PRINCE2F Overview of PRINCE2 and Principles Practice Test 4 — 15 Questions

Question 1

A project manager is explaining the seven PRINCE2 principles to a new team. She wants to emphasise that some principles ensure the project has a clear organisational structure and that decisions are made at the right level. Which TWO of the following principles directly address the definition of roles and the delegation of authority? (Choose two.)

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

Accepted Answer

Defined roles and responsibilities. The 'Defined roles and responsibilities' principle ensures a clear organisational structure with accountable roles, while 'Manage by exception' establishes tolerances and delegates authority to appropriate levels. Together, they provide the framework for decision-making at the right level and clear accountability, which the project manager is emphasising.

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Focus on products

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Learn from experience

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Tailor to suit the project environment

Question 2

A PRINCE2 project is in the initiation stage. The project manager is considering how to apply the 'tailor to suit the project environment' principle. Which action best demonstrates this principle?

Accepted Answer

Adapting the PRINCE2 processes and themes to the project's size, complexity, and risk profile.. The Tailor to suit the project environment principle requires that PRINCE2 is adapted to the project's size, complexity, risk, and other relevant factors. Adapting processes and themes ensures that the method provides the right level of control without being overly burdensome. This is essential for effective project management, as a one-size-fits-all approach is rarely appropriate. The other actions either ignore tailoring or misunderstand it.

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Adding extra stages to the project to make it more complex.

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Ignoring the PRINCE2 principles because the project is small and informal.

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Using all PRINCE2 processes and themes exactly as described in the manual, without any changes.

Question 3

A project manager is setting up a PRINCE2 project for a new marketing campaign. She is defining the roles and responsibilities for the project board and the project team. She ensures that the project board includes a senior user, a senior supplier, and an executive. Which PRINCE2 principle is she primarily applying?

Accepted Answer

Defined roles and responsibilities. The principle 'defined roles and responsibilities' mandates that a PRINCE2 project has a clear organizational structure with defined roles, including the project board (executive, senior user, senior supplier), project manager, team manager, and project assurance. By ensuring these roles are filled, the project manager is applying this principle to establish accountability and representation of stakeholder interests.

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Manage by stages

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Tailor to suit the project environment

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Focus on products

Question 4

A project manager is leading a PRINCE2 project to implement a new enterprise resource planning (ERP) system. The project board has set tolerances for time, cost, scope, quality, risk, and benefits. During a stage, the project manager forecasts that the stage will exceed the time tolerance by 10%. According to the manage by exception principle, what should the project manager do?

Accepted Answer

Escalate the forecast breach to the project board immediately and request a decision.. Manage by exception means the project manager has authority to act as long as forecasted performance remains within agreed tolerances. When a tolerance is forecast to be exceeded, the project manager must escalate to the project board. In this scenario, the time tolerance is forecast to be breached, so immediate escalation is required to allow the board to decide on corrective action.

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Wait until the end of the stage to see if the breach actually occurs before escalating.

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Adjust the stage plan to accommodate the delay and continue without escalation.

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

Question 5

A PRINCE2 project to develop a new software system is in the initiation stage. The Project Manager is reviewing the project's approach to controlling changes. The Project Board is concerned that changes to requirements are being made without assessing their impact on the business case. Which PRINCE2 principle is most directly violated if changes are made without such assessment?

Accepted Answer

Continued business justification. The continued business justification principle mandates that the project remains aligned with its Business Case. Any change must be evaluated for its impact on the Business Case to ensure the project still delivers value. Allowing changes without such assessment undermines this principle, making it the most directly violated.

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Learn from experience

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Manage by stages

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Manage by exception

Question 6

A project manager is setting up a new project and wants to ensure that the project has clearly defined roles and responsibilities. According to PRINCE2, which principle requires that the project has a defined organization structure with accountable roles?

Accepted Answer

Defined roles and responsibilities. The PRINCE2 principle 'defined roles and responsibilities' requires that the project has a clear organizational structure with defined roles, responsibilities, and relationships. It ensures that all parties know what is expected of them and that there is accountability for decisions. This principle is fundamental to establishing the project board and project manager roles, and it supports effective governance throughout the project lifecycle.

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Manage by stages

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Tailor to suit the project environment

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Learn from experience

Question 7

A project manager is managing a project in a rapidly changing regulatory environment. The project board has agreed that the project should be divided into stages to allow for regular reviews. During a stage boundary, the project manager presents an exception plan because the stage is forecast to exceed its tolerances. Which PRINCE2 principle is most directly demonstrated by this action?

Accepted Answer

Manage by exception, because the project manager is escalating a forecast breach of tolerances to the project board.. Manage by exception is demonstrated when the project manager escalates a forecast breach of tolerances to the project board and presents an exception plan. This principle ensures that the board only gets involved when tolerances are threatened, allowing the project manager to manage within agreed limits and make decisions at the appropriate level.

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Continued business justification, because the exception plan will reassess whether the project remains viable.

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Manage by stages, because the project is divided into stages with decision points at stage boundaries.

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Tailor to suit the project environment, because the project is adapting to a changing regulatory environment.

Question 8

A project manager is starting a project to develop a new mobile application. The project board has asked the project manager to ensure that the project has a clear organizational structure with defined roles. The project manager is considering how to apply the 'defined roles and responsibilities' principle. Which action best demonstrates the application of this principle?

Accepted Answer

Documenting the project board, project manager, team manager, and project assurance roles in the project initiation documentation.. The 'defined roles and responsibilities' principle requires that the project has a clear organizational structure with agreed roles. Documenting the key roles in the project initiation documentation ensures that everyone understands their responsibilities and accountabilities, which is essential for effective governance and project success.

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Allowing team members to self-organize and determine their own responsibilities as the project progresses.

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Creating a RACI chart that assigns every task to the project manager.

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Assigning the senior user to also act as the project manager to reduce overhead.

Question 9

A PRINCE2 project is midway through the 'Managing a Stage Boundary' process. The Project Manager is preparing the End Stage Report for the Project Board. The Board has asked for assurance that the project remains aligned with corporate strategy and that the Business Case is still viable. Which PRINCE2 principle is MOST directly supported by the Project Board's review of the updated Business Case at this point?

Accepted Answer

Continued business justification. The Project Board's review of the updated Business Case at a stage boundary is a direct application of the continued business justification principle, which mandates that the project remains aligned with strategy and that the Business Case is viable. This principle ensures the project is stopped if justification disappears. The other principles are important but are not the primary focus of this specific activity.

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Learn from experience

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Tailor to suit the project environment

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Manage by exception

Question 10

A project manager is leading a small project to develop a mobile app. The project board has agreed that the project will use PRINCE2 but with simplified documentation and fewer stage boundaries. Which PRINCE2 principle does this decision illustrate?

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 simplifying documentation and reducing stage boundaries for a small mobile app project, the project board is applying this principle. The other principles are not directly demonstrated by this decision, as the scenario is about adjusting the method's rigor.

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Focus on products

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Manage by stages

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Define roles and responsibilities

Question 11

A project manager is leading a project to upgrade a hospital's patient records system. The project board has set tolerances for time, cost, and scope. During a stage, the project manager discovers that the actual costs are exceeding the stage tolerance. According to PRINCE2, which action should the project manager take first?

Accepted Answer

Escalate the issue to the project board by producing an exception report.. The correct action is to escalate by producing an exception report. The 'manage by exception' principle delegates authority to the project manager within defined tolerances. When a tolerance is forecast to be exceeded, the project manager must escalate to the project board, which then decides on corrective action. This ensures that the board retains control and that decisions are made at the appropriate level.

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

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

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Request additional funding from the finance department to cover the overspend.

Question 12

A project manager is leading a project to develop a new customer relationship management system. The Project Board has set tolerances for time and cost, and the project manager is expected to manage the project within these limits. Which PRINCE2 principle is being applied when the project manager only escalates issues that exceed these tolerances?

Accepted Answer

Manage by exception. Manage by exception is the PRINCE2 principle that enables the Project Board to set tolerances and delegate authority to the project manager, who then manages within those limits and escalates only when an exception is forecast. This principle ensures efficient use of management time and provides clear escalation paths. In the scenario, the project manager is operating within the time and cost tolerances set by the Project Board, and only escalates issues that exceed these tolerances, which is a direct application of manage by exception.

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Learn from experience

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Tailor to suit the project environment

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Continued business justification

Question 13

A project is underway to develop a new mobile application. The project manager has been given tolerances for time and cost. During a stage, the project manager forecasts that the stage will exceed its time tolerance. According to PRINCE2, what should the project manager do?

Accepted Answer

Inform the project board immediately. The 'Manage by exception' principle requires that if a stage is forecast to exceed its tolerances, the project manager escalates the exception to the project board. The board then decides on corrective action. This ensures that decisions are made at the appropriate level of authority and that the project manager does not exceed delegated tolerances.

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Update the business case to reflect the new forecast

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Amend the stage plan to show the overspend

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Take corrective action to bring the stage back within tolerance

Question 14

A project manager is leading a project to develop a new financial reporting system. During a review, she realizes that the project team has not been documenting lessons learned during the stages, but only at the end of the project. Which PRINCE2 principle is being violated, and what should the project manager do?

Accepted Answer

Learn from experience; she should ensure that lessons are captured and acted upon throughout the project, not just at the end.. The principle of learn from experience requires that lessons are captured and used throughout the project lifecycle, not just at closure. By documenting lessons only at the end, the team misses opportunities to improve the project in progress. The project manager should establish regular lesson capture and review, ensuring that lessons are acted upon to benefit the current project and future ones.

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Tailor to suit the project environment; she should adapt the lessons learned process to fit the project's timeline.

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Manage by stages; she should divide the project into more stages to allow for lesson capture.

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Focus on products; she should ensure that product descriptions include quality criteria for lessons learned.

Question 15

A project manager is reviewing the project's approach to applying the PRINCE2 principle 'focus on products'. Which TWO of the following actions directly support this principle? (Choose two.)

Accepted Answer

Defining the project's products, including their quality criteria, before planning the activities to create them.. Focus on products means that the project is defined and driven by its products. This requires defining products and their quality criteria before planning activities, and using product descriptions to capture purpose, composition, and quality criteria. These actions ensure that planning and execution are directed towards delivering the required outputs, rather than just completing activities. Measuring progress by product delivery, not activity completion, is also essential.

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Measuring progress primarily by the number of activities completed rather than by the delivery of products.

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Allowing products to be defined after the activities that create them have been completed.

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Creating a detailed activity schedule before identifying any project products.