Hard1 markMultiple Choice

PMP · Question 24 · Task 2: Evaluate and deliver project benefits and value

A project to automate a factory line will increase production speed by 50% (Benefit). However, it will also result in the layoff of 20 employees, which will negatively impact the company's reputation in the local community.<br/><br/>What is the term for this negative impact?

Answer options:

A.

Dis-benefit

B.

Sunk cost

C.

Opportunity cost

D.

Risk trigger

How to approach this question

Identify the definition. Negative side effect = Dis-benefit.

Full Answer

A.Dis-benefit✓ Correct
A
A dis-benefit is a negative impact that results from a project. While the project delivers value (speed), it also causes harm (layoffs/reputation). PMs must account for dis-benefits in the business case.

Common mistakes

Confusing dis-benefit with risk (which is uncertain; this seems to be a certain consequence).

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