PRINCE2F Overview of PRINCE2 and Principles Practice Test 3 — 15 Questions

Question 1

A programme manager is reviewing a new project that will replace a legacy HR system. The project board has not yet been appointed, but the project manager has already started creating product descriptions and a detailed business case. According to PRINCE2, which principle is being violated?

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

Accepted Answer

Defined roles and responsibilities. PRINCE2 requires that roles and responsibilities are defined and agreed before work commences. The project board is a fundamental part of the project organisation, and its absence means accountability is missing. Starting product creation without a board violates the 'Defined roles and responsibilities' principle, which ensures clear ownership and decision-making authority.

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Manage by exception

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Learn from experience

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Focus on products

Question 2

A project is being managed using PRINCE2. The project manager wants to ensure that the project is divided into manageable chunks, with each chunk having a clear plan and a decision point for the project board. Which PRINCE2 principle is being applied?

Accepted Answer

Manage by stages. The Manage by stages principle requires that a PRINCE2 project is planned, monitored, and controlled on a stage-by-stage basis. Each stage has a Stage Plan and ends with a decision point for the project board to authorize the next stage. This approach provides regular opportunities to reassess the Business Case and project viability. The scenario's description of dividing the project into manageable chunks with plans and decision points directly reflects this principle.

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Continued business justification

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Learn from experience

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Manage by exception

Question 3

A project board is reviewing the PRINCE2 principles to ensure the project is compliant. They note that the project has a business case, but it was created at the start and has not been updated since. Which PRINCE2 principle is being violated?

Accepted Answer

Continued business justification. The principle of continued business justification mandates that a PRINCE2 project must have a justifiable business case that is reviewed and updated at key points, such as stage boundaries. A static business case that is not revisited can lead to a project continuing without valid justification. The scenario describes exactly that, so the violated principle is continued business justification.

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Manage by stages

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Focus on products

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Learn from experience

Question 4

A project manager is preparing for a new project that will develop a mobile application. She decides to combine the Initiating a Project process with the Managing a Stage Boundary process for the first stage to reduce documentation. Which PRINCE2 principle is she applying?

Accepted Answer

Tailor to suit the project environment. Tailoring is the principle that allows PRINCE2 to be adapted to the specific needs of a project. By combining processes and reducing documentation, the project manager is applying tailoring to ensure the method is proportionate to the project's scale and risk. This is consistent with PRINCE2's flexibility, provided the principles are still met.

Answer

Continued business justification

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Learn from experience

Answer

Manage by stages

Question 5

A project is being set up to deliver a new customer portal. The project manager is defining the roles and responsibilities. The executive wants to know who will be accountable for the overall success or failure of the project. According to PRINCE2, which role is ultimately accountable for the project's success?

Accepted Answer

The Executive, because they are ultimately accountable for the project and represent the business interests.. PRINCE2 assigns ultimate accountability for the project to the Executive, who represents the business interest on the project board. The Executive ensures the business case is valid and that the project delivers the expected benefits, while the Project Manager handles day-to-day delivery and other board members represent user and supplier interests.

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The Project Manager, because they manage the day-to-day delivery and report progress to the board.

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The Project Board as a collective, because decisions are made jointly by the Executive, Senior User, and Senior Supplier.

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The Senior User, because they represent the interests of the users who will benefit from the project outputs.

Question 6

A programme manager has been asked to set up a new project to develop a mobile banking application. The organization has a standard project management framework, but the programme manager wants to ensure the project follows PRINCE2 principles. Which action best demonstrates the 'continued business justification' principle?

Accepted Answer

Ensuring the project board reviews the business case at each stage boundary.. The correct answer is the action that ensures the business case is reviewed at stage boundaries. Continued business justification means the project must remain desirable, viable, and achievable throughout its life. Regular reviews by the project board at key points allow for informed decisions to continue, change, or stop the project. Other actions, while useful, do not directly fulfill this principle.

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Creating a detailed project plan that covers all stages from initiation to closure.

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Documenting all project risks in a risk register and updating it weekly.

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Assigning a dedicated project manager to oversee daily activities.

Question 7

A project manager is leading a project to implement a new customer relationship management (CRM) system. The project board has defined tolerances for cost and time, and the project manager is authorized to manage the project within these tolerances. During a stage, the project manager discovers that a key supplier has increased prices, which will cause the stage to exceed its cost tolerance. According to PRINCE2 principles, what should the project manager do?

Accepted Answer

Escalate the issue to the project board immediately.. Manage by exception empowers the project manager to run the project within agreed tolerances, but when a tolerance is forecast to be exceeded, the issue must be escalated to the project board. This ensures that the board can make an informed decision about how to proceed, whether by providing additional funds, changing scope, or stopping the project.

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Adjust the project plan to absorb the cost increase within the stage.

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Ask the supplier to honor the original price to avoid exceeding tolerance.

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Update the business case to reflect the increased costs and continue.

Question 8

A project manager is reviewing the PRINCE2 principles with the project board. The board wants to ensure that the project is aligned with the principles that require focusing on products and defining roles and responsibilities. Which TWO of the following statements correctly describe these principles? (Choose two.)

Accepted Answer

The defined roles and responsibilities principle requires that the project's organization structure is defined and agreed, with clear accountabilities for all involved.. The Focus on products principle requires that products are defined with their quality criteria before work begins, ensuring the project delivers what is needed. The Defined roles and responsibilities principle requires a clear organizational structure with agreed accountabilities for all involved. These two principles together ensure that the project is both output-oriented and properly governed, reducing the risk of delivering the wrong product or having unclear decision-making.

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The focus on products principle requires that the project's products are defined only after the project has started, not during initiation.

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The focus on products principle requires that the project manager personally creates all product descriptions.

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The defined roles and responsibilities principle requires that the project has a project board, a project manager, and team managers, but does not require the involvement of stakeholders.

Question 9

A project is in the 'Managing a Stage Boundary' process. The project manager is preparing the 'End Stage Report' and the 'Next Stage Plan'. The project board wants to ensure that the project remains aligned with the business case. Which principle is most directly supported by the project board's review of these documents?

Accepted Answer

Continued business justification. The 'Continued business justification' principle mandates that a project must have a valid business case at all times. At each stage boundary, the project board reviews the End Stage Report and Next Stage Plan to decide whether the project should proceed. This review ensures that the project remains aligned with the business objectives and that the benefits still outweigh the costs and risks.

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Focus on products

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Manage by exception

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Learn from experience

Question 10

A project manager is leading a PRINCE2 project to develop a new software application. The project board has defined tolerances for time, cost, and scope. During a stage, the project manager forecasts that the stage will exceed its time tolerance by two days. According to the PRINCE2 principle 'manage by exception', what should the project manager do?

Accepted Answer

Escalate the forecast breach to the project board and provide options for resolution.. The principle 'manage by exception' establishes that project board members set tolerances for the project manager, and the project manager only escalates if a tolerance is forecast to be exceeded. In this scenario, the stage time tolerance is forecast to be breached, so the project manager must escalate to the project board with options. This enables the board to make a decision and maintain control.

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Wait until the stage actually exceeds the tolerance before notifying the project board.

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Take corrective action to bring the stage back within tolerance without informing the project board.

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Adjust the stage plan to absorb the delay by reducing quality checks, then inform the project board at the next stage boundary.

Question 11

A project board has approved the project initiation documentation for a new customer relationship management system. During the first delivery stage, the senior user requests a change to add a mobile app module. The project manager wants to apply the 'manage by exception' principle. What should the project manager do FIRST?

Accepted Answer

Assess the change against the stage and project tolerances, and if it exceeds them, escalate to the project board with an exception report.. Manage by exception means the project manager only escalates when a tolerance is forecast to be exceeded. The project manager should first assess the change against the delegated tolerances for scope, cost, and time. If the change cannot be accommodated within those limits, an exception report must be raised to the project board, which then decides how to proceed. This maintains board control while empowering the project manager to handle minor variations.

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Update the project plan to include the mobile app module and revise the business case without consulting the project board.

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Ask the senior user to withdraw the request because changes are not permitted after the project initiation documentation has been approved.

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Implement the change immediately to keep the senior user satisfied, then inform the project board at the next progress meeting.

Question 12

A project manager is leading a project to implement a new CRM system. The project board has defined roles and responsibilities, and the project manager is accountable for day-to-day management. Which PRINCE2 principle is being applied when the project manager ensures that the project has clearly defined roles and responsibilities for all stakeholders?

Accepted Answer

Defined roles and responsibilities. The correct answer is the principle of defined roles and responsibilities. PRINCE2 requires that every project has a clear organizational structure with defined roles, such as the project board, project manager, and team managers. This ensures that everyone knows what they are accountable for and who makes decisions. The other principles address different aspects of project management, such as decision-making boundaries, product focus, and adaptation.

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Manage by exception

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Tailor to suit the project environment

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Focus on products

Question 13

A project manager is leading a project to implement a new CRM system. The project board has agreed that the project will use a stage boundary approach, with each stage producing a set of products. During a stage, a team manager asks the project manager how they should decide whether a product is fit for purpose. Which PRINCE2 principle should guide this decision?

Accepted Answer

Focus on products, because it requires the project to define and agree on the products and their quality criteria.. The principle 'Focus on products' requires that the project defines its products and their quality criteria before work begins. This ensures that everyone understands what will be delivered and how it will be assessed, which directly answers how to decide whether a product is fit for purpose. Other principles support the project but do not provide the acceptance criteria.

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Tailor to suit the project environment, because the project should adapt its approach to the specific context.

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Manage by stages, because it requires the project to be planned and controlled stage by stage.

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Learn from experience, because previous projects may have lessons about product quality that can be applied.

Question 14

A newly appointed project manager is preparing to lead a PRINCE2 project. She wants to ensure that the project has a defined organization structure with clear accountability for the business, user, and supplier interests. Which PRINCE2 principle should she apply to achieve this?

Accepted Answer

Defined roles and responsibilities. The defined roles and responsibilities principle ensures that a PRINCE2 project has a clear organizational structure, with the Project Board comprising business, user, and supplier representatives. This structure provides accountability and decision-making authority, directly addressing the need for clear representation of all three interests. Without this principle, the project would lack the necessary governance to ensure that stakeholder needs are met and that the project remains aligned with business objectives.

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Manage by exception

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Tailor to suit the project environment

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Focus on products

Question 15

A project manager is reviewing the PRINCE2 principles with the project team. The team is struggling to understand how the principles are applied in practice. Which TWO of the following statements correctly describe the application of PRINCE2 principles? (Choose two.)

Accepted Answer

The 'focus on products' principle requires that product descriptions are agreed before work begins on each product.. The principles of 'learn from experience' and 'focus on products' are correctly described. Learning from experience requires ongoing capture and use of lessons, while focusing on products ensures that product descriptions are agreed before work begins. The other statements misrepresent the principles by suggesting omission of principles, micromanagement, or over-centralization of roles.

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The 'manage by stages' principle means that the project board must approve every task before it is started.

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The 'tailor to suit the project environment' principle allows the project manager to omit certain PRINCE2 themes and processes if they are not relevant.

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The 'defined roles and responsibilities' principle means that the project manager must perform all management activities.