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:

Dis-benefit

Sunk cost

Opportunity cost

Risk trigger

How to approach this question

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

Full Answer

A.Dis-benefit✓ Correct

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).

Question 23 All questions Question 25

Practice the full PMP Business Environment Domain Practice Exam

60 questions · hints · full answers · grading

More questions from this exam

Q01A project manager is leading a medical device development project. During the execution phase, a ...Hard Q02A global fintech organization is launching a new payment platform. The project manager is identif...Hard Q03A project manager discovers that a subcontractor has been disposing of chemical waste improperly,...Hard Q04An Agile team is developing a healthcare application. A new patient privacy regulation is passed ...Hard Q05A project team is building a new headquarters. The project manager must ensure that the building ...Hard

View all 60 questions →