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Q:
Explain why the critical path is the longest, not the shortest, path through a network.
Q:
Because Tom is planning a new business with a limited timeframe to capitalize on an opportunity, the best solution would be a ____ business plan.
a. comprehensive
b. narrative
c. subjective
d. short
Q:
What is the objective of critical path analysis?
Q:
________ is the amount of time an individual activity in a network can be delayed without delaying the entire project.
Q:
In a business plan, the key statement in the financial plan is the
a. break-even analysis.
b. estimate of returns and allowances.
c. salary expense statement.
d. cash flow statement.
Q:
In a business plan, the legal form of organization would be discussed in the
a. financial plan.
b. company description.
c. executive summary.
d. marketing plan.
Q:
The critical path for the network activities shown below is ________ with duration ________. Activity
Duration
Immediate Predecessors A
10
--- B
8
--- C
2
A D
4
A E
5
B,C, D A) A-C; 12
B) A-D-E; 19
C) B-E; 13
D) A-B-C-D-E; 29
E) none of the above
Q:
When describing the product in the business plan, the entrepreneur should
a. use technical terms.
b. state that product will sell itself.
c. use layman terms.
d. assume that others will like the product.
Q:
The critical path for the network activities shown below is ________ with duration ________. Activity
Duration
Immediate Predecessors A
2
-- B
4
-- C
6
A,B D
1
A,B E
2
B,C,D A) A-D-E; 5
B) B-E; 6
C) B-D-E; 7
D) A-C-E; 10
E) B-C-E; 12
Q:
The critical path for the network activities shown below is ________ with duration ________. Activity
Duration
Immediate Predecessors A
4
--- B
2
A C
7
-- D
4
A E
5
B,C,D A) A-B-D; 10
B) A-B-E; 11
C) C-E; 12
D) A-D-E; 13
E) A-B-C-D-E; 22
Q:
In a business plan, the discussion of the management team should detail
a. the proposed venture's organizational structure.
b. profiles of employee needs during the first three years of operation.
c. the projected growth of the proposed venture.
d. the intended distribution of ownership in the firm.
Q:
The volume revenue model would require customers to pay
a. a fraction of the true value of the product.
b. a fixed amount at regular intervals before receiving the product.
c. a fixed price per unit for a product.
d. a one time fee to use a product.
Q:
Which of the following statements concerning CPM activities is false?
A) The early finish of an activity is the early start of that activity plus its duration.
B) The late finish is the earliest of the late start times of all successor activities.
C) The late start of an activity is its late finish less its duration.
D) The late finish of an activity is the earliest late start of all preceding activities.
E) The early start of an activity is the latest early finish of all preceding activities.
Q:
John is a prospective entrepreneur who has just presented his business plan to a venture capitalist, enthusiastically pointing out the unique features of a new invention he is promoting. The most likely question in the venture capitalist's mind is:
a. How strong is the patent protection?
b. How costly will it be to produce the product?
c. What is the demand for the product?
d. What management skills does this venture have?
Q:
Activity R on a CPM network has predecessors M and N, and has successor S. R has duration 5. N's late finish is 18, while M's is 20. S's late start is 14. Which of the following is definitely true?
A) R is critical and has zero slack.
B) R has no slack but is not critical.
C) The set of times cannot all be possible.
D) N is a critical activity.
E) S is a critical activity.
Q:
A potential investor's single goal is to
a. make as much money as possible.
b. minimize taxes and minimize losses.
c. avoid risk at all costs.
d. maximize returns while minimizing personal risk.
Q:
Which of the following statements regarding CPM networks is true?
A) There can be multiple critical paths on the same project, all with different durations.
B) The early finish of an activity is the latest early start of all preceding activities.
C) The late start of an activity is its late finish plus its duration.
D) If a specific project has multiple critical paths, all of them will have the same duration.
E) None of the above are true.
Q:
Business plan software packages
a. focus mostly on preparing slides to present the business concept to prospective investors.
b. spawn creativity and flexibility on the part of the entrepreneur.
c. help an entrepreneur think through the important issues in starting a new company.
d. offer a simple formula that leads startups to success.
Q:
Activity D on a CPM network has predecessors B and C, and has successor F. D has duration 6. B's earliest finish is 18, while C's is 20. F's late start is 26. Which of the following is definitely true?
A) B is a critical activity.
B) C is completed before B.
C) D has no slack but is not critical.
D) D is critical, and has zero slack.
E) F is critical, and has zero slack.
Q:
A simple CPM network has three activities, D, E, and F. D is an immediate predecessor of E and of F. E is an immediate predecessor of F. The activity durations are D=4, E=3, F=8.
A) The critical path is D-E-F, duration 15.
B) The critical path is D-F, duration 12.
C) Slack at D is 3 periods.
D) Slack at E is 3 periods.
E) Both A and C are true.
Q:
Orlando has just finished the section describing his quality control methods and the need for specific equipment. Orlando has written the __________.
a. management team plan b. marketing plan
c. company description d. operations and development plan
Q:
A good business plan leads to a successful company when the entrepreneur and management team
a. identify all unexpected events.
b. make decisions realizing that change may hurt the new company.
c. understand the plan is static.
d. effectively execute the plan.
Q:
A simple CPM network has three activities, A, B, and C. A is an immediate predecessor of B and of C. B is an immediate predecessor of C. The activity durations are A=4, B=3, C=8.
A) The critical path is A-B-C, duration 15.
B) The critical path is A-C, duration 12.
C) The critical path is A-B-C, duration 13.5
D) The critical path cannot be determined without knowing PERT expected activity times.
E) The network has no critical path.
Q:
Julie has decided to hire a consultant to review her business plan. Which suggestion is the most critical?
a. Get referrals for consultants who specialize in comprehensive business plans.
b. Check references with the Better Business Bureau.
c. Find a consultant who is not knowledgeable in the selected industry but is in general business so as to have a fresh perspective.
d. Have a legal contract that specifies exactly what will be done for what price.
Q:
Which of the following statements regarding CPM is true?
A) The critical path is the shortest of all paths through the network.
B) The critical path is that set of activities that has positive slack.
C) Some networks have no critical path.
D) All activities on the critical path have their LS equal to the maximum EF of all immediate predecessors.
E) All activities on the critical path have their ES equal to their LF.
Q:
Which of the following statements regarding critical paths is true?
A) The shortest of all paths through the network is the critical path.
B) Some activities on the critical path may have slack.
C) Every network has only one critical path.
D) On a specific project, there can be multiple critical paths, all with exactly the same duration.
E) The duration of the critical path is the average duration of all paths in the project network.
Q:
Deviating significantly from the standard business plan format is a mistake because:
a. the business plan is not the right place to express ones creativity. b. investors prefer to see a format that is familiar to them.
c. investors may lose confidence in the entrepreneurs ability to follow best practices. d. investors dont appreciate opportunities that are too far outside the box.
Q:
A business model
a. is only important for startups with a large amount of uncertainty.
b. is intended to provide evidence on whether a concept is viable, not if it can be profitable.
c. is made up of a revenue model, a cost structure, and key resource requirements.
d. forces the entrepreneur to be more disciplined about financial projections.
Q:
The critical path can be determined by use of either the "forward pass" or the "backward pass."
Q:
Investors who review business plans typically
a. cannot read through all they receive.
b. read about one-half of a plan.
c. read plans thoroughly.
d. read only the marketing and finance sections.
Q:
Every network has at least one critical path.
Q:
When determining a cost structure for a business model, equipment lease payments would be an example of a _______ cost.
a. fixed
b. variable
c. semi-variable
d. static
Q:
Slack is the amount of time an activity can be delayed without delaying the entire project.
Q:
Before beginning to write a business plan, the entrepreneur should complete:
a. a thorough market analysis. b. a feasability analysis.
c. a patent application. d. a technical writing course.
Q:
The ES of an activity that has only one predecessor is simply the EF of that predecessor.
Q:
A business plan should generally project financial and operational aspects of the proposed business for the first
a. six months.
b. one year.
c. three to five years.
d. seven years.
Q:
What is the basic difference between PERT and CPM?
Q:
Which question is key for forecasting revenues?
a. Who are the most likely customers?
b. What events will cause the customer to need the product?
c. How will the product compare to the competition?
d. All of the answers to the above questions are important to forecast revenues.
Q:
Identify, in order, the six steps basic to both PERT and CPM.
Q:
An overview of the significant points of a business plan appears in the
a. financial plan.
b. general company description.
c. executive summary.
d. operating plan.
Q:
The network analysis method that allows activity times to vary is ________.
Q:
The ________ is the computed longest time path(s) through a network.
Q:
The executive summary part of a business plan should be written
a. first.
b. last.
c. before the finance plan.
d. before the legal plan.
Q:
The ________ is a project management technique using only one time factor per activity that enables managers to schedule, monitor, and control large and complex projects.
Q:
The narrative form of an executive summary
a. is more straightforward than the synopsis form.
b. allows the author to include hyperbole that builds enthusiasm.
c. is a better format for ventures that have one dominant advantage.
d. gives each topic relatively equal treatment.
Q:
The sources and uses table is a part of the ___________ of the business plan
a. critical risks section b. offering section
c. exit strategy d. financial plan
Q:
A simple CPM network has five activities, A, B, C, D, and E. A is an immediate predecessor of C and of D. B is also an immediate predecessor of C and of D. C and D are both immediate predecessors of E. Which of the following statements is true?
A) There are two paths in this network.
B) There are four paths in this network.
C) There are five paths in this network.
D) There are 25 paths in this network.
E) There are six paths in this network.
Q:
The difference between AON and AOA networks is that:
A) AOA networks sometimes require dummy activities.
B) nodes consume no resources or time in AOA networks.
C) both are acceptable in practice; however, Microsoft Project uses AON.
D) nodes designate activities in AON, while arrows designate activities in AOA.
E) All of the above are true.
Q:
Capital-constrained entrepreneurs cannot afford to do much prior analysis and research because
a. the affordability of properly conducted research is beyond the means at their disposal.
b. the costs of any mistakes are lower than the risks of missing out on opportunistic actions.
c. the limited profit potential and high uncertainty of the opportunity they pursue may make the benefits low compared to the costs.
d. potential competitors could quickly discern the entrepreneurs intentions and motives from their research.
Q:
The main difference between PERT and CPM is that:
A) PERT is more accurate than CPM.
B) PERT assumes that activity durations are known.
C) PERT ignores activity costs.
D) CPM assumes activity durations can vary.
E) PERT employs three time estimates for each activity.
Q:
Ideally, investors like a business plan that shows evidence of
a. a management staff that will minimize overhead.
b. a well-balanced managerial team.
c. an entrepreneur who has studied management.
d. an entrepreneur who will spend more time managing than selling.
Q:
The discussion of the opportunity in the business plan should reflect:
a. how the product or service will fill a need. b. the amount of return the investors should receive.
c. the potential and attractiveness of the market and industry. d. the entrepreneurs enthusiasm for the business idea.
Q:
The fundamental difference between PERT and CPM is that PERT uses the beta distribution for crashing projects while CPM uses cost estimates.
Q:
Information about the experience of key executives should be placed in the _______ of the business plan.
a. executive summary b. management team section
c. operations and development plan d. critical risks section
Q:
The shortest of all paths through the network is the critical path.
Q:
The ___________ type of executive summary is better suited to a business that intends to market a new product or enter a new market.
a. informative b. synopsis
c. narrative d. blended
Q:
Describe some of the challenges faced in the construction of the new 11-story building at ArnoldPalmerHospital in Orlando, Florida.
Q:
Nelson is writing about how he will attract and retain customers, how he will price his product, and how and where he will offer it for sale. Nelson is working on the __________ section of his business plan.
a. customer service b. product/service plan
c. marketing plan d. development plan
Q:
The control of projects involves close monitoring of which of the following?
A) resources
B) costs
C) quality
D) budgets
E) all of the above
Q:
Jamie has decided to start a franchise. Typically, the business type would require a ______ revenue model.
a. volume
b. subscription
c. advertising
d. licensing
Q:
Describe the differences between a Gantt chart and a PERT/CPM network.
Q:
Identify each of the purposes of project scheduling.
Q:
Which group would be the most interested in a business plan for a new venture?
a. Customers
b. Lenders
c. Supervisors
d. The Internal Revenue Service
Q:
Two resources often in short supply for entrepreneurs are:
a. time and money. b. raw materials and labor.
c. plant and equipment. d. financial backing and creative genius.
Q:
Which of the following statements regarding Gantt charts is true?
A) Gantt charts give a timeline and precedence relationships for each activity of a project.
B) Gantt charts use the four standard spines of Methods, Materials, Manpower, and Machinery.
C) Gantt charts are visual devices that show the duration of activities in a project.
D) Gantt charts are expensive.
E) All of the above are true.
Q:
A combination of effective Gantt chart use and other tactics allowed Delta to cut the average time for a plane layover by what % of the original 60 minute duration?
A) 33%, to 40 minutes
B) 50%, to 30 minutes
C) 20%, to 48 minutes
D) 25%, to 45 minutes
E) 40%, to 36 minutes
Q:
The ______________ of a business plan identifies each of the succeeding sections and their page numbers.
a. executive summary b. company description
c. cover page d. table of contents
Q:
The company description section of a business plan should include the companys __________ if the business is already in existence.
a. history b. customer list
c. sales revenues d. credit score
Q:
PERT, but not CPM, has the ability to consider the precedence relationships in a project.
Q:
The industry, target customer, and competitor analysis section should:
a. begin to describe the company. b. present the opportunity and demonstrate that a market segment is understood.
c. introduce the product or service the company will offer. d. identify the companys objectives for sales and growth.
Q:
Gantt charts give a timeline for each of a project's activities, but they do not adequately illustrate the interrelationships between the activities and the resources.
Q:
What are some of the ethical issues faced by project managers?
Q:
Plans that appeal effectively to investors are
a. long and thorough.
b. market-oriented.
c. product-oriented.
d. ten or fewer pages.
Q:
What is a project organization?
Q:
What should a feasibility analysis show before the entrepreneur moves to the business plan step?
a. strong market potential
b. an attractive industry
c. the right team to execute the plan
d. All of the above should be should be evident.
Q:
Identify the responsibilities of project managers.
Q:
The type of executive summary that briefly covers all aspects of the business plan, giving each topic relatively equal treatment, is the ____ executive summary.
a. narrative
b. synopsis
c. dehydrated
d. comprehensive
Q:
The ________ has established a code of ethics especially for project managers.
Q:
An entrepreneur should think of ways to ____________ the resources necessary for startup.
a. outsource b. insure
c. maximize d. minimize
Q:
A(n) ________ divides a project into more and more detailed components.