Explanation:
CPM stands for Critical Path Method, which is a project management technique used to analyze and schedule the activities involved in a project. The incorrect statement in this case is option 'A', which states that CPM is an activity-oriented network. However, in reality, CPM is actually an event-oriented network.

Activity-Oriented Network:
In an activity-oriented network, the focus is primarily on the activities or tasks that need to be completed in a project. The activities are represented as arrows or lines in the network diagram, and the nodes represent the events or milestones associated with the completion of those activities. The network diagram in an activity-oriented network shows the sequence of activities and their logical relationships.

Event-Oriented Network:
On the other hand, in an event-oriented network, the focus is on the events or milestones rather than the activities. The events are represented as nodes or circles in the network diagram, and the activities are represented as arrows connecting the events. The network diagram in an event-oriented network shows the sequence of events and the activities associated with each event.

Correct Statement:
Therefore, the correct statement is that CPM is an event-oriented network, not an activity-oriented network. In CPM, the network diagram is event-oriented, where the events represent the start and completion of activities, and the activities are connected to these events. The network diagram in CPM helps in determining the critical path, which is the longest path of activities that determines the minimum duration of the project.

Conclusion:
In conclusion, the incorrect statement is option 'A' which states that CPM is an activity-oriented network. The correct statement is that CPM is an event-oriented network, where the events represent the start and completion of activities.