PRINCE2F Practice Exam 2 — 20 Questions

Question 1

A project is in the initiation stage. The project board asks the project manager to produce a document that justifies the project. Which document should the project manager produce?

Accepted Answer

Business Case. The Business Case is the document that justifies the project by providing the justification, costs, benefits, and risks. During the initiation stage, the project manager develops the Business Case to confirm that the project is viable and aligns with corporate objectives. The Project Board then reviews and approves it to authorize the project to proceed.

Answer

Project Initiation Documentation

Answer

Project Brief

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Benefits Management Approach

Question 2

Which role is responsible for maintaining the Business Case throughout the project?

Accepted Answer

Executive (Senior Responsible Owner). The Executive (Senior Responsible Owner) is the role accountable for the Business Case and its ongoing justification throughout the project. PRINCE2 requires the Business Case to be maintained and reviewed at every stage boundary to ensure continued viability, and this responsibility rests with the Executive, not the Project Manager or Team Manager.

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Team Manager

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Project Manager

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Senior User

Question 3

According to PRINCE2, when should the Project Board meet?

Accepted Answer

At each stage boundary and when an Exception Report is raised. In PRINCE2, the Project Board is the decision-making body that provides overall direction and control. The board meets at each stage boundary to review progress, approve the next stage plan, and assess continued business justification. It also meets when an Exception Report is raised, which signals that a stage is forecast to exceed its tolerances, requiring the board to decide on corrective action.

Answer

Only at the start and end of the project

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Monthly

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Weekly

Question 4

A project is forecast to exceed its cost tolerance. What should the Project Manager do?

Accepted Answer

Raise an Exception Report to the Project Board and await their direction. In PRINCE2, when a project is forecast to exceed its cost tolerance, the Project Manager must escalate the issue to the Project Board via an Exception Report. This is because the Project Manager does not have authority to exceed tolerances; the Project Board must decide whether to approve a revised Business Case, adjust tolerances, or terminate the project. Option C correctly follows the PRINCE2 principle of management by exception.

Answer

Close the project immediately as the Business Case is no longer viable

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Continue and report the cost overrun in the next Highlight Report

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Increase the project budget to absorb the additional cost

Question 5

Which role is responsible for the Project Plan?

Accepted Answer

Project Manager. The Project Manager is responsible for producing and maintaining the Project Plan, as defined in PRINCE2's management products. This includes defining the project's stages, activities, dependencies, and resource estimates, and ensuring the plan aligns with the Business Case. The Project Manager owns the planning process and is accountable for the plan's accuracy and updates throughout the project.

Answer

Executive

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Project Board

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Senior User

Question 6

During a stage, a Team Manager identifies a quality problem with a product. This is reported as an Off-specification. According to PRINCE2, what is the first action the Project Manager should take?

Accepted Answer

Log the Off-specification in the Issue Register and assess its impact. According to PRINCE2, when an Off-specification is identified, the Project Manager must first log it in the Issue Register and assess its impact. This ensures that all issues are formally recorded and evaluated before any corrective action is taken, maintaining control over project baselines.

Answer

Reject the product and ask the Team Manager to rework it immediately

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Request a change to the product's quality criteria

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Escalate the issue to the Project Board via an Exception Report

Question 7

Which THREE of the following are threat response types in PRINCE2?

Accepted Answer

Reduce. In PRINCE2, threat response types are designed to address negative risks (threats). 'Reduce' (also called 'Mitigate') involves taking action to lower the probability and/or impact of a threat to an acceptable level. 'Transfer' shifts the financial or contractual impact of a threat to a third party (e.g., insurance). 'Avoid' involves changing the plan to eliminate the threat entirely or protect the project from its impact. These three are explicitly listed in the PRINCE2 risk management practice.

Answer

Enhance

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Exploit

Question 8

Which TWO of the following are benefits of separating the Project Manager and Project Assurance roles?

Accepted Answer

Provides independent oversight of the project. Separating the Project Manager and Project Assurance roles ensures that project assurance is performed independently of the project manager, providing objective oversight. This independence allows assurance to verify that the project is being managed correctly without bias, which is a core principle of PRINCE2's management of risk and quality.

Answer

Increases administrative efficiency

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Reduces the number of roles required

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Ensures faster decision-making

Question 9

Which TWO of the following are responsibilities of the Senior Responsible Owner (SRO/Executive) on the Project Board?

Accepted Answer

Accountable for the Business Case. The Senior Responsible Owner (SRO/Executive) is accountable for the Business Case, ensuring the project remains viable and aligned with organizational objectives. This includes approving the Business Case at initiation and any subsequent changes, as well as securing the necessary funding. The SRO also chairs the Project Board, providing overall leadership and direction, and is ultimately responsible for the project's success.

Answer

Day-to-day management of the project

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Preparing the Highlight Report

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Defining the technical specifications of products

Question 10

Which issue type is used to record a request for a new product or a change to an existing product that has been baselined?

Accepted Answer

Request for Change. In PRINCE2, a Request for Change (RFC) is the correct issue type for recording a proposal for a new product or a modification to a product that has already been baselined (i.e., approved and placed under configuration management). This aligns with the PRINCE2 principle of 'Manage by Stages' and the Change Control approach, where any change to a baselined product must be formally captured as an RFC before being assessed and potentially approved via the change authority.

Answer

Risk

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Problem/Concern

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Off-specification

Question 11

What is the purpose of a Checkpoint Report?

Accepted Answer

To report progress of a Work Package from the Team Manager to the Project Manager. The Checkpoint Report is a PRINCE2 management product used by the Team Manager to report progress of a Work Package to the Project Manager. Its purpose is to provide regular, detailed progress updates on the work being performed by the team, ensuring the Project Manager can monitor delivery against the Work Package plan. This is distinct from higher-level reports like the End Stage Report or Highlight Report.

Answer

To document lessons learned

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To inform the Project Board of stage progress

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To escalate issues to the Project Board

Question 12

Which THREE of the following are risk responses for threats?

Accepted Answer

Reduce. In PRINCE2, risk responses for threats are designed to reduce the probability or impact of a negative risk. 'Reduce' (Option B) is a correct threat response because it involves taking action to lower the probability or impact of a threat, such as implementing additional testing to reduce the risk of software failure. 'Avoid' (Option C) is correct because it involves changing the project plan to eliminate the threat entirely, for example, by choosing a different technology stack to avoid a known security vulnerability. 'Transfer' (Option E) is correct because it shifts the financial impact of a threat to a third party, such as purchasing insurance or outsourcing a high-risk component to a specialist vendor.

Answer

Enhance

Answer

Exploit

Question 13

In the context of PRINCE2 configuration management, what is the purpose of a 'baseline'?

Accepted Answer

To provide a basis for change control by capturing the agreed state of a product. A baseline is a snapshot of a configuration item's state at a specific point in time. It is used to provide a fixed reference for control and management, ensuring changes are made in a controlled manner.

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To define the quality criteria for a product

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To schedule the delivery of products

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To record the current version of a product

Question 14

During the Initiating a Project process, which management approach is created to define how benefits will be realized?

Accepted Answer

Benefits Management Approach. The Benefits Management Approach is created during the Initiating a Project process to define how and when the expected benefits from the project will be measured, realized, and reviewed. It ensures that the project's outputs translate into measurable outcomes aligned with the business case, and it is a key component of the PRINCE2 principle of continued business justification.

Answer

Communication Management Approach

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Risk Management Approach

Answer

Quality Management Approach

Question 15

Which TWO of the following are outputs of the Managing a Stage Boundary process?

Accepted Answer

End Stage Report. The Managing a Stage Boundary process produces the End Stage Report to summarize the current stage's performance against its Stage Plan, and the Stage Plan for the next stage to define the work for the upcoming stage. These are mandatory outputs because the process prepares the project for the next stage or closure decision by the Project Board.

Answer

Project Brief

Answer

Project Initiation Documentation

Answer

Checkpoint Report

Question 16

Which document defines the authority and responsibility of the Project Manager?

Accepted Answer

The Project Brief. The Project Brief defines the authority and responsibility of the Project Manager because it is created during the Starting Up a Project process and includes the project mandate, which outlines the Project Manager's role, authority levels, and accountability. PRINCE2 explicitly states that the Project Brief contains the project management team structure and role descriptions, making it the definitive document for the Project Manager's authority and responsibility.

Answer

The Project Initiation Documentation

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The Stage Plan

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The Work Package

Question 17

In PRINCE2, what is the purpose of the 'Directing a Project' process?

Accepted Answer

To enable the Project Board to make key decisions and exercise overall control. The 'Directing a Project' process in PRINCE2 is designed for the Project Board, not the project manager or team. Its purpose is to empower the Board to make key decisions (e.g., stage boundary approvals, exception plans) and exercise overall control from project initiation through closure, ensuring governance without involvement in day-to-day management.

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To plan and schedule the next stage

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To manage the day-to-day activities of the project team

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To create the project's products

Question 18

In PRINCE2, what is the purpose of the 'Managing Product Delivery' process?

Accepted Answer

To accept, execute, and deliver work packages. The 'Managing Product Delivery' process in PRINCE2 is designed to control the link between the Project Manager and the Team Manager(s) by accepting, executing, and delivering work packages. It ensures that the work assigned to a team is properly authorized, carried out according to the agreed criteria, and that the completed products are handed back to the Project Manager for approval.

Answer

To make key decisions and provide overall direction

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To control the work of the stage on a day-to-day basis

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To plan the next stage and review the Business Case

Question 19

During a project, the senior user requests a change that significantly increases benefits but also increases costs. What should the project manager do first?

Accepted Answer

Assess the impact on the Business Case and submit a change request to the project board. In PRINCE2, any change that impacts the Business Case must be formally assessed before action is taken. The project manager's first responsibility is to evaluate the change's effect on the Business Case (costs vs. benefits) and then submit a formal change request to the Project Board, which holds authority for approving changes that alter the project's justification. Option D aligns with the 'manage by stages' and 'continued business justification' principles.

Answer

Implement the change immediately to realize benefits quickly

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Update the Business Case and proceed without approval

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Reject the change because it increases costs

Question 20

You are the project manager for a software development project. The business case shows a net present value (NPV) of $200,000 with a payback period of 18 months. During the initiating stage, the senior supplier informs you that the cost of a key component has increased by 20%, which will reduce the NPV to $50,000 and extend the payback period to 24 months. The project board is not scheduled to meet for another month. What should you do?

Accepted Answer

Request an extraordinary meeting of the project board to discuss the revised business case. PRINCE2 requires that any change to the business case, especially one that significantly reduces NPV and extends payback period, must be escalated to the project board for a decision. As project manager, you cannot unilaterally update the business case or change scope; you must request an extraordinary meeting to present the revised business case and seek approval to continue. This aligns with the 'continued business justification' principle and the 'manage by stages' theme.

Answer

Update the business case with the new figures and continue with the project

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Reduce project scope to bring costs back in line with the original business case

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Wait for the next scheduled board meeting to present the changes