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  3. ISEB-PM1

ITIL ISEB-PM1 Exam (page: 15)
ITIL ISEB-PM1 Foundation Certificate in Project Management
Updated on: 15-Feb-2026

Viewing Page 15 of 126
ISEB-PM1 PDF 625 Questions

What is the purpose of a decision tree?

  1. It demonstrates the path of events in a project.
  2. It calculates the probability of an outcome.
  3. It determines what events may take place.
  4. It takes into account future events for today's choices.

Answer(s): D



Executing the risk response plan in order to react to risk events throughout the project is called:

  1. Contingency planning.
  2. Monitoring and control.
  3. Mitigation.
  4. Life cycle costing.

Answer(s): B



What is the difference between management reserves and contingency reserves?

  1. Contingency reserves address known knowns, whereas management reserves address known unknowns.
  2. Contingency and management reserves both address known unknowns and could be considered the same.
  3. Contingency reserves address known unknowns, whereas management reserves address unknown unknowns.
  4. Contingency reserves are managed by senior management, whereas management reserves are managed by the project manager.

Answer(s): C



A project manager is asked to select a contract type for a new software development project that has complete, detailed requirements.
Which is the BEST contract to choose?

  1. Cost reimbursable (CR)
  2. Fixed price (FP)
  3. Time and material (T&M)
  4. Cost plus fixed fee (CPFF)

Answer(s): B



The project manager and project sponsor are discussing the project costs and whether it is better to have their own company do part of the project or hire another company to do the work. If they asked for your opinion, you might say it would be better to do the work yourself if:

  1. There is a lot of proprietary data.
  2. You have the expertise, but you do not have the available manpower.
  3. You do not need control over the work.
  4. Your company resources are limited.

Answer(s): A



Viewing Page 15 of 126



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