PRINCE2F Practice Exam 64 — 20 Questions

Question 1

A project manager is tailoring PRINCE2 for a small internal project. The project board wants to ensure that the 'Manage by Stages' principle is applied appropriately. Which TWO statements correctly describe how this principle is applied in PRINCE2? (Choose two.)

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

Accepted Answer

At least two management stages are required: one for initiation and one for delivery.. Manage by Stages means dividing the project into management stages, with a minimum of initiation and at least one delivery stage. Each management stage is authorized by the project board, which reviews the business case and approves the next stage plan. Stages may vary in length and are tailored to the project.

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Technical stages are the same as management stages and are used for reporting progress.

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Management stages must always be of equal duration to ensure consistent reporting.

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The project board delegates the authority to authorize each stage to the project manager.

Question 2

A project is in the Initiating a Project process. The project manager is drafting the Project Initiation Documentation (PID) and needs to define how the project will be controlled. The project board wants to delegate day-to-day decisions to the project manager but retain control over major deviations. Which PRINCE2 principle is being applied when the project board sets tolerances and defines escalation routes?

Accepted Answer

Manage by exception. Manage by exception is the principle that allows the project board to set tolerances and delegate authority to the project manager, with escalation only when tolerances are forecast to be breached. This keeps senior management focused on exceptions rather than day-to-day details. The other principles support clarity, adaptation, and learning, but none of them defines the delegation and escalation mechanism itself.

Answer

Define roles and responsibilities

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Tailor to suit the project environment

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Learn from experience

Question 3

During the Initiation Stage, the project manager is assembling the Project Initiation Documentation (PID). The project board has requested that the PID include the Business Case, the Project Plan, and the Benefits Review Plan. Which TWO additional components are also part of the PID? (Choose two.)

Accepted Answer

Risk Management Strategy. The PID is a collection of information that includes the Business Case, Project Plan, Benefits Review Plan, Project Product Description, Risk Management Strategy, Quality Management Strategy, Communication Management Strategy, Configuration Management Strategy, and project controls. The Project Product Description and Risk Management Strategy are both part of the PID. The Stage Plan, End Project Report, and Lessons Log are not included in the PID.

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Stage Plan for the Initiation Stage

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Lessons Log

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End Project Report

Question 4

A project manager is preparing to deliver a new payroll system. Senior management has not appointed anyone to the Project Board and has told the project manager to 'just get on with it and report to me if anything goes wrong'. Which PRINCE2 principle is being compromised by this instruction?

Accepted Answer

Defined roles and responsibilities. The principle of defined roles and responsibilities demands an explicit organisational structure, typically a Project Board with business, user and supplier representation plus defined project management roles. Telling the project manager to report to a single senior manager and proceed without a board strips out that accountability structure, so this is the principle being compromised.

Answer

Continued business justification

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Focus on products

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Manage by stages

Question 5

During the Initiation Stage, the project manager is reviewing the project's risk appetite with the project board. The board indicates that they are willing to accept only low risks. Which PRINCE2 principle is being applied when the project manager tailors the risk management approach to reflect this low risk tolerance?

Accepted Answer

Tailor to suit the project environment. The tailoring principle requires that PRINCE2 is adapted to the project's environment, including its risk appetite. By adjusting the risk management approach to reflect the board's low risk tolerance, the project manager is tailoring the method to suit the project. This ensures that the project's risk management is proportionate and effective.

Answer

Learn from experience

Answer

Continued business justification

Answer

Manage by stages

Question 6

A project is being initiated, and the Project Board is being assembled. The organization's senior leadership wants to ensure that the business interests are represented and that the project remains viable. Which role is specifically responsible for ensuring that the project delivers the business benefits defined in the Business Case?

Accepted Answer

Executive. The Executive is the key decision-maker and is ultimately accountable for the project's success, including the delivery of business benefits. The Senior User and Senior Supplier provide input and ensure user and supplier perspectives, but the Executive owns the Business Case and ensures alignment with organizational strategy.

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Senior User

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Project Manager

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Senior Supplier

Question 7

A project is in the 'Managing a Stage Boundary' process. The Project Manager has prepared the End Stage Report and the next Stage Plan. The Project Board is meeting to decide whether to approve the next stage. According to PRINCE2, which principle is being applied when the Project Board reviews the Business Case and decides whether to continue?

Accepted Answer

Continued business justification. At each stage boundary, the Project Board reviews the Business Case to ensure the project remains justified. This is a direct application of the continued business justification principle, which mandates that the Business Case is reviewed and updated at stage boundaries. The Board's decision to approve the next stage is based on this review, ensuring the project continues to deliver value. The other principles are not the primary driver for this specific decision point.

Answer

Learn from experience

Answer

Tailor to suit the project environment

Answer

Manage by exception

Question 8

A project is at the end of the Initiation Stage. The Project Manager has completed the Project Initiation Documentation (PID) and is preparing for the Project Board's decision. The Executive asks which document will be used to confirm that the project's products will be delivered with the required quality and that acceptance criteria are met. Which PID component should the Project Manager highlight?

Accepted Answer

The Project Product Description. The Project Product Description is the correct PID component because it specifies the final product's quality criteria, acceptance criteria, and acceptance methods. It directly confirms what will be delivered and how acceptance will be verified. The Quality Management Approach, Benefits Review Plan, and Risk Management Approach serve other purposes and do not contain the specific acceptance criteria for the project's products.

Answer

The Risk Management Approach

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The Benefits Review Plan

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The Quality Management Approach

Question 9

A project manager is starting a project to implement a new payroll system. The organization has a programme management office (PMO) that provides templates and standards. The project manager wants to ensure the project fits within the organization's broader governance and that lessons from similar projects are applied. Which PRINCE2 principle directly supports learning from previous projects and embedding the project in its organizational context?

Accepted Answer

Learn from experience. Learn from experience is the principle that requires the project to seek out and apply lessons from previous projects and from its own performance. Using PMO templates and reviewing similar payroll implementations directly demonstrates this principle. The other principles address viability, stage control, and product definition, but none of them specifically mandates organizational learning and contextual embedding.

Answer

Focus on products

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Manage by stages

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Continued business justification

Question 10

A project manager is leading a project to implement a new customer relationship management (CRM) system. During the 'Starting up a Project' process, the project manager is appointing the project team and creating the Project Brief. Which of the following is a key output of the 'Starting up a Project' process?

Accepted Answer

Project Brief. The Project Brief is the primary output of the Starting up a Project process. It contains the outline business case, project definition, and project approach, providing enough information for the Project Board to decide whether to initiate the project. The other documents are outputs of later processes.

Answer

Benefits Review Plan

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End Project Report

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Project Initiation Documentation

Question 11

A project manager is explaining the PRINCE2 principles to a new team member. Which TWO of the following are PRINCE2 principles that must be applied to every project? (Choose two.)

Accepted Answer

Manage by exception. The seven PRINCE2 principles are continued business justification, learn from experience, defined roles and responsibilities, manage by stages, manage by exception, focus on products, and tailor to suit the project environment. Continued business justification and manage by exception are both principles that must be applied to every project. The other options are activities or techniques, not principles.

Answer

Conduct a post-project review

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Appoint a full-time project manager

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Use a stage gate approval process

Question 12

A Project Manager is setting up the project's organization structure. They need to ensure that the Project Board members understand their responsibilities. Which TWO of the following are responsibilities of the Project Board? (Choose two.)

Accepted Answer

Approving the project initiation documentation. The Project Board is responsible for approving the project initiation documentation and authorizing project closure. These are key governance decisions that ensure the project remains aligned with business objectives and is formally closed. Day-to-day management, product creation, and work package assignment are delegated to the Project Manager and team.

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Managing the day-to-day activities of the project team

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Creating the project's products

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Assigning work packages to team members

Question 13

A project manager is leading a project to implement a new IT system for a client. The project is part of a programme, and the programme manager has asked the project manager to ensure that the project aligns with the programme's objectives. The project manager is also responsible for delivering the project's products. Which PRINCE2 principle is being applied when the project manager ensures that the project has a clear and agreed Business Case that is linked to the programme's benefits?

Accepted Answer

Continued business justification. Continued business justification is applied when the project manager ensures the project has a clear and agreed Business Case linked to the programme's benefits. This principle ensures the project remains aligned with strategic objectives and justifies its existence throughout its lifecycle, which is critical when the project is part of a larger programme.

Answer

Defined roles and responsibilities

Answer

Tailor to suit the project environment

Answer

Manage by stages

Question 14

During a project, the Project Board has decided to delegate some of its change control decisions to a Change Authority. The Project Manager needs to know who is responsible for authorizing changes that exceed the delegated authority. Who should make these decisions?

Accepted Answer

The Project Board. The Project Board is accountable for the project and sets the limits of any delegated authority. A Change Authority can only approve changes within the tolerances defined by the Project Board, so any change exceeding those limits must be escalated to the Project Board for a decision.

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The Senior User

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The Change Authority

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The Project Manager

Question 15

During a project to implement a new CRM system, the Project Manager identifies that a supplier will deliver a key component. The Project Manager needs to decide whether to use PRINCE2's 'managing a stage boundary' process or simply continue within the current stage. Which statement best explains the purpose of the 'managing a stage boundary' process?

Accepted Answer

To provide the Project Board with key decision points to assess whether the project remains viable and to approve the next stage.. The 'managing a stage boundary' process provides the Project Board with a key decision point at the end of each management stage. It allows them to review the stage's performance, confirm the Business Case remains valid, and approve the next Stage Plan. This ensures the project is still viable and aligned with business objectives before further investment, which is essential when external suppliers are involved.

Answer

To control the day-to-day delivery of the stage's products and manage the team's work.

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To close the project by confirming that all products have been delivered and accepted.

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To authorize the initiation of the project and approve the Project Initiation Documentation.

Question 16

A project is developing a new medical device. The project manager is reviewing the project's organization structure. The project board has three roles: Executive, Senior User, and Senior Supplier. The Executive is concerned about ensuring that the project delivers value for money. Which role is responsible for ensuring that the project delivers the required benefits as defined in the Business Case?

Accepted Answer

Senior User. In PRINCE2, the Senior User is accountable for ensuring that the project's products will deliver the benefits defined in the Business Case. This role represents the user community and is responsible for specifying user needs and confirming that the solution meets those needs and realizes the expected benefits.

Answer

Executive

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Project Manager

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Senior Supplier

Question 17

A project is in the Initiation Stage. The Project Manager is compiling the Project Initiation Documentation (PID) and must ensure that all required components are included. Which TWO of the following are components of the PID? (Choose two.)

Accepted Answer

The Risk Management Approach. The Communication Management Approach and the Risk Management Approach are both components of the PID, created during Initiating a Project to define how communication and risk will be managed. The Stage Plan for the Initiation Stage, the End Stage Report for the previous stage, and the Project Brief are not PID components; they belong to other processes or are inputs to initiation.

Answer

The Stage Plan for the Initiation Stage

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The Project Brief

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The End Stage Report for the previous stage

Question 18

During the Initiation Stage of a PRINCE2 project, the Project Manager is compiling the Project Initiation Documentation (PID). The Project Board has asked for assurance that the project will deliver the required products to the specified quality standards. Which component of the PID should the Project Manager include to provide this assurance?

Accepted Answer

Quality Management Approach. The Quality Management Approach is the PID component that details how quality will be managed, including standards, methods, and responsibilities. It gives the Project Board confidence that the project's products will meet requirements. Other components like the Project Plan and Business Case serve different purposes and do not provide the specific quality assurance requested.

Answer

Communication Management Approach

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Project Plan

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Business Case

Question 19

During a project's initiation, the Project Board is concerned about the technical feasibility of a new product. They want to ensure that the supplier's proposed solution is achievable and that technical risks are managed. Which role is responsible for providing assurance that the supplier's solution is technically viable?

Accepted Answer

Senior Supplier. The Senior Supplier is the Project Board role accountable for the technical integrity of the project. They ensure that the supplier's proposed solution is feasible and that technical risks are understood and managed, providing confidence to the Project Board that the project can deliver the required products.

Answer

Project Manager

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Project Assurance

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Team Manager

Question 20

A project manager is reviewing the 'Continued Business Justification' principle with the project board. The board asks how this principle is applied throughout the project. Which statement best describes how the principle is applied?

Accepted Answer

The business case is reviewed at each management stage boundary and updated if necessary to reflect changes in benefits, costs, or risks.. The Continued Business Justification principle requires the business case to be reviewed and updated at each management stage boundary and whenever significant changes occur. This ensures the project remains aligned with benefits, costs, and risks, and that it is stopped if it is no longer viable.

Answer

Justification is only required at the start and end of the project, as intermediate reviews would disrupt delivery.

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The project board ensures that the project remains aligned with corporate strategy and that benefits are still achievable.

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The business case is developed at the start and then frozen; it is not revisited unless a major change occurs.