PRINCE2F Practice Exam 69 — 20 Questions

Question 1

In the Directing a Project process, which activity is performed by the Project Board when a stage is complete?

Accepted Answer

Authorize the next Stage Plan. In the Directing a Project process, the Project Board is responsible for reviewing the Stage End Report and deciding whether to authorize the next Stage Plan. This is the formal activity that occurs when a stage is complete, ensuring that the project remains viable and aligned with business justification before proceeding. The correct answer is A because the board must approve the plan for the next stage to continue.

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Authorize a Work Package

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Assign a Team Manager

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Issue a Highlight Report

Question 2

In a PRINCE2 project, the project board is concerned that the project manager is not effectively communicating with key stakeholders. The project manager recently presented a detailed risk report to the board, but several board members were unaware of the critical risks identified. Which communication management activity should the project manager have performed to ensure the board was properly informed?

Accepted Answer

Agreed on the communication management strategy with the board. The PRINCE2 communication management strategy defines how, when, and to whom information should be communicated. The project manager should have agreed on this strategy with the board upfront, ensuring that critical risks are reported in a format and frequency that meets the board's needs. Without this agreement, the board was not properly informed despite the detailed risk report being presented.

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Included the critical risks in the project plan

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Prepared a highlight report instead of a detailed risk report

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Updated the risk register and sent it to the board

Question 3

Which THREE of the following are roles in the project management team?

Accepted Answer

Executive. The Executive is a defined role in the PRINCE2 project management team, responsible for overall project direction, key decision-making, and ensuring the project delivers business value. The Executive chairs the Project Board and is ultimately accountable for the project's success.

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Risk Actionee

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Change Authority

Question 4

Match each PRINCE2 process to its purpose.

Accepted Answer

Starting Up a Project: To ensure that the pre-requisites for initiating a project are in place.. In this matching question, only two pairs are correctly matched: A and B are accurate process-purpose pairings. Options C, D, and E contain incorrect pairings. The correct purpose for Initiating a Project is to establish solid foundations, not to monitor and control work. Controlling a Stage is for monitoring and controlling work of the stage, not authorizing work packages. Managing Product Delivery is for authorizing work packages and accepting completed products, not establishing foundations.

Answer

Initiating a Project: To monitor and control the work of the stage.

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Controlling a Stage: To authorize work packages and accept completed products.

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Managing Product Delivery: To establish solid foundations for the project.

Question 5

A project manager is defining the project's approach to managing changes to baselined products. Which practice provides the framework for handling such changes?

Accepted Answer

Change practice. The Change practice in PRINCE2 provides the framework for managing changes to baselined products, including issue and change control procedures, configuration management, and the use of change authority levels. It defines how proposed changes are captured, assessed, and either approved or rejected, ensuring that baselined products are modified in a controlled manner.

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Risk practice

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Organization practice

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Progress practice

Question 6

In PRINCE2, which role is responsible for providing independent assurance that the project is being conducted properly?

Accepted Answer

Project Assurance. Project Assurance is the PRINCE2 role responsible for providing independent assurance that the project is being conducted properly. This role is separate from the Project Manager and Project Support, ensuring objective oversight of the project's adherence to PRINCE2 principles, themes, and processes. The Project Board delegates this responsibility to one or more individuals who are independent of the day-to-day management.

Answer

Project Support

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Team Manager

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Project Manager

Question 7

Which process is used by the Project Board to oversee the entire project?

Accepted Answer

Directing a Project. The 'Directing a Project' process is the correct answer because it is the PRINCE2 process that covers the Project Board's responsibilities for overseeing the entire project from start to finish. It provides the strategic direction, authorizes key decisions (such as stage boundaries and project closure), and ensures the project remains viable and aligned with business objectives. This process runs from the initial authorization to the final project closure, making it the overarching governance mechanism.

Answer

Controlling a Stage

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Managing Product Delivery

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Starting Up a Project

Question 8

A project is forecast to exceed its stage cost tolerance. What is the Project Manager's first action?

Accepted Answer

Raise an Exception Report to the Project Board. According to PRINCE2, when a project manager forecasts that stage costs will exceed the agreed stage tolerance, the first action is to raise an Exception Report to the Project Board. This is because the project manager must escalate the deviation immediately, as they do not have authority to exceed tolerance without board approval. The Exception Report informs the board of the situation and options, allowing them to decide on corrective action.

Answer

Continue the stage and report the overrun in the End Stage Report

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Request a change to the project budget from the Senior User

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Proceed with the next stage early to save time

Question 9

Which THREE of the following are responsibilities of the Senior Supplier role on the Project Board?

Accepted Answer

Ensure that the supplier's products meet quality requirements. The Senior Supplier role on the Project Board is responsible for ensuring that the supplier's products meet the agreed quality requirements. This includes providing the necessary resources and expertise to deliver the project's products, and contributing to the Business Case from a supplier perspective, particularly regarding the feasibility and cost of the supplier's work.

Answer

Manage the team on a day-to-day basis

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Approve the Stage Plans

Question 10

A project is in its initiation stage. The project manager needs to identify the major risks that could affect the project. Which practice should be applied to identify, assess, and control these risks?

Accepted Answer

Risk. The Risk practice in PRINCE2 is specifically designed to identify, assess, and control uncertainties that could affect the project's objectives. During the initiation stage, the project manager applies this practice to systematically identify major risks, evaluate their probability and impact, and plan appropriate responses, ensuring proactive management of threats and opportunities.

Answer

Business Case

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Progress

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Organizing

Question 11

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

Accepted Answer

Project Initiation Documentation. The Project Initiation Documentation (PID) is the key output of the Initiating a Project process because it consolidates all essential information needed to justify and manage the project, including the Business Case, Project Plan, and Project Brief. It serves as the single source of reference for the Project Board to authorize the project and for the Project Manager to proceed with delivery. Without the PID, there is no formal baseline for decision-making or control.

Answer

Project Brief

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Project Plan

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Business Case

Question 12

In which process does the Project Board decide whether to authorise an Exception Plan?

Accepted Answer

Directing a Project. The Project Board decides whether to authorize an Exception Plan during the Directing a Project process. This process covers the Project Board's decision-making responsibilities, including reviewing and approving exception plans when a stage is forecast to exceed its tolerances. The board either approves the exception plan, allowing the project to continue, or requests alternatives.

Answer

Starting Up a Project

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Managing a Stage Boundary

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Controlling a Stage

Question 13

A project is in the Initiating a Project process. The project manager has drafted the project plan, but the project board requests that the project be broken into management stages. Which factor should primarily determine the number and length of management stages?

Accepted Answer

The points in the project where major risks and decisions are expected. In PRINCE2, management stages are defined by key decision points and major risks, not by arbitrary time intervals. The project board uses stage boundaries to reassess business justification, approve continued investment, and control exposure to risk. Therefore, the primary factor is where significant risks or decisions are anticipated, as this aligns with the PRINCE2 principle of managing by stages.

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The project manager's preference for short stages to monitor progress

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The availability of team members for each phase

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The need to keep costs low by minimizing stage boundaries

Question 14

The Project Board authorizes an Exception Plan. In which process does the Project Manager produce the Exception Plan?

Accepted Answer

Managing a Stage Boundary. The Exception Plan is produced by the Project Manager within the Managing a Stage Boundary process. This process is triggered when the Project Board authorizes an Exception Plan to replace the current Stage Plan due to a deviation beyond tolerance. The Project Manager then creates the Exception Plan and submits it for approval.

Answer

Initiating a Project

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Directing a Project

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Controlling a Stage

Question 15

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 and await direction. PRINCE2 dictates that when a project manager forecasts a deviation beyond the stage's cost tolerance, they must raise an Exception Report to the Project Board. The Project Board then decides on corrective action, such as approving a revised plan or closing the project. This ensures governance and control over the project's financial limits.

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Increase the stage budget and continue with the current plan

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Continue with the plan and report the overrun in the next Highlight Report

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

Question 16

In the Managing Product Delivery process, who is responsible for producing Checkpoint Reports?

Accepted Answer

The Team Manager. In PRINCE2, the Checkpoint Report is produced by the Team Manager to inform the Project Manager of progress on Work Packages. The Team Manager (or the team) prepares these reports at intervals defined in the Work Package. The Project Manager receives them, not the Project Board. Therefore, option C is correct.

Answer

The Project Support

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The Project Board

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The Project Manager

Question 17

The Project Board has delegated change control decisions to a Change Authority. What is the key benefit of this delegation?

Accepted Answer

It reduces the burden on the Project Board by handling smaller changes. Delegating change control decisions to a Change Authority allows the Project Board to focus on strategic oversight and major decisions, while the Change Authority handles smaller, low-impact changes efficiently. This reduces the administrative burden on the Project Board and speeds up the change process, ensuring that minor changes do not require escalation to the board. In PRINCE2, this delegation is a key mechanism for balancing control with agility, as defined in the Change theme.

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It allows the Project Manager to approve all changes

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It eliminates the need for the Configuration Management process

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It ensures all changes are approved by the Senior Supplier

Question 18

Which TWO of the following are members of the Project Board?

Accepted Answer

Senior User. The Senior User (A) is a correct member of the Project Board because they represent the interests of those who will use the project's product, ensuring the product meets user requirements and provides value. The Senior Responsible Owner (E), also called the Executive, is the correct member who chairs the Project Board and is ultimately accountable for the project's success. Both roles are defined in PRINCE2 as essential for project governance and decision-making.

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Project Assurance

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Project Manager

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Team Manager

Question 19

What is the difference between a Request for Change and an Off-specification?

Accepted Answer

A Request for Change proposes a new or modified product, while an Off-specification records something that should have been provided but is missing. A Request for Change (RFC) is a formal proposal to add, modify, or remove a product or component, while an Off-specification (Off-spec) records a situation where a product or component should have been provided according to the agreed specifications but is missing or does not meet them. In PRINCE2, both are types of issues, but they serve distinct purposes: RFCs drive changes to baselined products, whereas Off-specs capture deviations from the defined requirements.

Answer

A Request for Change is always raised by the Project Board, while Off-specification is raised by the Project Manager

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A Request for Change requires a change budget, while Off-specification does not

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Off-specification is a type of risk, while Request for Change is a type of issue

Question 20

Which TWO of the following are components of the Business Case?

Accepted Answer

Investment appraisal. The Business Case in PRINCE2 is the key document that justifies the project's initiation and continued viability. It must include an investment appraisal to evaluate the financial viability of the project, and it must define the expected benefits that the project aims to deliver. These two components are essential for decision-making and are explicitly required by the PRINCE2 methodology.

Answer

Configuration Item Records

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Product Description

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Risk Register