Stakeholder Satisfaction
  • Evaluate Project Performance

With reference to problem solving, fixation refers to 

  1. Focused approach to problem solving 
  2. Planned approach to problem solving 
  3. Inability to see a problem from a fresh perspective
  4. An ability to comprehend the goals to be achieved

Answer (Detailed Solution Below)

Option 3 : Inability to see a problem from a fresh perspective

Project Management Question 14 Detailed Solution

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Problem-solving is the act of defining a problem; determining the cause of the problem; identifying, prioritizing, and selecting alternatives for a solution; and implementing a solution.

There are 4 steps to solve the problem:

Step 1: Understand the problem.

Step 2: Devise a plan (translate).

Step 3: Carry out the plan (solve).

Step 4: Look back (check and interpret).

Fixation - Inability to see a problem from a fresh perspective. This impedes problem-solving, Two examples of fixation are mental set and functional fixedness.

CPM method of network analysis is

1. Ideally suited for linearly extending works

2. Meant essentially for research and development activities.

3. Activity-oriented

4. Used for planning, scheduling and controlling purposes

  1. 1 and 2 only
  2. 2 and 3 only
  3. 3 and 4 only
  4. 1 and 4 only 

Answer (Detailed Solution Below)

Option 3 : 3 and 4 only

Project Management Question 15 Detailed Solution

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  • Critical Path Method (CPM) have been used for planning scheduling and controlling in the construction project management.
  • It is activity oriented method.






Critical path method

Programme valuation and review technique





Control time and cost

Control only time


Activity oriented

Event oriented


One time estimate

Three time estimate


Use-Non Research



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