Which of the following statements correctly describes a strength associated with the selected financial project selection model?


Abstract Theoretical analysis of current literature on project portfolio management reveals a bottleneck in the early stages of the process at the strategic (decision making) resource level. This bottleneck is analysed here using Luehrman's option theory, Goldratt's theory of constraints and Lave and Wenger's theory of legitimate peripheral participation.

Recent researches have shown that companies face considerable difficulties in assessing the strategy value contribution of Information Technology (IT) investments. One of the major obstacles to achieving strategy alignment is that organizations find extremely difficult to link and quantify the IT investments benefits with strategic goals. The aim of this paper is to define an approach to assess portfolio-strategy alignment. To this end a formal specification of Kaplan and Norton Strategy Map is developed utilizing Unified Modeling Language (UML). The approach uses the Strategy Map as a framework for defining the portfolio value contribution and Data Envelopment Analysis (DEA) is used as the methodology for measuring efficiency of project portfolios.

1. Which of the following statements best describes the contemporary use of financial models and scoringmodels for project selection?

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2. Which of the following statements concerning strategic analysis is true?

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3. All of the following factors influence the opportunities and threats an organization must consider whenperforming a strategic analysis EXCEPT:

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4. All of the following factors should be assessed to determine an organization's ability to performprojects EXCEPT:

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5. Which of the following statements correctly describes a weakness associated with the financial projectselection model?

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6. All of the following criteria serve as a valid basis for identifying potential projects in mostorganizations EXCEPT:

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