PRINCE2F Practice Exam 52 — 20 Questions

Question 1

During the Controlling a Stage process, the Project Manager identifies that the project is forecast to exceed the agreed cost tolerance for the current stage. What should the Project Manager do?

Accepted Answer

Raise an Exception Report to the Project Board and await their direction before proceeding. According to the management by exception principle, when a stage tolerance is forecast to be exceeded, the Project Manager must escalate to the Project Board via an Exception Report. The Project Manager cannot unilaterally increase the budget or ignore the breach.

Answer

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

Answer

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

Answer

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

Question 2

In PRINCE2, what is the key difference between the Project Assurance role and a quality review?

Accepted Answer

Project Assurance is a role, while quality review is a technique. Project Assurance is a role defined in PRINCE2, responsible for ensuring the project remains viable and compliant with its business justification, while a quality review is a technique used to assess the quality of a product or deliverable. The key difference is that Project Assurance is an ongoing role performed by individuals independent of the Project Manager, whereas a quality review is a specific, time-boxed event or technique for inspecting deliverables. Option A correctly identifies this fundamental distinction between a role and a technique.

Answer

There is no difference; they are the same thing

Answer

Project Assurance is performed by the Project Manager, while quality review is performed by external auditors

Answer

Project Assurance focuses on the Business Case, while quality review focuses on the project plan

Question 3

How often should the Project Board meet during a PRINCE2 project?

Accepted Answer

At the end of each stage and when exceptions occur. Project Board meetings are held at key decision points (end of stages) and when exceptions occur. They are not scheduled at regular intervals but are exception-driven.

Answer

Only at the end of the project

Answer

Monthly

Answer

Weekly

Question 4

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

Accepted Answer

Making decisions on exception situations. The Project Board is accountable for the project's success, approves stage plans, and provides direction. The PM manages day-to-day, and assurance is delegated.

Answer

Performing project assurance activities

Answer

Managing day-to-day activities

Question 5

Which THREE of the following are characteristics of a project according to PRINCE2?

Accepted Answer

It creates a unique product. PRINCE2 defines a project as a temporary organization created to deliver one or more business products according to an agreed business case. The uniqueness of the product is a core characteristic, meaning the output is not a routine or repetitive item but something new or different, which distinguishes a project from ongoing operations.

Answer

It produces repetitive outputs

Answer

It must be delivered within a fixed budget

Question 6

A Senior Supplier is concerned that a proposed change will impact the project's technical feasibility. What should the Senior Supplier do?

Accepted Answer

Escalate the concern to the Project Board for a decision. The Senior Supplier is a member of the Project Board and should raise their concern at the Project Board meeting or via an Exception Report if the change requires Board decision. The Senior Supplier ensures that supplier interests are represented.

Answer

Issue a Change Request directly to the Project Manager

Answer

Approve the change as it aligns with the Business Case

Answer

Update the Project Plan to reflect the change

Question 7

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. Management by exception requires escalation via an Exception Report to the Project Board when a tolerance is forecast to be exceeded.

Answer

Continue and report in the next Highlight Report

Answer

Increase the project budget and continue

Answer

Close the project immediately

Question 8

Who is responsible for authorising the initiation of a project?

Accepted Answer

Project Board. The Project Board (in the Directing a Project process) is responsible for authorising project initiation, as well as authorising the project itself.

Answer

Project Manager

Answer

Team Manager

Answer

Senior User

Question 9

What is the purpose of the Managing a Stage Boundary process?

Accepted Answer

To enable the Project Board to review progress and approve the next stage. The Managing a Stage Boundary process is designed to provide the Project Board with the information needed to review the current stage's performance, assess the updated Business Case, and approve the next Stage Plan. This process ensures that the project remains viable and aligned with business objectives before committing resources to the next stage. Option C correctly captures this review and approval purpose.

Answer

To produce the Project Plan

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To manage the work of the current stage

Answer

To close the project

Question 10

During the Managing a Stage Boundary process, the project manager produces an End Stage Report for the current stage and a Stage Plan for the next stage. However, the project board rejects the Stage Plan. What is the project manager's next course of action according to PRINCE2?

Accepted Answer

Issue an Exception Report to the project board recommending project closure. When the Project Board rejects the Stage Plan during the Managing a Stage Boundary process, the project cannot proceed as intended. PRINCE2 requires the Project Manager to issue an Exception Report to the Project Board, recommending project closure if the plan is not approved, because the project has no authorized plan to continue and the board must decide whether to close or take alternative action.

Answer

Revise the Stage Plan and resubmit it to the project board

Answer

Escalate to the program or corporate management for a decision

Answer

Proceed with the next stage as planned, then report to the project board at the next review

Question 11

A project's Stage Plan shows the work for the next stage. Which plan details the work for a team to produce one or more products?

Accepted Answer

Team Plan. A Team Plan is created by the Team Manager to detail the work needed to deliver the products assigned in a Work Package. Stage Plans cover an entire stage; the Project Plan covers the whole project; Exception Plans replace a plan when tolerances are exceeded.

Answer

Stage Plan

Answer

Exception Plan

Answer

Project Plan

Question 12

Who is responsible for authorising the initiation of a project?

Accepted Answer

Project Board. In PRINCE2, the Project Board is collectively responsible for authorizing the initiation of a project. This decision is made during the 'Directing a Project' process, where the Project Board reviews the Project Brief and decides whether to proceed to the Initiation Stage. The Project Board's authority is derived from the corporate or programme management, but the actual authorization to initiate is a board-level responsibility.

Answer

Executive

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Corporate management

Answer

Project Manager

Question 13

A Team Manager sends a Checkpoint Report to the Project Manager. Which process is the Team Manager executing?

Accepted Answer

Managing Product Delivery. The Team Manager is executing the 'Managing Product Delivery' process because this process controls the work of the team, including the creation and delivery of products. A key activity within this process is the production of Checkpoint Reports, which provide the Project Manager with progress updates on the work assigned to the team. The Checkpoint Report is a formal PRINCE2 management product that is specifically defined as an output of the 'Managing Product Delivery' process.

Answer

Managing a Stage Boundary

Answer

Controlling a Stage

Answer

Directing a Project

Question 14

In the PRINCE2 risk management procedure, what is the immediate next step after assessing a risk?

Accepted Answer

Plan. In the PRINCE2 risk management procedure, after assessing a risk (which includes evaluating its probability and impact), the immediate next step is to plan risk responses. This step involves identifying and selecting appropriate responses to address the risk, such as avoid, reduce, transfer, or accept. Option A is correct because planning directly follows assessment to determine how to manage the risk before any implementation or communication occurs.

Answer

Implement

Answer

Communicate

Answer

Identify

Question 15

In a project using PRINCE2, the project board is reviewing the End Stage Report. They notice that the actual costs are significantly lower than planned, but the scope is complete. What should the project board do?

Accepted Answer

Review the End Stage Report and decide whether to authorize the next stage. The project board's primary responsibility is to review the End Stage Report and decide whether to authorize the next stage based on continued business justification, not solely on cost performance. Being under budget with scope complete does not automatically trigger an exception plan or immediate authorization; the board must assess the overall viability, risks, and lessons learned before proceeding. Option D correctly reflects the PRINCE2 principle of continued business justification and the board's decision-making authority at stage boundaries.

Answer

Request an exception plan to reallocate the surplus

Answer

Immediately authorize the next stage as the project is under budget

Answer

Ask the project manager to revise the project plan to increase costs

Question 16

Which THREE of the following are components of the defined project management team structure in PRINCE2?

Accepted Answer

Project Manager. The PRINCE2 project management team includes the Project Board (Executive, Senior User, Senior Supplier), Project Manager, Team Manager, and optional Project Support and Project Assurance. The Customer is not a role; the Senior User represents the customer. The Business Case is a practice, not a role.

Answer

Customer

Answer

Business Case

Question 17

During the Managing Product Delivery process, what does the Team Manager produce to inform the Project Manager of progress?

Accepted Answer

Checkpoint Report. In PRINCE2, the Team Manager produces a Checkpoint Report during the Managing Product Delivery process to inform the Project Manager of progress at a regular, predefined frequency. This report provides a snapshot of actual progress against the Work Package plan, including achievements, next steps, and any issues or risks. It is the primary mechanism for the Team Manager to communicate status to the Project Manager within this process.

Answer

Exception Report

Answer

End Stage Report

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Highlight Report

Question 18

During the Controlling a Stage process, the Project Manager receives a Highlight Report from a Team Manager. What should the Project Manager do with this information?

Accepted Answer

Review the report and use it to update the Stage Plan and produce the next Highlight Report for the Project Board. The Project Manager uses the Controlling a Stage process to monitor progress, review Highlight Reports, and report to the Project Board via Highlight Reports.

Answer

File the report and take no further action

Answer

Escalate any deviations immediately to the Project Board via an Exception Report

Answer

Forward the report directly to the Project Board as the next Highlight Report

Question 19

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

Accepted Answer

Preparing Highlight Reports for the Project Board. The Project Manager is responsible for preparing Highlight Reports to keep the Project Board informed of progress, achievements, and exceptions at regular intervals. Option E is correct because the Project Manager is accountable for the day-to-day management of the project, ensuring tasks are completed, risks are managed, and the project remains on track within the tolerances set by the Project Board.

Answer

Chairing the Project Board meetings

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Approving Stage Plans

Answer

Producing the Business Case

Question 20

Which component of the Business Case describes the expected measurable improvements resulting from the project?

Accepted Answer

Expected benefits. The 'Expected benefits' component of the Business Case in PRINCE2 specifically quantifies the measurable improvements that the project will deliver, such as increased revenue, reduced costs, or improved efficiency. These benefits must be defined in measurable terms to enable post-project evaluation against the Business Case. The other options describe different aspects: Reasons justify the project, Major risks identify uncertainties, and Dis-benefits document negative outcomes.

Answer

Reasons

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Major risks

Answer

Dis-benefits