PRINCE2F Business Case and Organizing Practice Test 1 — 15 Questions

Question 1

A project manager is reviewing the business case and notices that the benefits are not clearly defined. Which document should be updated to address this issue?

Accepted Answer

Business Case. The Business Case is the PRINCE2 document that justifies the project on economic grounds, and it must contain clearly defined benefits to enable ongoing viability assessment. If benefits are not clearly defined, the Business Case itself is incomplete and must be updated to ensure the project remains justified and aligned with organizational objectives.

Answer

Benefits Management Approach

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Project Plan

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Risk Register

Question 2

During a project, the senior user requests a change that significantly increases benefits but also increases costs. What should the project manager do first?

Accepted Answer

Assess the impact on the Business Case and submit a change request to the project board. In PRINCE2, any change that impacts the Business Case must be formally assessed before action is taken. The project manager's first responsibility is to evaluate the change's effect on the Business Case (costs vs. benefits) and then submit a formal change request to the Project Board, which holds authority for approving changes that alter the project's justification. Option D aligns with the 'manage by stages' and 'continued business justification' principles.

Answer

Implement the change immediately to realize benefits quickly

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Update the Business Case and proceed without approval

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Reject the change because it increases costs

Question 3

Which role is responsible for ensuring that the project's business case remains viable throughout the project?

Accepted Answer

Executive. The Executive is the single individual who owns the business case and is ultimately accountable for the project's justification. Throughout the project, the Executive must ensure that the business case remains viable, approving any changes that affect its justification. This is a core responsibility defined in the PRINCE2 Business Case theme.

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Senior User

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Senior Supplier

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Project Manager

Question 4

A project is in the initiation stage. The project board asks the project manager to produce a document that justifies the project. Which document should the project manager produce?

Accepted Answer

Business Case. The Business Case is the document that justifies the project by providing the justification, costs, benefits, and risks. During the initiation stage, the project manager develops the Business Case to confirm that the project is viable and aligns with corporate objectives. The Project Board then reviews and approves it to authorize the project to proceed.

Answer

Project Initiation Documentation

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Project Brief

Answer

Benefits Management Approach

Question 5

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.

Answer

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 6

Which document defines the project's organization structure and roles?

Accepted Answer

Project Initiation Documentation. The Project Initiation Documentation (PID) is the definitive document that defines the project's organization structure and roles, including the project management team structure, role descriptions, and responsibilities. It is created during the Initiating a Project process and provides a baseline for how the project will be managed and controlled.

Answer

Risk Register

Answer

Project Plan

Answer

Business Case

Question 7

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.

Answer

Senior User

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Senior Supplier

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Project Assurance

Question 8

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.

Answer

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 9

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 10

Which TWO documents are part of the Project Initiation Documentation?

Accepted Answer

Business Case. The Business Case is a core component of the Project Initiation Documentation (PID) because it provides the justification for the project, detailing the costs, benefits, and risks. The Project Plan is also part of the PID as it defines the project's scope, schedule, and resource requirements, forming the baseline for execution and control.

Answer

Lessons Log

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Quality Register

Answer

Risk Register

Question 11

Which THREE roles are part of the project board?

Accepted Answer

Executive. The Executive is the single accountable role for the project and owns the business case, making it a mandatory member of the project board. The project board's three primary roles are Executive, Senior User, and Senior Supplier, as defined by PRINCE2's organizational structure.

Answer

Project Manager

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Project Assurance

Question 12

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

Accepted Answer

Business Case. The Starting up a Project (SU) process in PRINCE2 is the pre-project phase where the project is evaluated before any detailed planning begins. During SU, the Project Brief is created to outline the project's scope, objectives, and approach, and the Business Case is developed at a high level to justify the project's viability. Both documents are essential for the Project Board to decide whether to proceed to the Initiation Stage.

Answer

Project Plan

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End Project Report

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Risk Register

Question 13

You are the project manager for a software development project. The business case shows a net present value (NPV) of $200,000 with a payback period of 18 months. During the initiating stage, the senior supplier informs you that the cost of a key component has increased by 20%, which will reduce the NPV to $50,000 and extend the payback period to 24 months. The project board is not scheduled to meet for another month. What should you do?

Accepted Answer

Request an extraordinary meeting of the project board to discuss the revised business case. PRINCE2 requires that any change to the business case, especially one that significantly reduces NPV and extends payback period, must be escalated to the project board for a decision. As project manager, you cannot unilaterally update the business case or change scope; you must request an extraordinary meeting to present the revised business case and seek approval to continue. This aligns with the 'continued business justification' principle and the 'manage by stages' theme.

Answer

Update the business case with the new figures and continue with the project

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Reduce project scope to bring costs back in line with the original business case

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Wait for the next scheduled board meeting to present the changes

Question 14

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.

Answer

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 15

Drag and drop the steps to manage a product delivery work package in PRINCE2 into the correct order.

Accepted Answer

Accept the Work Package, then Execute the Work Package, then Deliver the Products, then Obtain Approval for the Products, then Report Completion. Managing Product Delivery involves accepting the work package, executing the work, delivering the products, obtaining approval, and then reporting completion.

Answer

Execute the Work Package, then Accept the Work Package, then Deliver the Products, then Obtain Approval for the Products, then Report Completion

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Accept the Work Package, then Execute the Work Package, then Obtain Approval for the Products, then Deliver the Products, then Report Completion

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Accept the Work Package, then Deliver the Products, then Execute the Work Package, then Obtain Approval for the Products, then Report Completion