PRINCE2F Overview of PRINCE2 and the project environment Practice Test 10 — 15 Questions

Question 1

Who is responsible for maintaining the Business Case throughout the project?

Accepted Answer

The Project Manager. The Senior User is responsible for specifying the benefits and ensuring they are realized, but the Executive owns the Business Case. The Project Manager maintains it on a day-to-day basis.

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The Executive

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The Project Support

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The Senior User

Question 2

What is the difference between a Request for Change (RFC) and an Off-Specification (Off-spec)?

Accepted Answer

An RFC requests a change to a product; an Off-spec indicates a product does not meet its specification. A Request for Change (RFC) is a formal proposal to modify a product baseline, while an Off-Specification (Off-spec) is a notification that a product does not meet its agreed specification. In PRINCE2, an RFC seeks approval for a change, whereas an Off-spec identifies a deviation that must be resolved, often via a concession or corrective action. This distinction is fundamental to PRINCE2's change control approach, ensuring that changes and deviations are managed separately.

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An RFC is raised by the Project Manager; an Off-spec is raised by the Team Manager

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An RFC is used in the Managing Product Delivery process; an Off-spec is used in the Controlling a Stage process

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An RFC always requires approval; an Off-spec never requires approval

Question 3

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

Accepted Answer

Project Initiation Documentation. The PID is the key output that provides the basis for managing the project.

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Stage Plan

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Business Case

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Project Brief

Question 4

What is the purpose of the Managing a Stage Boundary process?

Accepted Answer

To provide the Project Board with information to assess the viability of the project. The Managing a Stage Boundary process is designed to provide the Project Board with sufficient information—such as the Stage Plan for the next stage, an updated Business Case, and a Lessons Report—to assess whether the project remains viable and should proceed. This process occurs at the end of each management stage (except the final one) and enables the board to make a informed 'go/no-go' decision based on current performance and forecasts.

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To plan the next project stage

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To authorize work packages

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To close the project

Question 5

A project is forecast to exceed its cost tolerance. What should the Project Manager do?

Accepted Answer

Raise an Exception Report to the Project Board. According to the management by exception principle, exceeding tolerance must be escalated to the Project Board via an Exception Report.

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Continue and report in the next Highlight Report

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Increase the budget to cover the overrun

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Close the project immediately

Question 6

Which role is responsible for providing independent assurance that the project is being managed correctly?

Accepted Answer

Project Assurance. Project Assurance is the role responsible for providing independent assurance that the project is being managed correctly. It is separate from the Project Manager and Project Support, ensuring objective oversight of the project's adherence to PRINCE2 principles, processes, and controls. This role is typically fulfilled by someone not directly involved in the day-to-day management, such as a corporate or programme management representative.

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Project Support

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Project Manager

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Senior User

Question 7

During the Controlling a Stage process, a Team Manager reports that a Work Package is behind schedule. What should the Project Manager do first?

Accepted Answer

Review the situation and, if within tolerance, approve corrective action. The Project Manager should assess the situation and decide whether to escalate based on tolerance. If it's within tolerance, they can approve corrective action.

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Raise an Exception Report to the Project Board

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Issue a Change Request to modify the Work Package

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Approve an extension to the Work Package

Question 8

What is the difference between tailoring and embedding PRINCE2?

Accepted Answer

Tailoring adapts PRINCE2 to the project; embedding integrates PRINCE2 into the organization. Tailoring adapts PRINCE2 to the project's environment; embedding is integrating it into the organization's culture.

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Tailoring is done by the Project Board; embedding is done by the Project Manager

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Tailoring is used for large projects; embedding is for small projects

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There is no difference; the terms are interchangeable

Question 9

What is NOT covered by PRINCE2?

Accepted Answer

Human resource management. PRINCE2 is a process-based project management methodology that focuses on business justification, defined roles, and product-based planning. It explicitly covers risk management, business case management, and quality management as core themes, but it does not prescribe detailed human resource management practices; instead, it defines roles and responsibilities within the project management team.

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Risk management

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Business Case management

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Quality management

Question 10

Which TWO of the following are outputs of the Starting up a Project process?

Accepted Answer

Project Brief. Starting up a Project produces the Project Brief and Stage Plan. The PID is produced in Initiating a Project.

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Exception Report

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Business Case

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Project Initiation Documentation

Question 11

Which THREE of the following are PRINCE2 principles?

Accepted Answer

Focus on products. The 'Focus on Products' principle is one of the seven PRINCE2 principles. It emphasizes defining and delivering products (outputs) that meet quality criteria and business expectations, rather than just managing activities. This principle ensures that all project work is directed toward tangible, agreed-upon deliverables.

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Quality management

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Risk management

Question 12

Which TWO of the following are benefits of adopting PRINCE2?

Accepted Answer

It provides a controlled start, middle, and end to projects. PRINCE2 provides a controlled start, organization, and end, and ensures focus on business justification.

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It eliminates the need for a project team

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It guarantees project success

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It ensures the project is always on time and within budget

Question 13

What is the definition of a project according to PRINCE2?

Accepted Answer

A temporary organization that is created for the purpose of delivering one or more business products according to an agreed Business Case. PRINCE2 defines a project as a temporary organization created to deliver one or more business products according to an agreed Business Case. This definition emphasizes the temporary nature of a project, its focus on outputs (products), and the necessity of a validated Business Case to justify the investment. It distinguishes projects from ongoing operations by highlighting the unique, time-limited structure and the governance provided by the Business Case.

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A process for managing day-to-day activities

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A permanent organizational structure that performs ongoing operations

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A team that works on repetitive tasks

Question 14

Which PRINCE2 principle emphasizes that a project must remain viable throughout its lifecycle?

Accepted Answer

Continued business justification. The 'Continued business justification' principle requires that the Business Case is reviewed and updated regularly to ensure the project remains desirable, viable, and achievable.

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Manage by stages

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Learn from experience

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Tailor to suit the project environment