PRINCE2F Practice Exam 58 — 20 Questions

Question 1

Which TWO are part of the Project Initiation Documentation?

Accepted Answer

Business Case. The Project Initiation Documentation (PID) is the PRINCE2 document that assembles the baseline for the project, and it explicitly includes the Business Case (option C), which justifies the project in terms of benefits, costs, risks, and timescales, and the Project Plan (option D), which describes how and when the project's objectives will be achieved. Both are core components of the PID, along with items such as the project definition, organization, controls, and risk approach. The Exception Report (option A) is a progress-control document produced only when a stage or project deviates from tolerance, so it is not part of the PID. The End Stage Report (option B) is produced at the end of a management stage to summarize performance and is not part of the PID. The Checkpoint Report (option E) is a regular progress report from a team manager to the project manager and likewise is not part of the PID.

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Exception Report

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End Stage Report

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Checkpoint Report

Question 2

During the Managing a Stage Boundary process, the project manager produces an End Stage Report. Who receives this report and what decision do they make?

Accepted Answer

The project board receives it to decide whether to authorize the next stage. The End Stage Report is produced during the Managing a Stage Boundary process and is presented to the project board. The project board reviews the report to decide whether to authorize the next stage, based on the stage's performance and continued business justification. This decision is a key governance responsibility of the project board in PRINCE2.

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The project manager receives it to plan the next stage

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The team manager receives it to assess work package performance

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The executive receives it to update the business case

Question 3

The Project Board is considering a request to close a project early due to loss of business justification. Which process is the Project Board using to make this decision?

Accepted Answer

Directing a Project. The Project Board is the directing layer of the PRINCE2 organization, and all its decisions—including premature closure due to loss of business justification—are made within the Directing a Project process. Directing a Project provides the authority for the Board to make key decisions such as authorizing initiation, stage boundaries, project closure, and early termination. Closing a Project is the process used to execute the closure once the decision has been made, not the process in which the decision is taken.

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Managing a Stage Boundary

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Closing a Project

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Starting Up a Project

Question 4

In the Change practice, what is the purpose of a Product Status Account?

Accepted Answer

To report on the current status of one or more products. In PRINCE2's Change practice, a Product Status Account is a report that provides information on the current status of one or more products — for example, their version, status (draft, approved, baselined), and any changes applied. It is a reporting/visibility artifact, not a record-keeping or authorization mechanism. It answers 'what state are these products in right now?' for the project board or change authority.

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To record configuration item records

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To track issues

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To authorize changes to products

Question 5

A Project Manager is preparing the Project Initiation Documentation. In which process is this work done?

Accepted Answer

Initiating a Project. The Project Initiation Documentation (PID) is created during the Initiating a Project process. This process takes the Project Brief and the authorization from the Project Board and develops the detailed business case, project plan, risk management approach, quality management approach, and other baseline documents that together form the PID. It is the process where the project is fully defined before delivery begins.

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Starting Up a Project

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Directing a Project

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Managing Product Delivery

Question 6

Which process is used by the Project Board to give ad-hoc direction to the Project Manager?

Accepted Answer

Directing a Project. The Directing a Project process is used by the Project Board to make key decisions and provide ad-hoc direction to the Project Manager. It covers the activities from project start-up to closure, including authorizing stages, giving ad-hoc direction, and authorizing project closure.

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Managing Product Delivery

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Managing a Stage Boundary

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Controlling a Stage

Question 7

A project is forecast to exceed its stage cost tolerance. What is the Project Manager's first action?

Accepted Answer

Raise an Exception Report to the Project Board. According to PRINCE2, when a project manager forecasts that stage costs will exceed the agreed stage tolerance, the first action is to raise an Exception Report to the Project Board. This is because the project manager must escalate the deviation immediately, as they do not have authority to exceed tolerance without board approval. The Exception Report informs the board of the situation and options, allowing them to decide on corrective action.

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Continue the stage and report the overrun in the End Stage Report

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Request a change to the project budget from the Senior User

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Proceed with the next stage early to save time

Question 8

During the Managing a Stage Boundary process, which document is produced to seek approval to proceed to the next stage?

Accepted Answer

End Stage Report. The Managing a Stage Boundary process is triggered at the end of each stage (except the final one) to provide the Project Board with the information needed to approve the next stage. Its key output is the End Stage Report, which summarizes the stage's performance against the Stage Plan and supports the Project Board's decision to authorize the next stage. The End Stage Report is accompanied by the Next Stage Plan and an updated Business Case.

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Exception Report

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Benefits Review Plan

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Project Brief

Question 9

Which TWO roles are members of the Project Board?

Accepted Answer

Executive. The Executive (A) is correct because in PRINCE2 the Project Board is composed of three roles representing the business, user, and supplier interests, with the Executive chairing the board and owning the business case. The Senior Supplier (C) is correct because this role represents the supplier interest on the Project Board, providing authority and commitment for the supplier resources and ensuring the project delivers fit-for-purpose products. The Project Manager (B), Team Manager (D), and Project Support (E) are not Project Board members; they are project management team roles that report to or support the board rather than sitting on it, with the Project Manager managing the project on the board's behalf and the Team Manager and Project Support operating below that level.

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Project Manager

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Team Manager

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Project Support

Question 10

During which process are the Benefits Management Approach and the Project Plan created?

Accepted Answer

Initiating a Project. The Benefits Management Approach and the Project Plan are both created during the Initiating a Project process. This process is part of the PRINCE2 methodology where the project's foundation is established, including the business case, project plan, and benefits management approach.

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Managing a Stage Boundary

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Directing a Project

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Starting Up a Project

Question 11

The Project Manager is planning the next stage and needs to define the order in which products will be developed. Which product-based planning technique should they use?

Accepted Answer

Product Flow Diagram. The Product Flow Diagram shows the sequence and dependencies of product development.

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Gantt chart

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Work Breakdown Structure

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Product Breakdown Structure

Question 12

Who is responsible for the day-to-day management of project risks?

Accepted Answer

Project Manager. The Project Manager is responsible for the day-to-day management of risks, including maintaining the Risk Register and coordinating risk responses. Option A is wrong because the Executive owns the Business Case, not risk management. Option B is wrong because the Risk Actionee implements a specific risk response, not overall management. Option D is wrong because the Risk Owner is assigned for a specific risk and is accountable for its management, but the Project Manager handles day-to-day activities.

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Executive

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Risk Actionee

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Risk Owner

Question 13

Which register records all identified risks and their status?

Accepted Answer

Risk Register. The Risk Register is the repository for all risk management information throughout the project.

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Issue Register

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Lessons Log

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Quality Register

Question 14

A project is in the Managing a Stage Boundary process. Which of the following is produced during this process?

Accepted Answer

End Stage Report. The Managing a Stage Boundary process is triggered at the end of each stage (except the final one) and produces the End Stage Report, which summarizes stage performance and feeds the Project Board's decision to authorize the next stage. It also produces the next Stage Plan and an updated Project Plan and Business Case.

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Exception Report

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Highlight Report

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Project Brief

Question 15

Who is responsible for authorizing the initiation of a project?

Accepted Answer

Project Board. In PRINCE2, the Project Board is responsible for authorizing the initiation of a project. This is because the Project Board represents the business, user, and supplier interests and has the authority to commit resources and approve the project's initiation stage. The Project Manager prepares the initiation documentation, but only the Project Board can give the formal authorization to proceed.

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Team Manager

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Project Manager

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Senior User

Question 16

A program manager is reviewing a new project that will digitize thousands of paper records. She notes that the business case is documented, but the project manager has not confirmed how the project will align with the organization's strategic objectives. Which PRINCE2 principle requires the project to have continued business justification, and what does that principle mandate in this situation?

Accepted Answer

Continued business justification; the project manager must ensure the business case is documented, approved, and reviewed throughout the project to confirm ongoing viability.. The principle of continued business justification requires that a project has a documented, approved business case that is reviewed and updated throughout the project lifecycle. In this scenario, the project manager must ensure the business case is not only documented but also aligned with strategic objectives and remains viable. This principle ensures that projects are only initiated and continued when there is a valid reason to do so.

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Learn from experience; the project manager must review historical records for lessons learned before proceeding.

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Manage by exception; the project manager must escalate the lack of strategic alignment to the project board for a decision.

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Tailor to suit the project environment; the project manager must adapt the business case format to the organization's standards.

Question 17

A project manager for a regulatory compliance project is defining the project's organization structure. The project board includes a senior user who represents the operations team that will use the new system. During a board meeting, the senior user insists on adding a new reporting requirement that was not in the original business case. The project manager needs to ensure that the project remains aligned with PRINCE2 principles. Which principle should guide the project manager's response to this request?

Accepted Answer

Continued business justification. When a change is proposed, PRINCE2 requires that the project's business justification remains valid. The principle of continued business justification ensures that any new requirement is assessed against the business case, and if it no longer aligns, the project may need to be stopped or revised. This principle is fundamental to maintaining project viability.

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Manage by exception

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Defined roles and responsibilities

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Learn from experience

Question 18

A project manager for a PRINCE2 project is establishing the project's organization structure. The executive has asked the project manager to define the roles and responsibilities of the project board, including who will represent the business, user, and supplier interests. The project manager must also ensure that the project board members understand their accountability. Which PRINCE2 principle is being applied when defining the project board roles and responsibilities?

Accepted Answer

Defined roles and responsibilities. The defined roles and responsibilities principle ensures that a project has a clear organizational structure with defined roles, responsibilities, and accountability. In this scenario, defining the project board roles and ensuring they represent business, user, and supplier interests directly applies this principle, which is crucial for effective governance and decision-making.

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Focus on products

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Learn from experience

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Manage by stages

Question 19

A project board is reviewing the PRINCE2 principles to ensure the project is compliant. They note that the project has a business case, but it was created at the start and has not been updated since. Which PRINCE2 principle is being violated?

Accepted Answer

Continued business justification. The principle of continued business justification mandates that a PRINCE2 project must have a justifiable business case that is reviewed and updated at key points, such as stage boundaries. A static business case that is not revisited can lead to a project continuing without valid justification. The scenario describes exactly that, so the violated principle is continued business justification.

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Manage by stages

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Focus on products

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Learn from experience

Question 20

A project is being managed using PRINCE2. The project manager wants to ensure that the project is divided into manageable chunks, with each chunk having a clear plan and a decision point for the project board. Which PRINCE2 principle is being applied?

Accepted Answer

Manage by stages. The Manage by stages principle requires that a PRINCE2 project is planned, monitored, and controlled on a stage-by-stage basis. Each stage has a Stage Plan and ends with a decision point for the project board to authorize the next stage. This approach provides regular opportunities to reassess the Business Case and project viability. The scenario's description of dividing the project into manageable chunks with plans and decision points directly reflects this principle.

Answer

Continued business justification

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Learn from experience

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Manage by exception