NPTEL Project Management Week 1 And 2 Assignment Answers 2024
1. What is a Project?
A) A series of actions or steps taken in order to achieve a particular end
B) An individual or collaborative enterprise that is carefully planned to achieve a particular aim
C) The action of making or manufacturing from components or raw materials, or the process of being so manufactured
D) All of these
✅ Answer: B – An individual or collaborative enterprise that is carefully planned to achieve a particular aim
Explanation:
A project is defined as a temporary endeavor undertaken to create a unique product, service, or result. It has specific objectives, timelines, and deliverables.
2. Which of the following is/are TRUE for Projects?
A) They are complex and unique.
B) They have a clear goal or set of goals.
C) They are limited by budget, schedule, and resources.
D) All of these
✅ Answer: D – All of these
Explanation:
Projects are temporary, unique, and constrained by time, cost, and scope. All the listed statements are true.
3. Which of the following statement(s) is/are TRUE?
I. The TASK perspective of Project Management emphasizes methods and techniques for planning and control
II. The ORGANIZATIONAL perspective emphasizes organization and human relationships.
A) Only I
B) Only II
C) I and II
D) None of these
✅ Answer: C – I and II
Explanation:
Project management includes both technical (task-oriented) and human (organizational) aspects.
4. Which of the following is FALSE for Agile Project Management strategy?
I. Agile projects focus on business outcomes instead of just triple constraints.
II. Project manager in agile facilitates disintegration of project and business.
III. Agile prioritizes business alignment over static plans.
A) Only I
B) Only II
C) I and II
D) None of these
✅ Answer: B – Only II
Explanation:
Statement II is incorrect because the project manager integrates project outcomes with business, not disintegrates. Other statements reflect Agile principles correctly.
5. Which of the following statement(s) is/are TRUE?
I-IV statements related to KPIs, constraints, and success factors
✅ Answer: D – All of these
Explanation:
All given statements align with standard project management theory. KPIs are measurable indicators, and success factors are conditions necessary for success.
6. Which of the following statement(s) is/are FALSE?
I-IV related to project maturity and benchmarking
A) Only I
B) Only IV
C) I and II
D) None of these
✅ Answer: B – Only IV
Explanation:
IV is incorrect – Success criteria are not the same as KPIs; they define project success, while KPIs are metrics tracked during the process.
7. The sub-category of the project management objectives which measures the “Successful influence or impact on the society by the project” is termed as
A) Project objective
B) Business objective
C) Social objective
D) Management objective
✅ Answer: C – Social objective
Explanation:
Social objectives assess the positive or negative impact of the project on society and environment.
8. Which of the following Characteristics of the Project Management is TRUE?
A) The focal point of the project management is the project manager.
B) Responsibility is shared across the top team
C) All projects have different goals
D) Project manager delivers product on their desired timeline
✅ Answer: A – The focal point of the project management is the project manager
Explanation:
The project manager is responsible for planning, execution, monitoring, and delivery — making them the central figure in project management.
9. Which stage of the project management life cycle needs the maximum time of completion?
A) Conceptualization
B) Planning
C) Execution
D) Termination
✅ Answer: C – Execution
Explanation:
The execution phase is where the actual work happens, so it consumes the most time and resources in a project.
10. The Sponsor, the Owner and the User are the three constituent stakeholders of
A) Project Owner
B) Project Organization
C) Project Society
D) Project Manager
✅ Answer: A – Project Owner
Explanation:
The Project Owner includes stakeholders like sponsor, user, and owner who are responsible for funding, benefiting from, and owning the project outcome.
NPTEL Project Management Week 2 Assignment Answers
1. A ___________ is connected to circumstances outside the project that may influence the scope of work and the performance of the organization.
A) Operational Risk
B) Contextual Risk
C) Strategic Risk
D) Financial Risk
✅ Answer: B – Contextual Risk
Explanation: Contextual risks arise from external factors such as political, economic, environmental, or social circumstances that affect project outcomes indirectly.
2. Which of the following is the correct four-stage risk management process?
A) Risk identification → Outsourcing of Risk management → Analysis of Probability and Consequences → Contractual or Legal formalities
B) Risk identification → Analysis of Probability and Consequences → Risk Mitigation Strategies → Control and Documentation
C) Risk identification → Analysis of Probability and Consequences → Risk Mitigation Strategies → Contractual or Legal formalities
D) Risk identification → Outsourcing of Risk management → Risk Mitigation Strategies → Control and Documentation
✅ Answer: B – Risk identification → Analysis of Probability and Consequences → Risk Mitigation Strategies → Control and Documentation
Explanation: This is the standard risk management cycle, ensuring risks are identified, evaluated, acted upon, and monitored.
3. Which of the following statement(s) is/are TRUE?
I. SWOT analysis and Brainstorming are basic planning techniques
II. Check List and Pairwise Ranking are commonly used evaluation methods
III. AHP is a criteria-based group decision method
IV. Decision Trees are multi-criteria evaluation methods
✅ Answer: D – All of the statements are TRUE
Explanation: All listed methods are commonly used tools in decision analysis and project planning.
4. Which of the following is a valid assumption for CAPM?
A) Limited short selling is allowed
B) Limited riskless lending and borrowing is allowed
C) No transaction costs or administrative costs
D) No projects/assets are marketable
✅ Answer: C – No transaction costs or administrative costs
Explanation: CAPM assumes frictionless markets—no taxes, no transaction costs, and perfect information.
5. Which of the following statement is TRUE?
A) Risk is usually denoted by the deviation of the readings
B) Diversification reduces risk by spreading across assets
C) Projects carry less risk than markets
D) None of the above
✅ Answer: B – Diversification is the process of allocating capital in a way that reduces the exposure to any one particular asset or risk
Explanation: Diversification minimizes unsystematic risk by spreading investments across various assets.
6. What is the beta (β) of Project A and Project B?
✅ Answer: D – βₐ = 2.13 and βᵦ = 2.34
Explanation: Based on the CAPM formula, beta values are calculated from return sensitivity to the market. Higher beta = higher risk.
7. What is the value of the Project A and Project B after 20 years?
✅ Answer: B – Pt,A = ₹206,045.10 and Pt,B = ₹138,661.20
Explanation: Using future value formula or compounded returns, Project A, though costlier, gives higher returns over time.
8. Suppose the NPV of Project A is ₹150,000 and Project B is ₹100,000. Which project should be chosen?
✅ Answer: B – Project A is chosen over Project B
Explanation: Higher NPV = higher profitability, so Project A is preferred based on financial return.
9. If Project A is expected to offer 14% return with beta from Q6, what action should be taken?
✅ Answer: A – Sell short Project A because it is overpriced
Explanation:
If the expected return is less than required return (per CAPM), then the asset is overpriced, and investors would short it.
10. ______ cannot be avoidable even through proper diversification.
A) Portfolio risk
B) Systematic risk
C) Unsystematic risk
D) Total risk
✅ Answer: B – Systematic risk
Explanation:
Systematic risk (market risk) affects the entire market and cannot be eliminated, even with diversification. Only unsystematic risk can be diversified away.