PRINCE2F Practice Test 3 — 10 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

Answer

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.

Answer

Team Manager

Answer

Project Manager

Answer

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

Answer

Monthly

Answer

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

Answer

Continue and report the cost overrun in the next Highlight Report

Answer

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

Answer

Project Board

Answer

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

Answer

Request a change to the product's quality criteria

Answer

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

Answer

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

Answer

Reduces the number of roles required

Answer

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

Answer

Preparing the Highlight Report

Answer

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

Answer

Problem/Concern

Answer

Off-specification