PM·PREP

PMP® practice question: Evaluate external business environment changes

Business Environment domain · predictive approach · easy

Business EnvironmentEvaluate external business environment changeseasy

Which of the following is an external business environment change that a project manager should be monitoring for its potential impact on the project?

  • AA member of the project team is reassigned to another department.
  • BThe project's risk register is updated following a review workshop.
  • CA new industry regulation is announced that will govern how the product must operate.
  • DThe project schedule is re-baselined following an approved change request from the change control board.

Explanation

Correct answer: C

External business environment factors originate outside the project and organization, such as regulatory, market, economic, or technological changes, as distinct from internal project events.

A
A team reassignment is an internal resourcing event, managed within the project, not an external environment change.
B
Updating the risk register is an internal project activity, not a shift in the outside environment.
C
Correct. A newly announced industry regulation arises outside the project and can change what the product must do, which is exactly the kind of external factor to monitor.
D
Re-baselining the schedule is an internal change-control outcome, not a change in the external environment.

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