PRINCE2F Practice Exam 60 — 20 Questions

Question 1

A PRINCE2 project is midway through the 'Managing a Stage Boundary' process. The Project Manager is preparing the End Stage Report for the Project Board. The Board has asked for assurance that the project remains aligned with corporate strategy and that the Business Case is still viable. Which PRINCE2 principle is MOST directly supported by the Project Board's review of the updated Business Case at this point?

Choose an answer to begin — your selection is scored in the full session.

Accepted Answer

Continued business justification. The Project Board's review of the updated Business Case at a stage boundary is a direct application of the continued business justification principle, which mandates that the project remains aligned with strategy and that the Business Case is viable. This principle ensures the project is stopped if justification disappears. The other principles are important but are not the primary focus of this specific activity.

Answer

Learn from experience

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Tailor to suit the project environment

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Manage by exception

Question 2

A project manager is leading a project to develop a new customer relationship management system. The Project Board has set tolerances for time and cost, and the project manager is expected to manage the project within these limits. Which PRINCE2 principle is being applied when the project manager only escalates issues that exceed these tolerances?

Accepted Answer

Manage by exception. Manage by exception is the PRINCE2 principle that enables the Project Board to set tolerances and delegate authority to the project manager, who then manages within those limits and escalates only when an exception is forecast. This principle ensures efficient use of management time and provides clear escalation paths. In the scenario, the project manager is operating within the time and cost tolerances set by the Project Board, and only escalates issues that exceed these tolerances, which is a direct application of manage by exception.

Answer

Learn from experience

Answer

Tailor to suit the project environment

Answer

Continued business justification

Question 3

You are the project manager for a PRINCE2 project to upgrade a hospital's patient records system. During the 'Initiating a Project' process, you are developing the Business Case theme. The executive has asked you to ensure that the business case includes a clear justification for the project. Which of the following must be included in the Business Case to meet PRINCE2 requirements?

Accepted Answer

The reasons why the project is needed, including expected benefits and risks. The Business Case in PRINCE2 must include the reasons for the project, expected benefits, and risks to justify the investment. It is not a repository for schedules, team lists, or quality criteria. These belong to other themes. The correct content ensures the project remains viable and aligned with business objectives.

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The detailed quality criteria for each deliverable

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A list of all team members and their responsibilities

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A detailed project schedule with Gantt chart

Question 4

A PRINCE2 project to develop a new software system is in the initiation stage. The Project Manager is reviewing the project's approach to controlling changes. The Project Board is concerned that changes to requirements are being made without assessing their impact on the business case. Which PRINCE2 principle is most directly violated if changes are made without such assessment?

Accepted Answer

Continued business justification. The continued business justification principle mandates that the project remains aligned with its Business Case. Any change must be evaluated for its impact on the Business Case to ensure the project still delivers value. Allowing changes without such assessment undermines this principle, making it the most directly violated.

Answer

Learn from experience

Answer

Manage by stages

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Manage by exception

Question 5

A project manager is leading a small PRINCE2 project to develop a mobile application. The project board has agreed to combine the initiation stage and the first delivery stage because the project is straightforward and low-risk. Which PRINCE2 principle is being applied by combining these stages?

Accepted Answer

Tailor to suit the project environment. The tailor to suit the project environment principle allows PRINCE2 to be adapted to the project's size, complexity, and risk. Combining the initiation stage and first delivery stage for a small, low-risk project is a tailoring decision that makes the method proportionate and efficient, ensuring that PRINCE2 is applied appropriately.

Answer

Manage by stages

Answer

Continued business justification

Answer

Learn from experience

Question 6

A project manager is working on a construction project. The project board has set a tolerance for cost, but the project manager has been given authority to manage the project within that tolerance without seeking approval for every decision. However, the project manager must escalate to the board if the tolerance is forecast to be exceeded. Which PRINCE2 principle is being applied?

Accepted Answer

Manage by exception. Manage by exception is the principle that enables the project board to set tolerances and delegate authority to the project manager. The project manager only escalates when a tolerance is forecast to be exceeded. This is exactly what the scenario describes, making it the correct principle. The other principles are not directly demonstrated by the tolerance-setting and escalation process.

Answer

Continued business justification

Answer

Learn from experience

Answer

Define roles and responsibilities

Question 7

A project is in the 'Managing a Stage Boundary' process. The project manager needs to update the Business Case to reflect a change in the estimated costs. Who is responsible for approving the updated Business Case?

Accepted Answer

Project Board. The Project Board is responsible for approving the Business Case at each stage boundary. This ensures that the project remains viable and aligned with business objectives. The Project Manager prepares and updates the Business Case, but approval rests with the Project Board. The Senior User and Executive are members of the Project Board but do not individually approve the Business Case. The collective decision of the Board provides the necessary governance.

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Senior User

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Project Manager

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Executive

Question 8

A project manager is leading a project to implement a new data center. The project board has emphasized the need to 'tailor to suit the project environment' because the project is using an agile delivery approach for some components. Which activity best demonstrates the application of this principle?

Accepted Answer

Adapting the 'learn from experience' principle by using retrospectives at the end of each agile iteration to capture lessons.. Tailoring means adapting PRINCE2 to the project's environment while still applying all principles. Using retrospectives to capture lessons is a valid way to apply 'learn from experience' in an agile context. This demonstrates that the principle can be fulfilled through techniques that align with the delivery approach, rather than being rigidly applied.

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Removing the 'focus on products' principle because agile backlogs are prioritized instead.

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Combining the project board and project manager roles to speed up decision-making.

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Omitting the 'manage by stages' principle because agile methods use iterations.

Question 9

A project manager is leading a project to implement a new CRM system. During a stage boundary, the project board asks the project manager to provide evidence that the project is still aligned with the organisation's strategic objectives. Which PRINCE2 principle is the project board applying?

Accepted Answer

Continued business justification. The continued business justification principle mandates that the project's business case is reviewed at stage boundaries to confirm ongoing alignment with strategic objectives. The project board's request for evidence is a direct application of this principle. The other principles are not directly related to the board's request for strategic alignment evidence.

Answer

Tailor to suit the project environment

Answer

Manage by stages

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Focus on products

Question 10

A PRINCE2 project is in the Initiating a Project process. The project manager is preparing the Business Case and needs to define the senior decision-making authority who will be accountable for the project's success and represent the business interests. Which role should be appointed to fulfill this responsibility?

Accepted Answer

Executive. In PRINCE2, the Executive is the single point of accountability for the project and represents the business perspective. The Executive is responsible for ensuring that the project delivers the expected benefits and remains aligned with the business case. The Project Manager, Senior User, and Senior Supplier have distinct roles but do not hold this overarching accountability.

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Senior User

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Senior Supplier

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Project Manager

Question 11

A project manager is preparing the Business Case for a new project. The Executive has asked for a summary of the expected benefits and how they will be measured. Which PRINCE2 principle emphasizes the need for a continued business justification?

Accepted Answer

Continued business justification. The principle of continued business justification ensures that a PRINCE2 project has a valid Business Case that is reviewed and updated throughout the project. This principle directly supports the Executive's request for a summary of expected benefits and how they will be measured. Other principles like manage by stages or learn from experience are important but do not specifically emphasize ongoing justification. The Business Case must demonstrate that the project remains viable.

Answer

Learn from experience

Answer

Tailor to suit the project environment

Answer

Manage by stages

Question 12

A project is midway through the 'Managing a Stage Boundary' process. The project manager is preparing the End Stage Report and needs to update the Business Case. The senior user has confirmed that one of the originally planned benefits is no longer achievable due to a change in market conditions. What should the project manager do FIRST?

Accepted Answer

Assess the impact on the Business Case and include the revised forecast in the End Stage Report for the project board to review.. At each stage boundary, the Business Case is updated to reflect current circumstances. When a benefit becomes unachievable, the project manager must assess the impact on the overall Business Case and present the revised version in the End Stage Report. The project board then decides whether the project remains viable. Unilaterally removing benefits or escalating for closure without assessment bypasses proper governance.

Answer

Update the Benefits Review Plan to remove the unachievable benefit and continue with the stage boundary.

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Ask the senior user to identify a replacement benefit and update the Business Case without involving the project board.

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Immediately escalate to the project board and recommend that the project be closed because a benefit is no longer achievable.

Question 13

A project manager is reviewing the project's approach to applying the PRINCE2 principle 'focus on products'. Which TWO of the following actions directly support this principle? (Choose two.)

Accepted Answer

Defining the project's products, including their quality criteria, before planning the activities to create them.. Focus on products means that the project is defined and driven by its products. This requires defining products and their quality criteria before planning activities, and using product descriptions to capture purpose, composition, and quality criteria. These actions ensure that planning and execution are directed towards delivering the required outputs, rather than just completing activities. Measuring progress by product delivery, not activity completion, is also essential.

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Measuring progress primarily by the number of activities completed rather than by the delivery of products.

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Allowing products to be defined after the activities that create them have been completed.

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Creating a detailed activity schedule before identifying any project products.

Question 14

During a project, the project manager identifies that a key supplier is consistently failing to meet quality standards. The project manager needs to escalate this issue to the project board. Who on the project board is accountable for the quality of the supplier's products and should be involved in resolving this issue?

Accepted Answer

Senior Supplier. The Senior Supplier is the project board role accountable for the quality of products delivered by suppliers. This role represents the supplier's interests and ensures that the supplier's resources are properly allocated and that products meet the required quality standards. When a supplier consistently fails to meet quality standards, the project manager should escalate the issue to the Senior Supplier, who can take appropriate action within the supplier organization.

Answer

Executive

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Project Manager

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Senior User

Question 15

A project manager is leading a project to implement a new data warehouse. The project board has agreed to use PRINCE2 but wants to reduce documentation and combine some management products. Which PRINCE2 principle allows the project manager to adapt the method in this way?

Accepted Answer

Tailor to suit the project environment. The PRINCE2 principle 'tailor to suit the project environment' allows the method to be adapted to the specific context of the project. This includes scaling documentation and combining management products where appropriate, while ensuring that the principles are still applied. Tailoring helps make PRINCE2 practical and proportionate, avoiding unnecessary bureaucracy for smaller or less complex projects.

Answer

Continued business justification

Answer

Manage by exception

Answer

Learn from experience

Question 16

A project manager is preparing for a project board meeting and needs to present the current status of the project's business justification. Which document contains the business justification for the project, including the reasons for undertaking the project and the expected benefits?

Accepted Answer

Business Case. The Business Case is the document that contains the business justification for the project. It explains why the project is needed, what benefits are expected, and how they will be measured. It also includes costs, risks, and timescales. The Business Case is updated at each stage boundary and is used by the project board to make informed decisions about the project's continuation.

Answer

Project Initiation Documentation

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Benefits Review Plan

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End Stage Report

Question 17

A PRINCE2 project is underway to implement a new customer relationship management system. The Project Manager has been delegated authority by the Project Board to manage the project within defined tolerances. During a stage, the Project Manager forecasts that the stage will exceed its cost tolerance. What should the Project Manager do according to the PRINCE2 principle of manage by exception?

Accepted Answer

Escalate the forecast breach to the Project Board and request a decision.. The manage by exception principle requires the Project Manager to escalate to the Project Board when a tolerance is forecast to be exceeded. In this case, the cost tolerance is at risk, so the Project Manager must raise an exception report and seek a decision. The other options either ignore the need to escalate or involve actions outside the Project Manager's authority.

Answer

Wait until the end of the stage to see if the overspend actually occurs before taking any action.

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Increase the stage tolerance by using the change budget.

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Take corrective action to bring the stage back within tolerance without informing the Project Board.

Question 18

A project is in the Initiating a Project process. The project manager is assembling the Project Initiation Documentation (PID). Which TWO components of the PID are specifically concerned with the Business Case theme? (Choose two.)

Accepted Answer

Business Case. The Business Case theme is addressed by two specific components within the PID: the Business Case itself and the Benefits Management Approach. The Business Case provides the justification, while the Benefits Management Approach outlines how benefits will be measured and realized. Other PID components like the Project Plan, Risk Management Approach, and Quality Management Approach belong to different themes.

Answer

Project Plan

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Quality Management Approach

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Risk Management Approach

Question 19

A project is in the Initiating a Project process. The project manager is preparing the Business Case. The Executive has asked for a concise summary of the estimated costs, timescales, and expected benefits for the project board. Which PRINCE2 product should contain this information?

Accepted Answer

Business Case. The Business Case is the central PRINCE2 document that justifies the project and contains the estimated costs, timescales, and expected benefits. It is developed during Initiating a Project and is used by the project board to confirm that the project remains desirable, viable, and achievable.

Answer

End Project Report

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Benefits Management Approach

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Project Brief

Question 20

You are the project manager of a PRINCE2 project to implement a new customer relationship management system. The project board has just approved the project initiation documentation. During the first delivery stage, the supplier informs you that a key software component will cost 30% more than planned. This increases the total project cost beyond the approved budget by 15%. According to PRINCE2, what should you do FIRST?

Accepted Answer

Raise an exception report to the project board because the stage-level tolerance for cost has been exceeded.. In PRINCE2, the project manager has authority to manage within agreed tolerances. When a forecast shows that a tolerance (e.g., cost) will be exceeded, the project manager must escalate by raising an exception report to the project board. The board, which owns the business case, then decides whether to approve an exception plan, change the project, or stop it. This maintains the principle of manage by exception.

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Log the increased cost as a risk in the risk register and monitor it at the next stage boundary.

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Instruct the supplier to find cost savings elsewhere to keep the project within budget.

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Update the business case to reflect the increased costs and continue with the project as planned.