PRINCE2F Practice Test 14 — 15 Questions

Question 1

During a stage, a team manager reports that a key product will be delivered two weeks late due to resource constraints. The project manager updates the stage plan and finds that the stage tolerance for time is about to be exceeded. What is the first action the project manager should take?

Accepted Answer

Issue an exception report to the project board. The project manager must escalate the issue to the project board because the stage tolerance for time is about to be exceeded. According to PRINCE2, when a forecast indicates that a stage will exceed its tolerances, the project manager must produce an Exception Report and submit it to the project board, which then decides on corrective action. This is a mandatory escalation step to maintain management by exception.

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Revise the project plan to absorb the delay

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Reassign resources to the delayed product

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Request a concession from the project board

Question 2

During which process does the Project Board authorize the project to proceed with the initiation stage?

Accepted Answer

Directing a Project. The Directing a Project process includes the 'Authorize Initiation' activity, where the Project Board gives approval to start initiation.

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Starting up a Project

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Initiating a Project

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Controlling a Stage

Question 3

Which TWO statements about the Risk practice are correct?

Accepted Answer

A risk owner must be identified for each risk.. Option B is correct because PRINCE2 requires that each risk has a named risk owner who is accountable for managing that risk and implementing the planned responses. This ensures clear accountability and proactive risk management throughout the project lifecycle.

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The risk budget is used to fund the project's activities.

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Only threats are considered as risks.

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The risk register is optional if the project is small.

Question 4

Which THREE activities are part of the Initiating a Project process?

Accepted Answer

Prepare the Project Plan. Option A is correct because preparing the Project Plan is a key activity in the Initiating a Project process, where the detailed plan for the project is developed based on the Project Brief and the chosen strategy. This plan covers time, cost, quality, and scope, and is a core component of the Project Initiation Documentation (PID).

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Authorize the initiation stage

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Appoint the project board and project manager

Question 5

Based on the exhibit, what is the purpose of including expected dis-benefits in the Business Case?

Accepted Answer

To provide a balanced view of the project's justification. Option C is correct because the PRINCE2 Business Case must include expected dis-benefits to provide a balanced view of the project's justification. Dis-benefits are measurable negative outcomes that, when weighed against benefits, allow the Senior User and Senior Supplier to make an informed go/no-go decision. Without documenting dis-benefits, the Business Case would present an incomplete picture, potentially leading to approval of a project with hidden negative impacts.

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To identify risks that could affect the project

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To show the full cost of the project including ongoing operational costs

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To document the project's key performance indicators

Question 6

A project is in the Initiating a Project process. The project manager is creating the Risk Management Approach. Which of the following should be included in this approach?

Accepted Answer

The risk categories to be used for classifying risks.. In the Initiating a Project process, the Risk Management Approach is a strategy document that defines how risk management will be performed throughout the project. It must include the risk categories (e.g., technical, external, organizational) used to classify risks, as these provide a consistent framework for identifying and assessing risks. The risk register, risk appetite, and risk budget are not part of the approach itself; they are outputs of later processes or separate management products.

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The risk register with identified risks.

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The risk appetite of the organization.

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The risk budget for the project.

Question 7

A project manager is preparing the Business Case for a new project. The expected benefits are $500,000, and the expected costs are $400,000. However, there is a high risk that the benefits may be only $300,000 due to market uncertainty. According to PRINCE2 practices, how should the project manager reflect this in the Business Case?

Accepted Answer

Include a cost-benefit analysis showing a range of benefits ($300,000-$500,000) and a risk assessment explaining the market uncertainty.. Option A is correct because PRINCE2 requires the Business Case to be a living document that reflects realistic projections, including uncertainties. By showing a range of benefits ($300,000–$500,000) and a corresponding risk assessment, the project manager provides a balanced view that supports informed decision-making, aligning with the 'continued business justification' principle.

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Use the lower benefit estimate of $300,000 to be conservative.

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Use the expected benefits of $500,000 as the primary figure, with a note that benefits may vary.

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Omit the risk from the Business Case to avoid discouraging stakeholders.

Question 8

Refer to the exhibit. The project board is reviewing the End Stage Report for Stage 2 and the Stage Plan for Stage 3. The Stage Plan for Stage 3 exceeds the agreed cost tolerance. According to PRINCE2, what should the project board do?

Accepted Answer

Ask the project manager to produce an Exception Plan for Stage 3. According to PRINCE2, when a Stage Plan exceeds the agreed cost tolerance, the project board cannot approve it. Instead, the project manager must produce an Exception Plan that describes the options to bring the stage back within tolerance or to request a revised tolerance. This is a formal exception management process defined in the PRINCE2 manual.

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Approve the Stage Plan as it is, since Stage 2 was completed within tolerance

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Reject the Stage Plan and ask the project manager to terminate the project

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Lower the cost tolerance for Stage 3 to match the plan

Question 9

Refer to the exhibit.

PRINCE2 Configuration Item Record
Item ID: CI-103
Product: User Authentication Module
Version: 2.1
Status: Under Development
Baseline: 2.0
Last Review: 2024-01-15
Owner: Project Support Office

Issue: The team reports that the latest version (2.1) has a critical defect. The status is 'Under Development' but the baseline is still 2.0. What process should the project manager follow?

Accepted Answer

Log the defect as an issue and manage it through Controlling a Stage.. Option A is correct because the defect in version 2.1 of the User Authentication Module is a new issue that must be formally logged and managed within the current stage. PRINCE2 requires that all issues (including defects) be captured in the Issue Register and handled through the Controlling a Stage process, which includes assessing the impact, deciding on corrective action, and updating the Configuration Item Record (CIR) accordingly. The baseline remains 2.0 because version 2.1 is still under development and has not been baselined, so the defect does not trigger a baseline change request.

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Include the defect in the next Managing a Stage Boundary report.

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Update the configuration item record and close the project.

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Raise an exception report to the project board for a baseline change.

Question 10

Which TWO statements about the PRINCE2 Quality practice are correct?

Accepted Answer

The quality register is used to record planned and completed quality activities.. Option C is correct because the quality register is the PRINCE2 management product used to record all planned and completed quality activities, including quality inspections and test results. It provides a log of quality events throughout the project lifecycle, enabling traceability and auditability of quality efforts.

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Quality control is the responsibility of the project board.

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Quality assurance is performed by the project manager.

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The project product description is a specialist product.

Question 11

During the Initiating a Project process, the project manager is reviewing the Business Case. Which statement best describes the purpose of this review?

Accepted Answer

To develop a detailed justification for the project and confirm it remains viable.. Option C is correct because during the Initiating a Project process, the Business Case is reviewed to develop a detailed justification for the project and confirm it remains viable. This involves refining the outline Business Case from the Starting Up a Project process into a fully detailed document that justifies the project's continued existence based on costs, benefits, risks, and timescales. The review ensures the project is still aligned with corporate objectives and that the investment is worthwhile before proceeding to the next stage.

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To confirm the project's scope and high-level risks before the project mandate is issued.

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To authorize work packages for the first stage of the project.

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To obtain final approval from the project board before project execution begins.

Question 12

A project is in the Controlling a Stage process. The project manager receives a request from a team manager to change the design specification because of a technical difficulty. The change would not affect the stage plan or the business case. What should the project manager do first?

Accepted Answer

Log the issue in the Issue Register and assess the impact. According to PRINCE2, when a team manager raises a technical difficulty that could result in a change, the project manager must first log it as an issue in the Issue Register. Only after logging and assessing the impact can the project manager decide on the appropriate response. Since the change does not affect the stage plan or business case, the project manager can handle it within the stage without escalating to the project board.

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Update the Risk Register and create a risk response

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Escalate the issue to the project board for a decision

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Instruct the team manager to proceed with the change

Question 13

A project is underway, and the project manager notices that the team is frequently re-prioritizing work and losing focus. Which PRINCE2 process should the project manager use to re-establish control?

Accepted Answer

Controlling a Stage. The project manager should use the Controlling a Stage process because it is specifically designed to monitor the day-to-day work of the stage, manage issues and risks, and take corrective action to keep the stage on track. The symptom of frequent re-prioritization and loss of focus indicates a lack of control within the current stage, which this process directly addresses by providing mechanisms for work package assignment, progress monitoring, and escalation. It ensures the stage remains within tolerance and that the team's efforts are aligned with the stage plan.

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Managing Product Delivery

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Managing a Stage Boundary

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Directing a Project

Question 14

A project team is about to begin the first stage of a project. The project board has approved the project initiation documentation. Which process should be used to authorize the work?

Accepted Answer

Managing Product Delivery. The Managing Product Delivery process is used to control the link between the project manager and the team managers, authorizing work on the first stage's products. Since the project initiation documentation (PID) is approved, the project board has authorized the project, and the project manager uses Managing Product Delivery to assign work packages to the team for execution.

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Starting Up a Project

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Directing a Project

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Initiating a Project

Question 15

During the Managing a Stage Boundary process, the project manager produces an End Stage Report for the current stage and a Stage Plan for the next stage. However, the project board rejects the Stage Plan. What is the project manager's next course of action according to PRINCE2?

Accepted Answer

Issue an Exception Report to the project board recommending project closure. When the Project Board rejects the Stage Plan during the Managing a Stage Boundary process, the project cannot proceed as intended. PRINCE2 requires the Project Manager to issue an Exception Report to the Project Board, recommending project closure if the plan is not approved, because the project has no authorized plan to continue and the board must decide whether to close or take alternative action.

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Revise the Stage Plan and resubmit it to the project board

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Escalate to the program or corporate management for a decision

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Proceed with the next stage as planned, then report to the project board at the next review