PRINCE2F Practice Test 49 — 15 Questions

Question 1

Which of the following is a risk response appropriate for an opportunity?

Accepted Answer

Enhance. PRINCE2 defines four opportunity responses: exploit, enhance, share, and reject. 'Enhance' is one of these.

Answer

Reduce

Answer

Avoid

Answer

Transfer

Question 2

A Project Manager is about to begin work on a new stage. Which document provides the authority to proceed with the stage?

Accepted Answer

Stage Plan. In PRINCE2, the Stage Plan is the document that, once approved by the Project Board, provides the authority to proceed with that specific stage. The 'authorize a stage' activity within the Directing a Project process uses the Stage Plan as the basis for the Project Board's decision. Without an approved Stage Plan, the Project Manager cannot legitimately start work on the stage.

Answer

Project Brief

Answer

Project Initiation Documentation

Answer

Business Case

Question 3

Which process ensures that the project's products are handed over and the project is formally closed?

Accepted Answer

Closing a Project. Closing a Project is the PRINCE2 process that ensures the project's products are handed over to the customer or operations and that the project is formally closed. It covers acceptance of the products, confirmation of closure, and lessons learned. The other processes deal with stage-level control, stage boundaries, or project direction, not final closure.

Answer

Controlling a Stage

Answer

Managing a Stage Boundary

Answer

Directing a Project

Question 4

Which of the following is a valid threat response in PRINCE2?

Accepted Answer

Transfer. PRINCE2 defines five threat responses: Avoid, Reduce, Fallback, Transfer, and Accept. 'Transfer' is one of these, representing the action of shifting the risk to a third party (e.g., insurance or contract). The other options — Enhance, Reject, and Exploit — are not valid threat responses; Enhance and Exploit are opportunity responses, and Reject is not defined in PRINCE2.

Answer

Enhance

Answer

Reject

Answer

Exploit

Question 5

Which of the following correctly describes the relationship between the Change Authority and the Project Board?

Accepted Answer

The Project Board delegates authority to the Change Authority to approve changes within set limits. In PRINCE2, the Change Authority is a role to which the Project Board delegates authority to approve change requests within predefined limits (e.g., cost, time, or scope thresholds). This delegation is documented in the Work Package or the Project Initiation Documentation, ensuring that the Change Authority can make decisions without requiring the Project Board's involvement for every minor change, thus streamlining the change control process.

Answer

The Change Authority is a role within the Project Support office

Answer

The Project Board and Change Authority are the same

Answer

The Change Authority reports to the Project Manager

Question 6

During the Closing a Project process, the Project Manager produces a Lessons Report. What should happen to this report?

Accepted Answer

It should be published to the organization's lessons database. In PRINCE2, the Lessons Report is produced during Closing a Project and is explicitly intended to be shared with the wider organization so future projects can benefit from the experience. The correct destination is the organization's lessons database or equivalent repository, where it becomes part of corporate knowledge. Filing it away or restricting it defeats the purpose of the Lessons Learned practice.

Answer

It should be filed in the project records and not reviewed

Answer

It should be destroyed to maintain confidentiality

Answer

It should be passed to the Executive for personal use

Question 7

During which process does the Project Manager produce a Highlight Report for the Project Board?

Accepted Answer

Controlling a Stage. The Highlight Report is a progress report produced by the Project Manager for the Project Board during the Controlling a Stage process. It is created at regular intervals (typically monthly or as defined in the Communication Management Strategy) to summarize stage progress, status, and any issues or risks. This is a core activity within Controlling a Stage, where the Project Manager monitors and reports on stage performance.

Answer

Managing a Stage Boundary

Answer

Starting Up a Project

Answer

Managing Product Delivery

Question 8

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

Accepted Answer

SU creates the Project Brief; IP creates the Project Initiation Documentation. The clearest distinction is the primary output: Starting Up a Project (SU) produces the Project Brief, which justifies the project and defines the outline business case, while Initiating a Project (IP) produces the Project Initiation Documentation (PID), which contains the detailed business case, plans, controls, and strategies. SU is the pre-project gate; IP is the first stage of the actual project. This output-based distinction is the defining difference.

Answer

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

Answer

SU includes risk management; IP does not

Answer

SU is optional; IP is mandatory

Question 9

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

Accepted Answer

The Team Manager. The Checkpoint Report is produced by the Team Manager during the Managing Product Delivery process. It provides the Project Manager with regular updates on the progress of a Work Package. The Team Manager is responsible for executing the Work Package and reporting progress via Checkpoint Reports.

Answer

The Project Manager

Answer

The Project Board

Answer

The Senior User

Question 10

What is the difference between the Starting Up a Project (SU) and Initiating a Project (IP) processes?

Accepted Answer

SU produces the Project Brief; IP produces the Project Initiation Documentation. In PRINCE2, Starting Up a Project (SU) is the pre-project process that produces the Project Brief and the Project Product Description, ensuring the project is worth initiating. Initiating a Project (IP) then builds on the Project Brief to produce the Project Initiation Documentation (PID), which includes the Business Case, plans, controls, and risk approach. The PID is the baseline against which the project is managed.

Answer

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

Answer

SU authorises the project; IP authorises the initiation stage

Answer

There is no difference; they are the same process

Question 11

A project is forecast to exceed its cost tolerance for the current stage. According to PRINCE2, what should the Project Manager do?

Accepted Answer

Raise an Exception Report to the Project Board and await their direction. According to PRINCE2, when a stage is forecast to exceed its cost tolerance, the Project Manager must escalate the issue to the Project Board by raising an Exception Report. This triggers a formal decision process where the Board can authorize a revised Stage Plan or take other corrective action. Continuing without escalation violates the management by exception principle.

Answer

Increase the project budget to absorb the additional cost and continue with the current Stage Plan

Answer

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

Answer

Continue with the current Stage Plan and report the cost overrun in the next Highlight Report

Question 12

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

Accepted Answer

End Stage Report. In PRINCE2, the Managing a Stage Boundary process prepares the information the Project Board needs to decide whether to authorize the next stage, and one of its key outputs is the End Stage Report (option B), which summarizes stage performance against the Stage Plan and business case to support that decision. The process also produces an Exception Plan (option C) when the stage or project has breached tolerances and the Project Board has requested a plan to recover from the exception, replacing the remainder of the current Stage Plan. Option A (Project Brief) is produced during Starting up a Project, not Managing a Stage Boundary. Option D (Highlight Report) is produced during Controlling a Stage as a progress report to the Project Board. Option E (Lessons Log) is created during Starting up a Project and maintained throughout the project, not produced as an output of Managing a Stage Boundary.

Answer

Project Brief

Answer

Highlight Report

Answer

Lessons Log

Question 13

Who should perform Project Assurance to ensure independence from the Project Manager?

Accepted Answer

Project Board members (or their delegates). Project Assurance is a PRINCE2 role that provides independent oversight of the project on behalf of the Project Board. To ensure independence from the Project Manager, it must be performed by Project Board members or their delegates, who are not part of the project management team and can objectively assess the project's performance and compliance.

Answer

Team Manager

Answer

Project Support

Answer

Project Manager

Question 14

In PRINCE2, what is the difference between a risk owner and a risk actionee?

Accepted Answer

The risk owner is accountable for the risk; the risk actionee performs the risk response actions. In PRINCE2, the risk owner is the person accountable for managing a specific risk, including selecting and monitoring the response. The risk actionee is the person assigned to carry out the actual response actions, often under the risk owner's direction. They are distinct roles, though in small projects they may be the same person.

Answer

The risk owner is a member of the Project Board; the risk actionee is a team member

Answer

The risk owner identifies the risk; the risk actionee implements the response

Answer

They are the same role

Question 15

A Team Manager is assigned a Work Package. The Team Manager realizes that the work cannot be completed within the agreed tolerances. What should the Team Manager do?

Accepted Answer

Raise an Issue Report to the Project Manager. In PRINCE2, the Team Manager works within the Work Package tolerances agreed with the Project Manager. If the Team Manager forecasts that the work will breach those tolerances, the correct escalation path is to raise an Issue Report to the Project Manager, who then decides whether to handle it at project level or escalate further. The Team Manager does not go directly to the Project Board.

Answer

Take corrective action to bring the work back within tolerance

Answer

Continue working and report the issue in the next Checkpoint Report

Answer

Raise an Exception Report to the Project Board