ISEB Foundation Certificate in Project Management - ISEB-PM1 Exam Questions [2026]

QUESTION NO: 1
In which of the following contract types is a price ceiling set and any additional costs above the price ceiling becomes the responsibility of the performing organization?

A. Cost-Reimbursable Contracts B. Time and Materials Contracts (T&M) C. Fixed-Price-Incentive-Fee Contracts (FPIF) D. Firm-Fixed-Price Contracts (FFP)

Correct Answer: C

QUESTION NO: 2
A(n) _____ system is designed to ensure the timely availability of nonhuman resources, and includes the cost in procurement, shipping/freight, storage and loss.

A. All of the other alternatives apply. B. Inventory control and Procurement. C. Inventory control. D. Materials management. E. Procurement.

Correct Answer: D

QUESTION NO: 3
Many companies self insure against some risk. Problems which can arise from self- insurance include:

A. failure to reserve funds to handle worst case scenarios (low probability events) resulting in severe financial damage to the company B. All of the other alternatives apply. C. Both 1) failure to reserve funds to handle worst case scenarios (low probability events) resulting in severe financial damage to the company, and 2) confusion of business risks with insurable risks. D. confusion of business risks with insurable risks. E. stiff competition from insurance companies

Correct Answer: C

QUESTION NO: 4
What are the identified risks for doing excessive decomposition in a WBS?

A. Non-productive management effort and inefficient use of resources B. Disqualification of sellers and non-productive management efforts C. Insufficient project funding and ineffective use of resources D. Insufficient project funding and disqualification of sellers

Correct Answer: A

QUESTION NO: 5
Extensive use of ___ communication is MOST likely to aid in solving complex problems.

A. Nonverbal B. Written C. Formal D. Verbal

Correct Answer: B

QUESTION NO: 6
Fast tracking is a schedule compression technique used to shorten the project schedule without changing project scope. Which of the following can result from fast tracking?

A. Duration buffers are added to maintain a focus on planned activity durations. B. The critical path will have positive total float. C. The risk of achieving the shortened project time is increased. D. Contingency reserves are released for redeployment by the project manager.

Correct Answer: C

QUESTION NO: 7
You have assembled your thoughts into a message. As you pass this information to a second party, you are giving this person your:

A. Input and Data B. Feedback C. Input D. Data E. Output

Correct Answer: E

QUESTION NO: 8
Which of the following is a strategy for positive risks?

A. Avoid B. Mitigate C. Accept D. Transfer

Correct Answer: C

QUESTION NO: 9
You are working on a project that is similar in scope to a project performed last year by your company. You might consider which of the following?

A. Using the previous project's alternatives identification as a template B. Reusing the previous project's cost-benefit analysis as justification for this project C. Reusing the previous project's product description when writing the scope statement D. Using the previous project's WBS as a template

Correct Answer: D

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QUESTION NO: 10
Employee unions would most likely satisfy which level in Maslow's hierarchy of needs?

A. Self-actualization B. Safety C. Esteem D. Empowerment E. Belonging

Correct Answer: E

QUESTION NO: 11
You are a project manager of ABC organization. You are estimating the project in initiation phase. What level of accuracy you can expect?

A. -50 percent to +50 percent B. -75 percent to +75 percent C. -25 percent to +25 percent D. -50 percent to +100 percent

Correct Answer: D

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QUESTION NO: 12
Forecasts, requested changes, recommended corrective actions, and organizational process asset updates are all outputs of which process?

A. Manage stakeholders B. Risk monitoring and control C. Performance reporting D. Risk response planning

Correct Answer: C

QUESTION NO: 13
Formal written correspondence is mandated in which of the following situations:

A. Product undergoes casual in-house testing B. None of the other alternatives apply C. Client requests additional work not covered under contract D. Project manager calls a meeting E. Both 1) Client requests additional work not covered under contract, and 2) Project manager calls a meeting.

Correct Answer: C

QUESTION NO: 14
Which statement is TRUE about Present Value(PV)?

A. The value today of future cash flow B. The difference in benefit received between a chosen project and a project that was not chosen C. The interest rate that makes the net present value of all cash flow equal zero D. The present value of cash inflow less the present value of cash outflow

Correct Answer: A

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