PRINCE2F Practice Exam 63 — 20 Questions

Question 1

Which TWO of the following are characteristics of a project as defined by PRINCE2?

Accepted Answer

It delivers unique products. PRINCE2 defines a project as a temporary organization created to deliver one or more business products according to an agreed business case. The key characteristic is that the products delivered are unique—meaning they are not routine or repetitive outputs—which distinguishes a project from ongoing operations. This uniqueness applies to the product itself, the context, or the team composition, even if similar products have been built before.

Answer

It delivers business as usual

Answer

It has no defined end date

Answer

It involves a permanent team

Question 2

During the Controlling a Stage process, the Project Manager identifies that the stage's cost tolerance is forecast to be exceeded. According to PRINCE2, what should the Project Manager do?

Accepted Answer

Raise an Exception Report to the Project Board and await their direction before proceeding. According to PRINCE2, when a stage's cost tolerance is forecast to be exceeded, the Project Manager must escalate the issue to the Project Board by raising an Exception Report. This is because the Project Manager does not have authority to exceed the agreed tolerance; the Project Board must decide whether to approve a revised Stage Plan or take other corrective action. Continuing without escalation or making unauthorized adjustments violates the management by exception principle.

Answer

Increase the stage budget using the change budget and continue with the current Stage Plan

Answer

Close the project immediately as the Business Case is no longer viable

Answer

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

Question 3

Which THREE of the following are activities performed during the Controlling a Stage process?

Accepted Answer

Review progress against the Stage Plan. Authorizing Work Packages, reviewing progress, and managing risks and issues are key activities of Controlling a Stage. Producing the End Stage Report is done in Managing a Stage Boundary, and producing the Project Plan is done in Initiating a Project.

Answer

Produce the Project Plan

Answer

Produce the End Stage Report

Question 4

Which PRINCE2 principle emphasizes that a project should have continued business justification?

Accepted Answer

Continued Business Justification. Continued Business Justification is one of the seven PRINCE2 principles, ensuring the project remains viable throughout.

Answer

Manage by Stages

Answer

Learn from Experience

Answer

Focus on Products

Question 5

Which statement best describes the difference between Starting Up a Project (SU) and Initiating a Project (IP)?

Accepted Answer

SU appoints the Project Board and Project Manager, while IP develops the PID. Starting Up a Project (SU) is the process that ensures the prerequisites for initiating a project are in place, including appointing the Project Board and Project Manager. Initiating a Project (IP) then develops the Project Initiation Documentation (PID), which formalizes the project's scope, plans, and controls. Thus, D correctly distinguishes the key outputs of these two processes.

Answer

SU produces the Stage Plan for the initiation stage, while IP produces the Project Plan

Answer

SU is performed by the Project Board, while IP is performed by the Project Manager

Answer

SU selects the project mandate, while IP develops the project brief

Question 6

Which TWO of the following are outputs of the Starting Up a Project process?

Accepted Answer

Project Brief. The Starting Up a Project process is the first process in PRINCE2, executed before the project is formally initiated. Its purpose is to ensure that the project has a viable business justification and that the necessary resources are available. The Project Brief is a key output, providing a high-level overview of the project's scope, objectives, and approach. The Daily Log is also an output, used to record informal issues, actions, and events during the project's early stages.

Answer

Risk Register

Answer

Benefits Management Approach

Answer

Project Initiation Documentation (PID)

Question 7

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

Accepted Answer

Project Manager. The Project Manager is responsible for maintaining the Business Case throughout the project because PRINCE2 assigns this role to the Project Manager as part of the 'Managing a Stage Boundary' and 'Directing a Project' processes. The Project Manager ensures the Business Case remains viable by updating it with actual costs, benefits, and risks, and by presenting it to the Project Board for approval at key decision points. This is distinct from the Executive, who owns the Business Case but delegates its day-to-day maintenance to the Project Manager.

Answer

Executive

Answer

Senior User

Answer

Project Board

Question 8

Refer to the exhibit. The project board is reviewing the End Stage Report for Stage 2 and the Stage Plan for Stage 3. The Stage Plan for Stage 3 exceeds the agreed cost tolerance. According to PRINCE2, what should the project board do?

Accepted Answer

Ask the project manager to produce an Exception Plan for Stage 3. According to PRINCE2, when a Stage Plan exceeds the agreed cost tolerance, the project board cannot approve it. Instead, the project manager must produce an Exception Plan that describes the options to bring the stage back within tolerance or to request a revised tolerance. This is a formal exception management process defined in the PRINCE2 manual.

Answer

Approve the Stage Plan as it is, since Stage 2 was completed within tolerance

Answer

Reject the Stage Plan and ask the project manager to terminate the project

Answer

Lower the cost tolerance for Stage 3 to match the plan

Question 9

A project is in the Controlling a Stage process. The project manager receives a request from a team manager to change the design specification because of a technical difficulty. The change would not affect the stage plan or the business case. What should the project manager do first?

Accepted Answer

Log the issue in the Issue Register and assess the impact. According to PRINCE2, when a team manager raises a technical difficulty that could result in a change, the project manager must first log it as an issue in the Issue Register. Only after logging and assessing the impact can the project manager decide on the appropriate response. Since the change does not affect the stage plan or business case, the project manager can handle it within the stage without escalating to the project board.

Answer

Update the Risk Register and create a risk response

Answer

Escalate the issue to the project board for a decision

Answer

Instruct the team manager to proceed with the change

Question 10

In which process is the Benefits Management Approach first created?

Accepted Answer

Initiating a Project. The Benefits Management Approach is created during the Initiating a Project process because this process establishes the detailed plans and controls needed to manage the project, including how benefits will be realized and measured. It is not created earlier because the project mandate and outline business case in Starting Up a Project are too preliminary to define measurable benefits criteria.

Answer

Directing a Project

Answer

Starting Up a Project

Answer

Managing a Stage Boundary

Question 11

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

Accepted Answer

To enable the Project Board to review the current stage and approve the next. The Managing a Stage Boundary process is designed to provide the Project Board with sufficient information to review the current stage's performance, approve the next stage plan, and update the project plan and business case. It ensures that the project remains viable before committing resources to the next stage, making D the correct answer.

Answer

To manage the day-to-day activities of the stage

Answer

To close the project

Answer

To plan the project at a high level

Question 12

Which role is responsible for managing the delivery of a Work Package?

Accepted Answer

Team Manager. The Team Manager is responsible for managing the delivery of a Work Package within a PRINCE2 project. This role coordinates the team members, ensures the work is completed according to the agreed specifications, and reports progress back to the Project Manager. The Team Manager acts as the direct interface between the project management team and the team members executing the work.

Answer

Senior User

Answer

Project Assurance

Answer

Project Manager

Question 13

Who is responsible for providing independent assurance to the Project Board that the project is on track?

Accepted Answer

Project Assurance. Project Assurance provides independent oversight, reporting to the Project Board, and cannot be delegated to the Project Manager.

Answer

Project Support

Answer

Project Manager

Answer

Team Manager

Question 14

Which TWO roles are part of the Project Board?

Accepted Answer

Senior User. The Project Board is the decision-making body of a PRINCE2 project, and its mandatory roles are the Executive, Senior User, and Senior Supplier. The Senior User (Option C) is correct because they represent the interests of those who will use the project's outputs and are responsible for specifying requirements and ensuring the project delivers the expected benefits. The Executive (Option D) is correct as they own the business case and have ultimate authority over the project.

Answer

Team Manager

Answer

Project Manager

Answer

Project Support

Question 15

During the Controlling a Stage process, the Project Manager receives a Checkpoint Report showing that a Work Package is behind schedule. What should the Project Manager do first?

Accepted Answer

Assess the impact on the stage plan and take corrective action if within tolerance. The Project Manager should assess the impact of the delay on the stage plan. If the deviation can be managed within stage tolerances, the PM will take corrective action. If tolerances are forecast to be exceeded, escalation is needed.

Answer

Raise an Exception Report immediately

Answer

Inform the Project Board in the next Highlight Report

Answer

Request a new Work Package from the Team Manager

Question 16

What is the key difference between the Starting Up a Project (SU) and Initiating a Project (IP) processes?

Accepted Answer

SU is done before the project is formally initiated; IP establishes the project's foundations. The Starting Up a Project (SU) process occurs before the project is formally initiated, focusing on verifying the project's viability and creating the Project Brief. The Initiating a Project (IP) process then establishes the project's foundations by creating the Project Initiation Documentation (PID), which includes detailed plans and controls. Thus, the key difference is that SU is a pre-initiation process, while IP formally establishes the project's management foundation.

Answer

SU involves the Project Board; IP involves the Project Manager only

Answer

SU is optional; IP is mandatory

Answer

SU produces the PID; IP produces the Project Brief

Question 17

In PRINCE2, what is the difference between a risk owner and a risk actionee?

Accepted Answer

The risk owner is accountable for the risk; the risk actionee carries out the response actions. In PRINCE2, the risk owner is the person who is accountable for the risk, meaning they are responsible for ensuring that the risk is managed and that appropriate responses are implemented. The risk actionee, on the other hand, is the person who carries out the specific response actions defined in the risk response plan. This distinction ensures clear accountability and task execution within the risk management process.

Answer

The risk owner is the person who identified the risk; the risk actionee is the person who monitors it

Answer

They are the same role

Answer

The risk owner is always a member of the Project Board; the risk actionee is always a team member

Question 18

During the Controlling a Stage process, a Team Manager reports that a Work Package is behind schedule. What should the Project Manager do first?

Accepted Answer

Review the situation and, if within tolerance, approve corrective action. The Project Manager should assess the situation and decide whether to escalate based on tolerance. If it's within tolerance, they can approve corrective action.

Answer

Raise an Exception Report to the Project Board

Answer

Issue a Change Request to modify the Work Package

Answer

Approve an extension to the Work Package

Question 19

Which report is produced by the Team Manager and sent to the Project Manager on a regular basis?

Accepted Answer

Checkpoint Report. The Checkpoint Report is produced by the Team Manager and sent to the Project Manager to report progress at the work package level.

Answer

Highlight Report

Answer

End Stage Report

Answer

Exception Report

Question 20

The Project Board consists of three roles. Which of the following is NOT a mandatory role on the Project Board?

Accepted Answer

Project Manager. The mandatory roles are Senior User, Senior Supplier, and Senior Responsible Owner. The Project Manager is not a member of the Project Board.

Answer

Senior Responsible Owner (Executive)

Answer

Senior Supplier

Answer

Senior User