Project Managers and Teams Should Consider Risks in the Project

question 19

Multiple Choice

Project managers and teams should consider risks in the project charter for all the following reasons EXCEPT:

• A) risks that may have a negative impact on project objectives should be identified and addressed.
• B) to eliminate all project risks before the project charter is signed
• C) a risk that may have a positive impact on the project should be addressed by a plan to capitalize upon it.
• D) risks that may have a positive impact on the project create opportunities.

---

Definitions:

Corporate Form

A legal structure for businesses recognized as separate entities from their owners, providing limited liability protection and enabling easier access to capital.

Cost Efficient

Achieving a specific goal or output with minimum expense or least waste.

Economic Profit

The discrepancy between sum revenue and sum expenses, taking into account both acknowledged and assumed costs.

Principal-Agent Problem

A dilemma in relationships when one party (the agent) is expected to act in the best interest of another (the principal), but has the potential to act in their own self-interest instead.