PRINCE2F Business Case and Organizing — 40 Questions

Question 1

During a project, the cost-benefit ratio becomes unfavorable. What is the first action the project manager should take?

Accepted Answer

Request a formal review of the Business Case by the project board. In PRINCE2, the Business Case is the key document for justifying the project's continued viability. When the cost-benefit ratio becomes unfavorable, the project manager must escalate this issue to the project board, which holds the authority to approve changes to the Business Case or decide on project continuation. Option D is correct because the project manager's first action is to request a formal review by the project board, as per the 'continued business justification' principle and the 'manage by stages' theme.

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Update the Business Case without informing the board

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Reduce project scope to cut costs

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Stop the project immediately

Question 2

A project manager is assigned to a project where the executive is often unavailable. Which role can act as a substitute for the executive when making business case decisions?

Accepted Answer

No role can substitute; the project should be escalated to the project board. In PRINCE2, the Executive is the single point of accountability for the business case and must approve any changes to it. If the Executive is unavailable, no other role can substitute for this authority; the project manager must escalate the decision to the full Project Board. This ensures that business justification decisions are never made without the accountable party or the collective board.

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Senior User

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Senior Supplier

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Project Assurance

Question 3

A project is in its closing stage. The business case shows that all planned benefits have been realized. What should the project manager do?

Accepted Answer

Update the Business Case with actual benefits and produce the End Project Report. In PRINCE2, the closing stage requires the project manager to formally confirm that all planned benefits have been realized. Updating the Business Case with actual benefits and producing the End Project Report is the correct action because it provides a formal record of benefit realization and lessons learned, which is essential for organizational learning and project closure. This aligns with the PRINCE2 principle of 'continued business justification' and the 'Closing a Project' process.

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Start a new project to realize more benefits

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Delete the project files

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Close the project immediately

Question 4

Which role is responsible for ensuring that the project delivers the expected benefits?

Accepted Answer

Senior User. The Senior User is responsible for specifying the benefits and ensuring that the project delivers them, as defined in the PRINCE2 Business Case theme. This role represents the interests of those who will use the project's outputs and is accountable for realizing the expected benefits after the project is completed.

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Project Manager

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Senior Supplier

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Executive

Question 5

Which TWO documents are created during the Starting up a Project process?

Accepted Answer

Business Case. In PRINCE2, the Starting up a Project (SU) process produces two key management products: the Project Brief (option D) and the Business Case (option C). The Project Brief is the baseline document that defines the project's objectives, scope, and justification, and it is assembled during SU from the Project Mandate, the Lessons Log, and the Project Product Description. The Business Case is also created in SU as an outline version, providing the business justification that will be refined in the Initiating a Project process. The Project Plan (option A) is created in Initiating a Project, not SU, and the End Project Report (option B) is produced in the Closing a Project process. The Risk Register (option E) is created in Initiating a Project, not during Starting up a Project.

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Project Plan

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End Project Report

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Risk Register

Question 6

You are the project manager for a construction project with a project board consisting of an executive (who is also the senior user), a senior supplier, and a separate senior user. The executive is heavily involved in day-to-day operations and often gives direct instructions to team members, bypassing you. This has caused confusion and delays. The business case is still viable, but the project is behind schedule. What should you do?

Accepted Answer

Speak to the executive privately about the issue and the need to follow the project management structure. The project manager must manage the project according to the PRINCE2 management structure, which defines clear roles and responsibilities. The executive is overstepping their role by giving direct instructions to team members, bypassing the project manager, which violates the 'management by exception' principle. Speaking privately to the executive is the appropriate first step to resolve the issue informally and reinforce the need to follow the established project management structure, as per the 'Organizing' theme.

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Escalate to the senior supplier immediately

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Ignore the executive's instructions and continue with the project plan

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Issue a change request to update the project plan to include the executive's instructions

Question 7

Match each PRINCE2 theme to its purpose.

Accepted Answer

Business Case: To establish mechanisms to judge whether the project is and remains desirable, viable, and achievable.. The correct matches are: Business Case ensures viability, Organization defines structure, Quality ensures product criteria, Risk manages uncertainty. Common confusions include swapping the purposes of Business Case and Organization, or Quality and Risk.

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Business Case: To define the project's structure of accountability and responsibilities.

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Quality: To identify, assess, and control uncertainty.

Question 8

During a stage boundary, the project manager is updating the Business Case. The project board has requested a review of the benefits tolerance. Which document should the project manager update to reflect the revised tolerance for benefits?

Accepted Answer

Business Case. In PRINCE2, benefits tolerance is documented in the Business Case. It defines the permissible variation in benefits realization. When the project board requests a review, the project manager must update the Business Case to reflect the revised tolerance, ensuring that the project's justification remains valid and aligned with business objectives.

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Benefits Management Approach

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Stage Plan

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Project Plan

Question 9

A project is being initiated. The Project Manager is assembling the project's organization and must ensure the correct roles are represented. Which TWO statements about PRINCE2 project roles are correct? (Choose two.)

Accepted Answer

The Executive is accountable for the project and is the single point of accountability for the Business Case.. The Executive owns the Business Case and is the single point of accountability, while the Senior User specifies user needs and confirms that benefits are realized. These two roles are central to PRINCE2's organization theme and ensure business and user perspectives are represented on the Project Board.

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The Project Manager is a member of the Project Board and votes on stage authorization decisions.

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Project Assurance is accountable to the Senior Supplier and reports to the supplier organization.

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The Team Manager is accountable for the overall Business Case and for authorizing the project's closure.

Question 10

A project is midway through the delivery stage when the senior user raises a concern that the original business justification may no longer be valid due to a significant change in market conditions. The project manager needs to determine who is responsible for making the decision on whether to continue, change, or stop the project based on the updated business case. Who should make this decision?

Accepted Answer

The Project Board. The Project Board is accountable for the business case and has the authority to make key decisions about the project's direction. When the business justification is questioned, the Project Manager escalates to the Board, which reviews the updated business case and decides whether to continue, change, or stop the project. This ensures that the decision is made at the appropriate management level and considers all stakeholder interests.

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The Executive

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The Senior User

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The Project Manager

Question 11

You are the project manager for a PRINCE2 project to implement a new customer relationship management (CRM) system. The project board has approved the project. During the 'Managing a Stage Boundary' process, you are preparing the End Stage Report. The senior user has raised a concern that the benefits defined in the Business Case are no longer achievable due to a change in market conditions. What should you do FIRST?

Accepted Answer

Escalate the concern to the project board as an exception, since the benefits may no longer be achievable. When benefits are at risk, the project manager must escalate to the project board as a potential exception. The board is responsible for ensuring the project remains justified. They can then decide on the appropriate course of action, such as updating the Business Case or terminating the project. This follows PRINCE2's management by exception principle.

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Update the Business Case to reflect the new market conditions and continue with the stage

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Ask the senior user to provide a revised benefits realization plan before taking any action

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Ignore the concern because the project has already been approved and the stage is ending

Question 12

A project is in the Initiating a Project process. The project manager is defining the project management team structure. The Executive has decided to delegate some of their responsibilities to the Project Manager. Which responsibility can the Executive delegate?

Accepted Answer

Managing the day-to-day activities of the project. In PRINCE2, the Executive can delegate day-to-day management activities to the Project Manager, but retains accountability for the project's success, benefits realization, and chairing the Project Board. Approving the PID is a collective board decision and cannot be delegated. The Project Manager is responsible for managing the project on a daily basis.

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Chairing the Project Board

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Ensuring the project delivers the expected benefits

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Approving the Project Initiation Documentation

Question 13

A project is in the Initiating a Project process. The Project Manager is defining the project management team structure. The project board has decided that the Senior Supplier will be a single person from the internal IT department, but the project involves multiple external suppliers. What is the most appropriate action for the Project Manager to take?

Accepted Answer

Ensure the Senior Supplier role is represented by one person who can speak for all supplier interests.. PRINCE2 requires that each project board role is held by one person. The Senior Supplier must be able to represent all supplier interests, even when multiple suppliers are involved. This ensures clear accountability and effective decision-making. The Project Manager should confirm that the appointed Senior Supplier can speak for all suppliers.

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Appoint multiple Senior Suppliers to represent each external supplier.

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Delegate the Senior Supplier role to the Senior User.

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Assign the Senior Supplier responsibilities to the Project Manager.

Question 14

A project is in the Starting up a Project process. The project manager is assembling the project board and needs to ensure that the correct roles are represented. Which TWO of the following are responsibilities of the Executive role in a PRINCE2 project? (Choose two.)

Accepted Answer

Ensuring that the project is aligned with the organization's strategy. The Executive is accountable for the project's business justification and must ensure alignment with organizational strategy and secure funding. These are core responsibilities. Chairing meetings, ensuring benefits delivery, and day-to-day management are not exclusive responsibilities of the Executive; they are either shared, delegated, or belong to other roles.

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Managing the project on a day-to-day basis

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Ensuring that the project delivers the expected benefits

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Chairing the project board meetings

Question 15

A project manager is setting up the project organization for a new PRINCE2 project. The project board has been appointed, and the project manager is now identifying the other roles needed. The project manager needs to ensure that the correct roles are defined and that the responsibilities are clear. Which role is responsible for ensuring that the project produces the required products to the specified quality criteria?

Accepted Answer

Project Manager. The Project Manager is accountable for delivering the project's products to the required quality criteria. This involves creating and implementing the Quality Management Strategy, defining quality responsibilities, and ensuring that quality control activities are carried out. While other roles contribute, the Project Manager has the overall responsibility for meeting the project's objectives, including quality, within the agreed constraints.

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Team Manager

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Project Assurance

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Senior Supplier

Question 16

You are the project manager of an infrastructure project. The Executive has asked you to propose the composition of the project board. Which TWO responsibilities must be covered by the project board roles? (Choose two.)

Accepted Answer

Ensuring that the project delivers the expected benefits. The project board must cover three interests: business, user, and supplier. The Executive covers the business interest by owning the Business Case and securing funding. The Senior User covers the user interest by ensuring the project delivers the expected benefits. These two responsibilities are essential and must be represented. Other activities such as day-to-day management, quality assurance, and supplier representation are important but do not define the two mandatory board responsibilities asked for here.

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Assuring that the project's approach to quality is appropriate

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Representing the interests of the supplier delivering the products

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Managing the day-to-day delivery of the project's products

Question 17

You are the project manager of a PRINCE2 project to develop a new mobile application. The Project Board has asked you to review the project's organization structure. Which TWO statements accurately describe the responsibilities of the Senior User role in PRINCE2? (Choose two.)

Accepted Answer

The Senior User is accountable for ensuring that the project delivers the benefits defined in the Business Case.. The Senior User is accountable for ensuring that the project delivers the benefits defined in the Business Case and for providing user resources. In this mobile app project, the Senior User must define the benefits, such as increased user engagement, and ensure that user testers are available to validate the solution.

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The Senior User represents the interests of the suppliers who are building the project's products.

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The Senior User has the authority to approve changes to the project's technical architecture.

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The Senior User is accountable for the overall viability of the project's Business Case.

Question 18

A project is in the Initiating a Project process. The Project Manager is preparing the Project Initiation Documentation (PID) and needs to ensure that the Business Case and organization structures are appropriately addressed. Which TWO statements correctly describe the project board's composition or responsibilities in relation to the Business Case? (Choose two.)

Accepted Answer

The Executive is accountable for the Business Case and must ensure that the project remains aligned with corporate strategy.. The Executive is accountable for the Business Case and ensures alignment with corporate strategy. The Project Board must include the Executive, Senior User and Senior Supplier roles to balance business, user and supplier interests. These two statements correctly reflect PRINCE2's organization and Business Case principles, while the others misassign responsibilities or incorrectly allow delegation of Business Case approval.

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The Project Board can delegate approval of the Business Case to the Project Manager to speed up decision-making.

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The Senior Supplier represents the business interests and is accountable for the benefits realised from the project.

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The Senior User is responsible for ensuring that the project delivers the outcomes and benefits defined in the Business Case.

Question 19

During the Initiating a Project process, the Project Manager is assembling the Project Initiation Documentation. The Executive has asked which single element establishes how the project's products will be judged as acceptable and how the project will demonstrate that the Business Case remains valid throughout delivery. Which component should the Project Manager point to?

Accepted Answer

The Business Case, because it records the justification, the expected benefits and the acceptance criteria that must be met for the project to remain worthwhile.. The Business Case is the single element that records the justification for the project, the expected benefits, and the acceptance criteria by which the project's products and outcomes will be judged. It is reviewed at each stage boundary and on significant change, so it is the component that demonstrates continued validity throughout delivery.

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The Quality Management Strategy, because it describes the quality techniques, standards and responsibilities used to verify products.

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The Benefits Review Plan, because it specifies when and how the project's benefits will be measured and reviewed after closure.

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The Project Plan, because it defines the timeline, cost and resource baseline against which the Business Case is monitored.

Question 20

You are the project manager for a PRINCE2 project to develop a new pharmaceutical product. The project is in the 'Managing a Stage Boundary' process. You have prepared the End Stage Report and are updating the Business Case. The project board has asked you to ensure that the Business Case remains valid. Which of the following is a key input to updating the Business Case at this point?

Accepted Answer

The End Stage Report and the current Business Case. The Business Case is updated at each stage boundary using the End Stage Report and the current Business Case. The End Stage Report provides actual performance and issues, while the current Business Case provides the baseline for comparison. This ensures the project remains aligned with business objectives and benefits.

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The Next Stage Plan

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The End Stage Report

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The Business Case itself from the previous stage