PRINCE2F Practice Test 35 — 15 Questions

Question 1

A project is in its initiation stage. The project manager needs to identify the major risks that could affect the project. Which practice should be applied to identify, assess, and control these risks?

Choose an answer to begin — your selection is scored in the full session.

Accepted Answer

Risk. The Risk practice in PRINCE2 is specifically designed to identify, assess, and control uncertainties that could affect the project's objectives. During the initiation stage, the project manager applies this practice to systematically identify major risks, evaluate their probability and impact, and plan appropriate responses, ensuring proactive management of threats and opportunities.

Answer

Business Case

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Progress

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Organizing

Question 2

Which TWO statements about the Risk practice are correct?

Accepted Answer

A risk owner must be identified for each risk.. 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 3

Which TWO of the following are components of a Business Case?

Accepted Answer

Major risks. A Business Case in PRINCE2 is the document that justifies the project's initiation and continued viability. Major risks are a component because they must be identified and assessed to determine if the project's potential rewards outweigh the threats. Expected benefits are also a core component, as they define the measurable improvements that the project is expected to deliver, forming the basis for the justification.

Answer

Configuration item records

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Product descriptions

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Project team structure

Question 4

In PRINCE2, a Team Manager reports to the Project Manager. What is the primary responsibility of a Team Manager?

Accepted Answer

Deliver one or more Work Packages as defined in the Stage Plan. The Team Manager is responsible for delivering one or more Work Packages as defined in the Stage Plan. This role focuses on the technical delivery of products within the constraints agreed with the Project Manager, ensuring quality, time, and cost targets are met for those specific work packages.

Answer

Provide independent assurance to the Project Board

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Update the Business Case

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Manage day-to-day project activities across all stages

Question 5

What is the difference between the Starting Up a Project process and the Initiating a Project process?

Accepted Answer

SU produces the Project Brief; IP produces the PID. The Starting Up a Project (SU) process produces the Project Brief, which outlines the project's scope, objectives, and feasibility. The Initiating a Project (IP) process then uses that brief to develop the detailed Project Initiation Documentation (PID), which includes the Business Case, plans, and risk assessment. This distinction is fundamental because SU is a pre-project process to ensure there is a viable idea, while IP is the detailed planning phase that creates the management documents needed to proceed.

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SU creates the Business Case; IP approves it

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SU appoints the Project Board; IP appoints the Project Manager

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SU is done by the Project Board; IP is done by the Project Manager

Question 6

In risk management, what is the difference between a risk owner and a risk actionee?

Accepted Answer

The risk owner is responsible for managing the risk; the risk actionee implements the response. The risk owner is responsible for managing the risk and ensuring the response is implemented. The risk actionee is the person who carries out the response actions. The risk owner may delegate actions but retains accountability.

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The risk owner takes the risk on behalf of the organization; the risk actionee is the Project Manager

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The risk owner is from the Project Board; the risk actionee is from the team

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The risk owner identifies the risk; the risk actionee assesses it

Question 7

Which THREE of the following are responsibilities of the Project Manager?

Accepted Answer

Producing Highlight Reports. The Project Manager manages day-to-day activities, produces Highlight Reports for the board, and updates the Business Case as needed. The PM does not chair the board or perform assurance.

Answer

Performing Project Assurance

Answer

Chairing the Project Board

Question 8

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

Accepted Answer

Raise an Exception Report to the Project Board. In PRINCE2, when a project forecasts exceeding its stage-level cost tolerance, the Project Manager must first escalate the issue to the Project Board by raising an Exception Report. This is because the Project Manager does not have authority to exceed the delegated tolerance; the Project Board must decide on corrective action, such as approving a revised plan or closing the project. Option C is correct as it aligns with the PRINCE2 principle of management by exception.

Answer

Increase the stage budget and continue

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Close the project as the Business Case is not viable

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Wait until the next Highlight Report

Question 9

The Project Board is considering a Request for Change. Which role is authorized to approve changes within delegated limits?

Accepted Answer

Change Authority. The Change Authority role is specifically authorized to approve Requests for Change within delegated limits set by the Project Board. This delegation allows the Change Authority to make decisions on low-impact changes without requiring full Board approval, streamlining the change control process.

Answer

Project Manager

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Senior Supplier

Answer

Senior User

Question 10

During which process does the Project Manager produce an Exception Plan?

Accepted Answer

Managing a Stage Boundary. The Exception Plan is produced during the Managing a Stage Boundary process because this process is triggered when a stage is forecast to exceed its tolerances. The Project Manager creates the Exception Plan to replace the current Stage Plan and submit it to the Project Board for approval, ensuring continued control over the project.

Answer

Managing Product Delivery

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Directing a Project

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Controlling a Stage

Question 11

A project manager is preparing the End Stage Report for the second stage. The project's planned budget for the stage is $500,000, but actual costs are $520,000. The project board is concerned about cost overrun. What is the most appropriate action for the project manager?

Accepted Answer

Include the cost variance and updated forecast in the End Stage Report and submit it.. The End Stage Report is the formal mechanism to report stage performance, including cost variances, to the Project Board. The project manager must include the actual cost ($520,000) against the planned budget ($500,000) and provide an updated forecast, allowing the board to make an informed decision. This aligns with PRINCE2's management by exception principle, where variances within tolerance are reported in the End Stage Report, not via an exception report.

Answer

Request immediate additional budget from the project board before submitting the report.

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Ignore the overrun because it is within the tolerance set by the project board.

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Raise an exception report to the project board immediately.

Question 12

Which role is responsible for ensuring the project provides value for money and is aligned with business strategy?

Accepted Answer

Senior Responsible Owner (Executive). The Senior Responsible Owner (Executive) is the single point of accountability for ensuring the project delivers value for money and remains aligned with the organization's business strategy. This role owns the business case, approves key stage boundaries, and has ultimate authority over project funding and continuation, directly linking project outputs to strategic objectives.

Answer

Senior Supplier

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Project Manager

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Senior User

Question 13

Which of the following is NOT a component of the Business Case?

Accepted Answer

Risk Register. The Business Case in PRINCE2 is a document that justifies the project's initiation and continued viability. It contains components such as Expected Benefits, Investment Appraisal, and Major Risks. The Risk Register is a separate management product used to record and track identified risks, not a component of the Business Case itself.

Answer

Expected benefits

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Investment appraisal

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Major risks

Question 14

What is the difference between a Highlight Report and a Checkpoint Report?

Accepted Answer

Highlight Report is from Project Manager to Project Board; Checkpoint Report is from Team Manager to Project Manager. In PRINCE2, the Highlight Report is a formal report from the Project Manager to the Project Board, summarizing progress, risks, and issues at a stage level. The Checkpoint Report is a detailed report from the Team Manager to the Project Manager, covering work package progress at a team level. This distinction ensures the right level of detail reaches the appropriate management layer.

Answer

Highlight Report is from Team Manager to Project Manager; Checkpoint Report is from Project Manager to Project Board

Answer

Both are from Project Manager to Project Board

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Both are from Team Manager to Project Manager

Question 15

Which THREE of the following are components of the Project Initiation Documentation (PID)?

Accepted Answer

Business Case. The Business Case is a core component of the Project Initiation Documentation (PID) because it provides the justification for the project, including costs, benefits, and risks. In PRINCE2, the PID is the key document that defines the project's scope, objectives, and approach, and the Business Case is essential for ongoing viability checks.

Answer

Highlight Report

Answer

Checkpoint Report