PRINCE2F Practice Exam 62 — 20 Questions

Question 1

A project is in the Initiation Stage. The project manager is creating the Project Plan and needs to define the project's products and activities. Which PRINCE2 principle should guide the level of detail included in the plan?

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

Accepted Answer

Tailor to suit the project environment. The PRINCE2 principle 'Tailor to suit the project environment' guides the level of detail in plans. It requires adapting the method to the project's specific needs, so the Project Plan's detail should reflect the project's size, complexity, and risk.

Answer

Manage by exception

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Focus on products

Answer

Learn from experience

Question 2

You are the project manager for a PRINCE2 project to develop a new mobile application. You are establishing the project's organization structure. According to PRINCE2, which TWO roles are part of the project board? (Choose two.)

Accepted Answer

Executive. The project board in PRINCE2 consists of three core roles: Executive, Senior User, and Senior Supplier. The Executive represents the business, the Senior User represents the users, and the Senior Supplier represents the suppliers. These roles are accountable for the project's success. The Project Manager, Team Manager, and Project Assurance are not board members.

Answer

Project Assurance

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Team Manager

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Project Manager

Question 3

A project is in the Initiation Stage. The project manager needs to create a plan for the next stage, which is a delivery stage. Which PRINCE2 plan should be produced?

Accepted Answer

Stage Plan. The project manager should produce a Stage Plan for the next delivery stage. Stage Plans are created for each management stage, except the Initiation Stage, which is covered by the Project Plan. They provide the detailed planning necessary to manage the stage effectively.

Answer

Project Plan

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Team Plan

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Exception Plan

Question 4

During a project, the Project Manager is preparing for a stage boundary. The Project Board has requested an updated business case to decide whether to continue. The Project Manager has gathered the necessary information and updated the business case. According to PRINCE2, what should the Project Manager do next with the updated business case?

Accepted Answer

Submit it to the Project Board for approval as part of the End Stage Report. At a stage boundary, the Project Manager must provide the Project Board with an End Stage Report and an updated Business Case. The Board reviews these to decide whether to approve the next stage. Submitting the updated business case as part of this process is essential for the Board to assess the ongoing viability of the project and make an informed decision on continuation.

Answer

Update the Benefits Review Plan with the new information

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File it in the project's documentation for audit purposes

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Send it to the Senior User for benefit validation

Question 5

A project is in the initiation stage. The project manager is developing the business case and needs to ensure it contains all the required elements according to PRINCE2. Which TWO of the following are components of the business case? (Choose two.)

Accepted Answer

Expected benefits and dis-benefits. The business case in PRINCE2 includes the reasons why the project is needed and the expected benefits and dis-benefits. These elements are essential for justifying the project and for enabling the Project Board to make informed decisions about its continuation. Other components such as organization structure, communication plan, and risk management approach are documented elsewhere in the PID, not in the business case itself.

Answer

Details of the project's organization structure

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The project's communication plan

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The project's risk management approach

Question 6

You are the project manager for a PRINCE2 project to implement a new payroll system. During the 'Starting up a Project' process, you are drafting the outline Business Case. The Executive has asked you to include the project's expected benefits. Which of the following should you include in the outline Business Case?

Accepted Answer

A summary of the expected benefits and how they will be measured. The outline Business Case should include a summary of the expected benefits and how they will be measured, as this provides an initial justification for the project. In this payroll system project, benefits such as cost savings and improved accuracy must be outlined, with measures to track them, to allow the Project Board to decide whether to proceed to the next stage.

Answer

A complete risk register with all identified risks and responses

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A detailed project plan with all activities, dependencies, and resources

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A detailed cost-benefit analysis with net present value calculations

Question 7

During a PRINCE2 project, the project manager is updating the Business Case at a stage boundary. The project board has asked for a summary of the project's costs, benefits, and risks. Which document should the project manager use to provide this information?

Accepted Answer

Business Case. The Business Case is the document that contains the business justification, including costs, benefits, and risks. It is updated at stage boundaries and used by the project board to assess the project's viability. Other documents like the Benefits Management Approach, Project Plan, and End Stage Report serve different purposes and do not provide the comprehensive summary required.

Answer

Benefits Management Approach

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Project Plan

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End Stage Report

Question 8

A PRINCE2 project is in the Initiation Stage. The project manager is preparing the Project Initiation Documentation (PID). Which of the following is a responsibility of the project board during this stage?

Accepted Answer

Approving the Project Initiation Documentation.. During the Initiation Stage, the project board's key responsibility is to approve the PID, which includes the Business Case, plans, and controls. This approval allows the project to proceed. The project board does not write the PID or its components; that is the project manager's role. The board provides direction and makes decisions at key points.

Answer

Creating the project plan.

Answer

Writing the detailed Business Case.

Answer

Producing the End Project Report.

Question 9

During the Initiation Stage, the project manager is developing the project plan. The project board has expressed concern that the plan does not clearly show how the project will achieve its benefits. Which element of the project plan should the project manager ensure is included to address this concern?

Accepted Answer

Project justification. The project plan should include project justification, which explains how the project will achieve its benefits. This section links the project's products to the expected outcomes and benefits, providing clarity on benefit realization. Other elements like product descriptions or schedules do not directly explain benefit achievement. The benefits management approach is a separate document, not part of the project plan.

Answer

Benefits management approach

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Product descriptions

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Schedule and milestones

Question 10

A PRINCE2 project is in the Managing a Stage Boundary process. The project manager is preparing the End Stage Report and the updated Business Case. The project board has requested that the project manager also provide a plan for the next stage. Which of the following should the project manager include in the Next Stage Plan?

Accepted Answer

The detailed costs, timescales, and resource requirements for the next stage. The Next Stage Plan contains the detailed costs, timescales, and resource requirements for the next stage. It is used by the project board to authorize the next stage. Other options like the business justification, organization structure, and benefits management approach are not part of the Next Stage Plan; they belong to other documents.

Answer

The benefits management approach

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The business justification for the project

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The project's organization structure

Question 11

A project is in the Starting up a Project process. The project manager is preparing the Daily Log and the Lessons Log. The Executive asks which product will later be used to capture the project's justification, including expected benefits and costs, at the initiation stage. Which product should the project manager identify?

Accepted Answer

The Business Case. The Business Case is the product that captures the justification for the project, including benefits, costs, risks, and the investment appraisal. It is developed during Initiating a Project and is part of the Project Initiation Documentation. The Project Brief contains only an outline business case, and the Benefits Management Approach deals with measuring benefits rather than justifying the project.

Answer

The Project Initiation Documentation

Answer

The Benefits Management Approach

Answer

The Project Brief

Question 12

A project is approaching an End Stage Assessment. The Project Manager has identified that the Business Case is still viable, but the Senior User has raised a concern that the expected benefits may be reduced due to a change in market conditions. What should the Project Manager do with this information?

Accepted Answer

Include the concern in the End Stage Report and present it to the Project Board for a decision on whether to continue.. The End Stage Report is used to summarise stage performance and highlight issues affecting the Business Case. The Senior User's concern about reduced benefits is material and must be presented to the Project Board so it can decide whether to continue, change or stop the project. Updating the Benefits Review Plan alone or taking no action would bypass governance, while asking the Senior User to revise the Business Case misassigns responsibility.

Answer

Take no action because the Business Case is still viable and market conditions are outside the project's control.

Answer

Update the Benefits Review Plan to reflect the reduced benefits and proceed to the next stage without escalation.

Answer

Ask the Senior User to revise the Business Case and resubmit it for approval before the End Stage Assessment.

Question 13

A project is in the Initiation Stage. The project manager is creating the Project Plan and needs to define the project's products and activities. Which PRINCE2 principle should guide the level of detail included in the plan?

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

Accepted Answer

The next Stage Plan can be produced as part of the Initiating a Project process, but it cannot be approved until the Project Board has authorised the project and the Project Initiation Documentation.. The first Stage Plan is normally produced during Initiating a Project so that the Project Board can authorise both the project and its first stage. It is not approved until the Project Initiation Documentation is approved. Producing it later, or assigning it to the Board, misplaces both the timing and the responsibility defined in PRINCE2.

Answer

The next Stage Plan must be produced only after the Project Board has approved the Project Initiation Documentation and authorised the project, as part of Managing a Stage Boundary.

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The next Stage Plan is produced by the Project Board during the Directing a Project process, because the Board owns all stage-level planning.

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The next Stage Plan is not needed until the first delivery stage begins, because the Project Plan already contains sufficient detail for day-to-day control.

Question 14

During the Starting up a Project process, the Project Manager is drafting the outline Business Case. The Executive has provided a summary of the expected benefits, but the Project Manager is unsure whether to include a detailed cost-benefit analysis at this stage. What should the Project Manager do?

Accepted Answer

Include a high-level estimate of costs and benefits, and note that these will be refined during Initiating a Project.. During Starting up a Project, the outline Business Case provides a high-level justification with estimated costs, benefits, risks and timescales. It is expected to be refined during Initiating a Project when the full Business Case is developed. Including high-level estimates and noting that they will be refined is the correct approach, as it gives the Project Board sufficient information to decide whether to initiate.

Answer

Include a full cost-benefit analysis because the Business Case must be complete before the project can be initiated.

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Postpone the Business Case entirely until the Project Board approves the Project Brief.

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Include only the expected benefits and omit any cost information until the project is initiated.

Question 15

A project is in the Initiation Stage. The project manager is creating the Project Plan and needs to define the project's products and activities. Which PRINCE2 principle should guide the level of detail included in the plan?

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

Accepted Answer

The Business Case. The Business Case is the component of the Project Initiation Documentation that provides the business justification for the project. It captures the reasons, benefits, costs, risks, and timescales, and is reviewed throughout the project to confirm continued viability. The Project Plan, Benefits Review Plan, and Risk Management Approach support delivery and control but do not replace the Business Case.

Answer

The Project Plan

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The Risk Management Approach

Answer

The Benefits Review Plan

Question 16

A programme manager is setting up a new PRINCE2 project to develop a mobile banking app. The project will use a supplier to build the app, and the programme manager wants to ensure that the project has the right level of direction and management. Which PRINCE2 principle is being applied when the project is established with a defined organization structure that includes a Project Board with clear roles and responsibilities?

Accepted Answer

Defined roles and responsibilities. The defined roles and responsibilities principle ensures that projects have a clear organizational structure with defined roles, such as the Project Board, Project Manager, and Team Manager. By establishing a Project Board with clear roles, the programme manager applies this principle to provide direction and management for the mobile banking app project.

Answer

Manage by exception

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Focus on products

Answer

Tailor to suit the project environment

Question 17

A project is nearing the end of a stage. The project manager forecasts that the stage will exceed its cost tolerance by 10 percent due to an unexpected increase in material prices. The project manager has already updated the Business Case to reflect the new costs. What should the project manager do NEXT?

Accepted Answer

Produce an Exception Report and escalate to the project board. When a stage is forecast to exceed its tolerances, the project manager must escalate the issue by producing an Exception Report. The project board then decides on the appropriate action, which may include approving an Exception Plan, changing tolerances, or stopping the project. Updating the Business Case alone is not enough; the formal escalation is required to maintain management by exception.

Answer

Inform the project board and wait for their decision

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Request a change to the project's cost tolerance

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Update the stage plan and continue without escalation

Question 18

You are the Project Manager of a project that has just completed its first delivery stage. At the End Stage Assessment, the Project Board reviews the Business Case and notes that the forecast costs have risen by 12 percent while the expected benefits remain unchanged. The Board asks what the project should do to maintain alignment with the Business Case. Which action is MOST appropriate?

Accepted Answer

Review the Business Case to confirm the project remains viable and, if necessary, escalate the decision to the Project Board for a continue, change or stop decision.. The Business Case must be reviewed at each End Stage Assessment and on significant changes. A 12 percent cost increase with unchanged benefits can undermine the investment appraisal, so the Project Manager should reassess viability and escalate to the Project Board for a continue, change or stop decision, preserving the continued business justification principle.

Answer

Proceed to the next stage as planned because the business case tolerance for benefits has not been exceeded.

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Update the Business Case with the new cost forecast and continue, treating the increase as a normal variance within stage tolerances.

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Stop the project immediately because the cost increase invalidates the original Business Case and no further work can be justified.

Question 19

During the Initiation Stage of a PRINCE2 project, the project manager is preparing the Project Initiation Documentation (PID). The project board has requested that the PID include the Business Case, the Project Plan, and the Project Product Description. Which statement best describes the purpose of the Project Product Description within the PID?

Accepted Answer

It describes the purpose, composition, derivation, and quality criteria of the project's final product.. The Project Product Description defines the project's final product, including its purpose, composition, derivation, quality criteria, and acceptance criteria. It is a key component of the PID and ensures a common understanding of the project's output. The other options describe the Benefits Review Plan or Project Plan, or overstate the scope of the Project Product Description. Therefore, the correct answer is the one that accurately describes its content.

Answer

It provides a detailed schedule of the project's activities and resources required.

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It defines the project's products and their quality criteria, and it is used to create the Project Plan.

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It outlines the benefits that the project will deliver and how they will be measured.

Question 20

A project is in the Initiation Stage. The project manager is creating the Project Plan and needs to define the project's products and activities. Which PRINCE2 principle should guide the level of detail included in the plan?

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

Accepted Answer

The Business Case. The Business Case is the PID component that documents the justification for the project, linking outcomes to corporate strategy and confirming viability. The Executive owns it and uses it to make the authorise-the-project decision. Other PID components such as the Project Product Description, Benefits Review Plan, and Risk Management Approach support delivery but do not provide the strategic and viability justification required.

Answer

The Project Product Description

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The Risk Management Approach

Answer

The Benefits Review Plan