PRINCE2F Practice Exam 56 — 20 Questions

Question 1

In the product-based planning approach, what is the purpose of the Product Breakdown Structure (PBS)?

Accepted Answer

To identify all the products needed for the project. The PBS is a hierarchical decomposition of all products to be created. It helps identify all deliverables. The Product Flow Diagram shows dependencies, and Product Descriptions define quality criteria. The Project Plan is not a direct output of the PBS.

Answer

To define the quality criteria for each product

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To show the order in which products will be created

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To provide the cost estimate for each product

Question 2

Which document is the key output of the Initiating a Project process?

Accepted Answer

Project Initiation Documentation. The Initiating a Project process is focused on establishing a solid foundation for the project, and its key output is the Project Initiation Documentation (PID). The PID consolidates all essential information—such as the business case, project plan, risk register, and project controls—into a single, approved document that defines the project's scope, objectives, and governance. This document is used to obtain authorization to proceed with the project's delivery stages.

Answer

Exception Report

Answer

Project Brief

Answer

End Stage Report

Question 3

What is the purpose of a Checkpoint Report?

Accepted Answer

To provide the Project Manager with information on team progress. The Checkpoint Report is a PRINCE2 management product used by the Team Manager to report on team-level progress to the Project Manager at a frequency defined in the Work Package. Its purpose is to provide the Project Manager with information on team progress, including completed work, planned activities, and any issues or risks, enabling informed decision-making without escalating to the Project Board.

Answer

To provide the Project Board with information on stage progress

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To report an exception to the Project Board

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To document lessons learned

Question 4

Who is responsible for approving the Project Plan?

Accepted Answer

Project Board. The Project Plan is approved by the Project Board as part of the PID approval.

Answer

Senior User

Answer

Project Manager

Answer

Executive

Question 5

In PRINCE2, what is the difference between Project Assurance and Project Support?

Accepted Answer

Project Assurance is independent of the Project Manager; Project Support assists the Project Manager. Project Assurance provides an independent check that the project is being conducted properly, reporting directly to the Project Board, while Project Support assists the Project Manager with administrative and coordination tasks. This separation ensures objectivity in oversight without compromising the Project Manager's authority.

Answer

Project Assurance focuses on risks; Project Support focuses on quality

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There is no difference

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Project Assurance is performed by the Project Board; Project Support is performed by the Project Manager

Question 6

During the Managing a Stage Boundary process, the Project Manager produces a revised Stage Plan for the next stage. What else must be produced as part of this process?

Accepted Answer

End Stage Report. During the Managing a Stage Boundary process, the Project Manager must produce an End Stage Report to summarize the current stage's performance against its plan, along with the revised Stage Plan for the next stage. The End Stage Report provides the Project Board with the information needed to assess whether to authorize the next stage, as defined in PRINCE2's process model.

Answer

End Project Report

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Highlight Report

Answer

Exception Report

Question 7

Who is responsible for maintaining the Business Case throughout the project?

Accepted Answer

Senior Responsible Owner (Executive). The Senior Responsible Owner (Executive) is the ultimate owner of the Business Case and is responsible for its development and maintenance throughout the project. PRINCE2 mandates that the Executive ensures the Business Case remains viable, justified, and aligned with corporate strategy at every stage, approving any changes to it.

Answer

Project Assurance

Answer

Project Manager

Answer

Senior User

Question 8

Which TWO of the following are opportunity responses in PRINCE2?

Accepted Answer

Enhance. In PRINCE2, opportunity responses are specific actions to address opportunities (positive risks). 'Enhance' is a correct response because it involves proactively increasing the probability and/or impact of an opportunity, such as allocating additional resources to maximize a potential benefit. 'Exploit' is also correct as it seeks to ensure the opportunity is realized by making it happen, often by assigning ownership or implementing a specific plan.

Answer

Transfer

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Reduce

Answer

Avoid

Question 9

What is the difference between a Request for Change and an Off-specification?

Accepted Answer

Request for Change is for new requirements; Off-specification is for defects. A Request for Change is a proposal for a change to a product that has been baselined; an Off-specification is a product that does not meet its specification.

Answer

Request for Change is for minor changes; Off-specification is for major changes

Answer

Off-specification is raised by the Project Board; Request for Change is raised by the Project Manager

Answer

They are synonyms

Question 10

Who is responsible for ensuring that Project Assurance is performed?

Accepted Answer

Project Board. The Project Board is accountable for the project and must ensure that independent assurance is in place. The Executive (SRO) often appoints assurance roles, but ultimate responsibility lies with the Project Board.

Answer

Project Manager

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Senior Supplier

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Team Manager

Question 11

Which THREE of the following are typical components of a Business Case?

Accepted Answer

Major risks. Options A, C, and D are correct. A Business Case typically includes reasons, expected benefits, dis-benefits, costs, timescales, major risks, and investment appraisal. Option B is incorrect because the PID is a separate document that contains the Business Case but is not itself a component of the Business Case. Option E is incorrect because team roles are part of the Organising practice.

Answer

Project Initiation Documentation

Answer

Project management team roles

Question 12

Which TWO of the following are types of issue in PRINCE2?

Accepted Answer

Request for Change. In PRINCE2, an issue is a relevant event that has occurred and requires management attention. The three defined types of issue are Request for Change (C), Off-specification (E), and Problem/Concern. Option C is correct because a Request for Change is a formal proposal for a modification to a product's specification or baseline, which is a standard type of issue in the PRINCE2 issue management procedure.

Answer

Opportunity

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Lesson

Answer

Risk

Question 13

Who is responsible for providing independent assurance that the project is being managed correctly?

Accepted Answer

Project Board (via Project Assurance). In PRINCE2, the Project Board is ultimately accountable for the project's success, and it delegates the task of providing independent assurance to the Project Assurance role. This ensures that the project is being managed correctly, in line with the business case, and that all management stages are compliant with PRINCE2 principles. The Project Board (via Project Assurance) is the correct answer because it is the only role with the authority to provide objective, independent oversight, separate from the day-to-day management performed by the Project Manager.

Answer

Team Manager

Answer

Project Manager

Answer

Project Support

Question 14

During the Managing a Stage Boundary process, the Project Manager produces an End Stage Report. What is the primary purpose of this report?

Accepted Answer

To provide information for the Project Board to decide on proceeding to the next stage. The primary purpose of the End Stage Report in the Managing a Stage Boundary process is to provide the Project Board with a summary of the stage's performance against the plan, including progress, issues, and risks, so they can make an informed decision on whether to authorize the next stage. This aligns with PRINCE2's principle of management by stages, where the board reviews stage-end information to confirm continued business justification.

Answer

To document lessons learned for future projects

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To request additional budget for the next stage

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To hand over completed products to the customer

Question 15

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 before proceeding. When a tolerance is forecast to be exceeded, the Project Manager must escalate to the Project Board via an Exception Report. This is the principle of management by exception.

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 16

Which process includes the activity of 'Authorize Work Packages'?

Accepted Answer

Controlling a Stage. Authorizing Work Packages is an activity in the Controlling a Stage process, where the Project Manager assigns work to Team Managers.

Answer

Directing a Project

Answer

Managing Product Delivery

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Starting Up a Project

Question 17

Which TWO of the following describe the role of Project Assurance?

Accepted Answer

Assures the Project Board that the project is on track. Project Assurance is an independent role that checks the project is on track and cannot be delegated to the Project Manager. It supports the Board.

Answer

Provides administrative support to the project team

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Reports to the Project Board via Highlight Reports

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Manages the delivery of Work Packages

Question 18

Which risk response is appropriate for a threat that can be mitigated by transferring the financial impact to a third party?

Accepted Answer

Transfer. Transfer involves shifting the financial impact of a risk to a third party, e.g., through insurance or contract.

Answer

Avoid

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Reduce

Answer

Accept

Question 19

Which of the following describes the relationship between Project Assurance and Project Support?

Accepted Answer

Project Assurance is independent; Project Support provides admin services. Project Assurance is an independent role that provides objective oversight to ensure the project remains viable and compliant with PRINCE2 principles, while Project Support is an administrative role that handles tasks like planning tools, filing, and configuration management. The independence of Project Assurance from the Project Manager is critical to avoid conflicts of interest, whereas Project Support serves the Project Manager and the team. This separation ensures that assurance activities are unbiased and that support services are efficient.

Answer

Project Assurance reports to the Project Manager; Project Support reports to the Project Board

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Project Assurance and Project Support are the same role

Answer

Project Assurance is part of Project Support

Question 20

What is the key difference between Project Assurance and quality review?

Accepted Answer

Project Assurance is a role; quality review is a technique. Project Assurance is an independent, ongoing role providing objective oversight to the Project Board. Quality review is a specific technique for reviewing product quality at defined points.

Answer

Project Assurance focuses on the Business Case; quality review focuses on the project plan

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Project Assurance is performed by the Project Manager; quality review is performed by the team

Answer

Project Assurance is done at the end of a stage; quality review is done continuously