PRINCE2F Practice Exam 59 — 20 Questions

Question 1

Which THREE of the following are elements of the PRINCE2 project management team?

Accepted Answer

Project Board. The PRINCE2 project management team includes the Project Board (Executive, Senior User, Senior Supplier), Project Manager, Team Manager, and optionally Project Assurance and Project Support. User group and Steering Committee are not PRINCE2 terms.

Answer

User Group

Answer

Steering Committee

Question 2

Which risk response is appropriate for a threat that the project team decides to proactively manage by reducing the probability or impact?

Accepted Answer

Reduce. Reduce is the correct risk response because it involves implementing actions to lower the probability or impact of a threat while still accepting that the risk may occur. In PRINCE2, this is a proactive response where the project team actively manages the risk by, for example, adding redundancy or conducting more frequent testing to decrease the likelihood of failure. The key is that the risk is not eliminated entirely but its effects are mitigated.

Answer

Avoid

Answer

Transfer

Answer

Accept

Question 3

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

Accepted Answer

Raise an Exception Report to the Project Board. When a tolerance is forecast to be exceeded, the Project Manager must escalate to the Project Board via an Exception Report, following management by exception.

Answer

Increase the project budget to absorb the additional cost

Answer

Continue and report in the next Highlight Report

Answer

Close the project immediately

Question 4

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

Accepted Answer

Prepare the Stage Plan for approval by the Project Board. The Project Manager is responsible for preparing Stage Plans, which detail how a management stage will be executed, and submitting them to the Project Board for approval. This aligns with PRINCE2's principle of management by stages, where the Project Manager provides the detailed plan for the next stage.

Answer

Provide independent assurance

Answer

Approve the Project Initiation Documentation

Answer

Chair the Project Board meetings

Question 5

Which TWO of the following are PRINCE2 principles?

Accepted Answer

Learn from Experience. The PRINCE2 methodology is built on seven core principles that guide project management. 'Learn from Experience' (B) is a principle that requires the project team to actively seek and apply lessons learned from previous projects and throughout the current project's lifecycle. 'Focus on Products' (D) is another principle, emphasizing that a project is only successful if it delivers the defined products that meet the agreed-upon quality criteria, shifting the focus from activities to outputs.

Answer

Progress

Answer

Risk

Answer

Directing a Project

Question 6

In PRINCE2, who is responsible for preparing and updating the Highlight Report?

Accepted Answer

Project Manager. The Project Manager prepares the Highlight Report and sends it to the Project Board at regular intervals (e.g., weekly or monthly) to provide a summary of stage status.

Answer

Team Manager

Answer

Project Support

Answer

Senior User

Question 7

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

Accepted Answer

Project Initiation Documentation. The Initiating a Project process is where the project's baselines are established and the Project Initiation Documentation (PID) is created. The PID is the key output because it consolidates the business case, project plan, risk register, and controls, providing the foundation for project execution. Without the PID, the project cannot proceed to the next stage.

Answer

End Stage Report

Answer

Project Brief

Answer

Exception Report

Question 8

Which TWO of the following are responsibilities of the Project Manager in PRINCE2?

Accepted Answer

Producing the Project Plan. The Project Manager is responsible for producing the Project Plan, which includes the detailed schedule, resource allocation, and cost estimates. This is a core PRINCE2 responsibility, as the Project Manager owns the planning process and ensures the plan aligns with the project's business case and stage tolerances.

Answer

Ensuring the project meets user needs

Answer

Providing business assurance

Answer

Authorizing stage boundaries

Question 9

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

Accepted Answer

Senior Responsible Owner (Executive). The Senior Responsible Owner (SRO/Executive) is accountable for the Business Case and must ensure it remains viable throughout the project.

Answer

Project Support

Answer

Senior Supplier

Answer

Project Manager

Question 10

According to PRINCE2, who is responsible for maintaining the Business Case throughout the project?

Accepted Answer

The Project Manager. The Project Manager is responsible for maintaining the Business Case (keeping it up to date), while the Executive owns it and is accountable for its justification.

Answer

The Executive

Answer

The Project Assurance

Answer

The Senior User

Question 11

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

Accepted Answer

Project Manager. The Project Manager maintains the Business Case under the direction of the Executive. The Executive owns it, but the PM does the updates.

Answer

Project Assurance

Answer

Senior User

Answer

Executive

Question 12

Who is responsible for reviewing the End Stage Report and deciding whether to authorize the next stage?

Accepted Answer

Project Board. The Project Board is responsible for reviewing the End Stage Report and deciding whether to authorize the next stage. This is a key governance point in PRINCE2, where the Project Board assesses the current stage's performance against the plan and approves moving forward.

Answer

Project Manager

Answer

Executive

Answer

Senior User

Question 13

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

Accepted Answer

To plan the next stage and obtain Project Board approval. This process aims to provide the Project Board with information to review the current stage and approve the next stage plan.

Answer

To initiate the project

Answer

To close the project

Answer

To manage day-to-day activities

Question 14

Which role is ultimately accountable for the project's Business Case and its continued viability?

Accepted Answer

Senior Responsible Owner (Executive). The Senior Responsible Owner (Executive) is ultimately accountable for the project's Business Case and its continued viability because PRINCE2 defines this role as the single point of accountability for the project's justification. The Executive owns the Business Case throughout the project lifecycle, ensuring it remains aligned with corporate strategy and approving any changes that affect its viability. This accountability cannot be delegated to the Project Manager, who is responsible for day-to-day management but not for the business justification.

Answer

Project Manager

Answer

Senior User

Answer

Team Manager

Question 15

A project has completed all work but the Project Manager discovers that a key product was delivered with a minor defect that does not affect the Business Case. What should the Project Manager do during Closing a Project?

Accepted Answer

Record the defect in the Lessons Report and recommend closure. During CP, the PM should ensure all products are accepted. If a defect exists, it should be documented in the Lessons Report and an updated product status should be provided. The board decides acceptance.

Answer

Reject the product and request rework before closing

Answer

Raise an Exception Report to the Project Board

Answer

Close the project and ignore the defect

Question 16

Which TWO of the following activities are performed in the Starting Up a Project process?

Accepted Answer

Appoint the Executive and the Project Manager. Starting Up a Project includes appointing the Executive and Project Manager, and capturing lessons from previous projects. Authorising the project is done in Directing a Project. Producing the PID is done in Initiating a Project. Planning the next stage is done in Managing a Stage Boundary.

Answer

Produce the Project Initiation Documentation

Answer

Authorise the project

Answer

Plan the next management stage

Question 17

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. According to the management by exception principle, exceeding tolerance must be escalated to the Project Board via an Exception Report.

Answer

Continue and report in the next Highlight Report

Answer

Increase the budget to cover the overrun

Answer

Close the project immediately

Question 18

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

Accepted Answer

SU produces the Project Brief; IP produces the Project Initiation Documentation. Starting Up a Project (SU) is the pre-project process that produces the Project Brief, which includes the outline business case and project approach. Initiating a Project (IP) is the second process that produces the Project Initiation Documentation (PID), which contains the detailed plans, business case, and risk register needed to justify proceeding with the project. The key distinction is that SU creates the high-level Project Brief, while IP creates the comprehensive PID.

Answer

SU initiates the project; IP plans the first stage

Answer

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

Answer

SU authorizes the project; IP manages the project

Question 19

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 management by exception. The PM cannot increase the budget or continue without escalation.

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.

Answer

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

Question 20

In PRINCE2, what is the definition of quality?

Accepted Answer

Fit for purpose. In PRINCE2, quality is defined as 'fit for purpose,' meaning the product must meet the stated requirements and satisfy the user's needs. This definition aligns with the PRINCE2 principle of continued business justification, ensuring the product delivers value. It is broader than mere conformance to specifications, as it includes the user's perspective and context.

Answer

Customer satisfaction

Answer

Conformance to specifications

Answer

Zero defects