PRINCE2F Practice Exam 2 — 20 Questions

Question 1

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. 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.

Answer

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 2

Why does PRINCE2 separate the Project Manager role from the Project Assurance role?

Accepted Answer

To ensure that assurance activities are independent and objective. Separation ensures independence of assurance, preventing the Project Manager from making biased assessments of their own work.

Answer

To allow the Project Manager to focus on user requirements

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To reduce the workload of the Project Manager

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Because PRINCE2 requires a separate person for every role

Question 3

A project is in the Initiation Stage. The project manager has drafted the Project Initiation Documentation (PID) and is about to submit it to the project board for approval. However, the project board chair insists that the PID must include the Project Product Description and the Benefits Review Plan. Which statement about the PID is correct?

Accepted Answer

The PID is a collection of documents that includes the Project Product Description and the Benefits Review Plan, and it may be assembled in various formats.. The PID is a collection of information rather than a single document, and it includes the Project Product Description and Benefits Review Plan. PRINCE2 allows the PID to be assembled in various formats, reflecting the principle of tailoring. The project board uses the PID to decide whether to authorize the project. Therefore, the correct answer is the one that recognizes the PID as a flexible collection that encompasses these components.

Answer

The PID is a single document that must contain the Project Product Description and the Benefits Review Plan as separate sections.

Answer

The Project Product Description and Benefits Review Plan are created after the PID is approved and are therefore not part of the PID.

Answer

The PID must be a single physical document, and the Project Product Description and Benefits Review Plan are optional appendices.

Question 4

Which register is used to record all identified risks that may affect the project?

Accepted Answer

Risk Register. The Risk Register is the PRINCE2 management product used to record and track all identified risks that could affect the project. It captures details such as risk description, probability, impact, proximity, and planned responses, ensuring risks are managed proactively throughout the project lifecycle.

Answer

Quality Register

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Configuration Item Record

Answer

Issue Register

Question 5

Which TWO of the following are activities performed in the Managing a Stage Boundary process?

Accepted Answer

Update the Business Case. In PRINCE2, the Managing a Stage Boundary process is triggered as the current stage nears completion and its purpose is to prepare the next stage plan and update the project's viability documentation for the Project Board. Option C (Update the Business Case) is correct because the Business Case must be reassessed and updated at each stage boundary to confirm the project remains viable and aligned with the benefits. Option D (Plan the next stage) is correct because producing the Next Stage Plan is a core activity of this process, along with producing an End Stage Report and requesting stage authorisation. Option A (Authorise a Work Package) belongs to Controlling a Stage, where the Project Manager authorises work packages to Team Managers. Option B (Produce the Project Brief) is part of Starting up a Project, and Option E (Deliver a product) is performed by the team during Managing Product Delivery.

Answer

Authorise a Work Package

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Produce the Project Brief

Answer

Deliver a product

Question 6

During the Controlling a Stage process, the Project Manager receives a Checkpoint Report indicating that a product will be delivered late. What should the Project Manager do first?

Accepted Answer

Assess the impact on stage tolerances and take corrective action if within tolerance. If a Checkpoint Report indicates a deviation within stage tolerances, the PM can take corrective action themselves. If it threatens stage tolerance, they must escalate.

Answer

Revise the Stage Plan and inform the Project Board

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Request a new Work Package from the Team Manager

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Raise an Exception Report immediately

Question 7

Which process is used by the Project Board to give ad-hoc direction to the project?

Accepted Answer

Directing a Project. The Directing a Project process is specifically designed for the Project Board to provide overall direction and control, including making key decisions and issuing ad-hoc instructions outside of the regular stage management cycle. It covers activities like authorizing initiation, stage plans, and project closure, as well as giving ad-hoc direction to the project manager when needed.

Answer

Managing Product Delivery

Answer

Controlling a Stage

Answer

Managing a Stage Boundary

Question 8

Which process produces the Project Brief?

Accepted Answer

Starting Up a Project. The Project Brief is produced during the 'Starting Up a Project' process. This process is triggered before the project is formally initiated, and its purpose is to create the Project Brief, which provides a high-level overview of the project's justification, scope, and approach, enabling the Project Board to decide whether to proceed to initiation.

Answer

Directing a Project

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Initiating a Project

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Managing a Stage Boundary

Question 9

Which THREE of the following are common reasons why projects fail, which PRINCE2 addresses?

Accepted Answer

Unclear project objectives. PRINCE2 mandates clear, measurable project objectives through its Business Case and Project Product Description management products. Unclear objectives are a leading cause of project failure, as they prevent effective planning and control. PRINCE2's focus on continued business justification ensures objectives remain aligned with organizational goals.

Answer

Budget overrun due to inflation

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Technology failure

Question 10

Which process ensures that the project's products are formally accepted and the project is closed in a controlled way?

Accepted Answer

Closing a Project. In PRINCE2, the 'Closing a Project' process is specifically designed to ensure that the project's products are formally accepted and the project is closed in a controlled manner. It covers activities like preparing planned closure, handing over products, evaluating the project, and recommending project closure.

Answer

Managing a Stage Boundary

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Controlling a Stage

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Directing a Project

Question 11

Which risk response is appropriate for a threat that the project team decides to proactively manage by reducing the probability or impact?

Accepted Answer

Reduce. Reduce is the correct risk response because it involves implementing actions to lower the probability or impact of a threat while still accepting that the risk may occur. In PRINCE2, this is a proactive response where the project team actively manages the risk by, for example, adding redundancy or conducting more frequent testing to decrease the likelihood of failure. The key is that the risk is not eliminated entirely but its effects are mitigated.

Answer

Avoid

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Transfer

Answer

Accept

Question 12

Which THREE of the following are roles on the Project Board?

Accepted Answer

Senior Supplier. The Project Board in PRINCE2 is the management committee responsible for overall project direction and key decisions. The three mandatory roles on the Project Board are the Executive (who owns the business case), the Senior User (who represents the users' needs), and the Senior Supplier (who represents the supplier's interests). Option A is correct because the Senior Supplier is a core Project Board role, ensuring the supplier's resources and capabilities are aligned with project deliverables.

Answer

Project Support

Answer

Project Manager

Question 13

What is the purpose of a Product Status Account?

Accepted Answer

To provide information about the status of products in the project.. The Product Status Account is a PRINCE2 management product that provides a snapshot of the status of all products within a project at a given point in time. Its purpose is to give stakeholders and the project manager a consolidated view of which products are complete, in progress, or have issues, enabling informed decision-making and control.

Answer

To define the product breakdown structure.

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To authorize changes to a product baseline.

Answer

To describe the quality criteria for a product.

Question 14

What is the difference between the Senior Responsible Owner (SRO/Executive) and a Project Sponsor?

Accepted Answer

The SRO is a PRINCE2 role; 'Project Sponsor' is not a PRINCE2 term. PRINCE2 defines the Senior Responsible Owner (SRO) as the single person accountable for the business case and overall project success, and it is a formal role within the PRINCE2 Project Board. 'Project Sponsor' is a generic term used in many organizations but is not a defined role in the PRINCE2 methodology. Therefore, the key difference is that the SRO is a specific PRINCE2 role, while 'Project Sponsor' is not part of the PRINCE2 terminology.

Answer

The SRO is a member of the Project Board; the Sponsor is not

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They are the same role with different names

Answer

The Project Sponsor is more senior than the SRO

Question 15

What is the purpose of the product-based planning approach in PRINCE2?

Accepted Answer

To define the products and their quality criteria before planning activities. The product-based planning approach in PRINCE2 ensures that the project's outputs (products) and their quality criteria are defined before planning the activities and dependencies. This prevents scope creep and rework by establishing clear acceptance standards upfront, aligning with PRINCE2's focus on management by product.

Answer

To list all activities required to produce the products

Answer

To create a Gantt chart

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To assign costs to each activity

Question 16

During the Managing Product Delivery process, who produces the Checkpoint Report?

Accepted Answer

Team Manager. The Team Manager is responsible for producing Checkpoint Reports to inform the Project Manager of progress within a Work Package.

Answer

Project Manager

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Project Support

Answer

Project Board

Question 17

Who is responsible for performing Project Assurance?

Accepted Answer

Project Board members (or their delegates). Project Assurance is a PRINCE2 responsibility that provides an independent check on the project's progress, compliance, and viability. The Project Board members (or their delegates) are accountable for this function because they represent the business, user, and supplier interests, ensuring objective oversight separate from day-to-day management.

Answer

Project Support

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Project Manager

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Team Managers

Question 18

A project is in the Managing a Stage Boundary process. Which TWO outputs are produced during this process? (Select TWO)

Accepted Answer

End Stage Report. SB produces the End Stage Report and the next Stage Plan (or Exception Plan).

Answer

Project Plan

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Benefits Management Approach

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Project Brief

Question 19

Which principle of PRINCE2 is being applied when a project is divided into management stages?

Accepted Answer

Manage by stages. The PRINCE2 principle 'Manage by Stages' states that a project must be planned, monitored, and controlled on a stage-by-stage basis, with each management stage providing a control point for the project board. Dividing a project into management stages is the direct application of this principle. It enables incremental governance and go/no-go decisions at stage boundaries.

Answer

Manage by exception

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Focus on products

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Learn from experience

Question 20

Who is responsible for authorising the start of a project in PRINCE2?

Accepted Answer

The Project Board. In PRINCE2, the Project Board is responsible for authorising the start of a project. This occurs at the end of the Initiating a Project process, when the Project Board reviews the Project Initiation Documentation and gives approval to proceed with the project. The Project Board provides overall direction and control, ensuring the project aligns with business, user, and supplier interests.

Answer

The Senior Supplier

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The Project Manager

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The Senior User