PRINCE2F Overview of PRINCE2 and the project environment Practice Test 6 — 15 Questions

Question 1

An organisation is deciding whether a piece of work should be run as a project or absorbed into business-as-usual operations. The work involves creating a new customer portal, has a defined start and end, will deliver a set of products, and is cross-functional, but a manager argues it should be treated as routine work because the team already supports web systems. Which PRINCE2 characteristic best supports treating this as a project rather than business as usual?

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

Accepted Answer

It introduces change and is cross-functional, bringing together people with different skills for a defined period. PRINCE2 defines a project as a temporary organisation created to deliver one or more business products according to an agreed Business Case, and projects typically introduce change and are cross-functional. The portal introduces change, draws on multiple skill sets and has a defined end, all of which distinguish it from the routine, ongoing support the manager describes.

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It is a temporary organisation created to deliver one or more business products according to an agreed Business Case

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It has no defined end date and continues until the service is decommissioned

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It is ongoing and repetitive, delivering the same service output on a continuous basis

Question 2

A Programme Director is reviewing a proposal for a new project to build a customer portal. The proposal explains that the work will be organized as a temporary organization with a defined start and end, delivering a unique product. Which PRINCE2 principle is being described by this temporary, unique nature of the work?

Accepted Answer

Defined roles and responsibilities. Defined roles and responsibilities is the PRINCE2 principle that requires a project to have a temporary management organization with clear roles and responsibilities. The scenario describes a temporary organization with a defined start and end, delivering a unique product, which is precisely what that principle addresses. The other principles deal with justification, experience, products, stages, tolerances and tailoring, not with the temporary, unique nature of the project organization.

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Tailor to suit the project environment

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Learn from experience

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Continued business justification

Question 3

A project is underway to upgrade a company's data center infrastructure. The Project Board has set tolerances for time and cost. The project manager is monitoring progress and reports that the project is forecast to exceed the time tolerance. According to PRINCE2, what should the project manager do?

Accepted Answer

Take corrective action to bring the project back within tolerance. The project manager should first take corrective action to bring the project back within the time tolerance. If that is not possible, they must escalate to the Project Board. This approach aligns with the manage by exception principle, which gives the project manager authority to manage within tolerances but requires escalation when tolerances are forecast to be exceeded.

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Do nothing and wait for the next stage boundary

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Update the Business Case to reflect the new timeline

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Immediately escalate to the Project Board

Question 4

A Project Manager is working on a complex construction project using PRINCE2. The Project Board has asked the Project Manager to explain how the seven PRINCE2 principles are applied. Which TWO of the following statements accurately describe how principles are applied in PRINCE2? (Choose two.)

Accepted Answer

The principles are mandatory and should be applied throughout the project's life.. PRINCE2 principles are mandatory and must be applied throughout the project, providing a framework for good practice. They are not tailored or omitted, though their application can be adapted in formality. The two correct statements reflect that principles are universal and serve as a consistent foundation, ensuring the project remains aligned with PRINCE2's philosophy regardless of size or complexity.

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The principles are optional and can be omitted if the project is small.

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The principles are only applied during the initiation stage of the project.

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The principles can be tailored to the project's size, complexity, and risk.

Question 5

A project is developing a new software system. The project manager is preparing for the end of a stage. The project board has requested a report that summarises the stage's performance and provides exception information. Which PRINCE2 principle is being applied when the project board uses this report to make a decision on whether to continue with the project?

Accepted Answer

Manage by stages. The 'Manage by stages' principle requires that a project is planned, monitored, and controlled on a stage-by-stage basis. At each stage boundary, the project board reviews progress and performance and decides whether to continue. Using a report to inform this decision is a direct application of this principle.

Answer

Continued business justification

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Manage by exception

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Tailor to suit the project environment

Question 6

A project manager is assigned to a new project. The project's business case has been approved, and the project board has authorized the initiation stage. According to PRINCE2, what is the first step the project manager should take?

Accepted Answer

Create the Project Plan. In PRINCE2, once the business case is approved and the initiation stage is authorized, the project manager's first step is to create the Project Plan. This is because the Project Plan provides the detailed schedule, costs, and resource allocations needed to manage the initiation stage effectively, and it is a mandatory management product for the Initiating a Project process. Without the Project Plan, the project manager cannot proceed with other activities like updating the Risk Register or reviewing the Business Case in a structured way.

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Update the Risk Register

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Appoint the project board

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Review the Business Case

Question 7

You are the project manager for a large-scale IT infrastructure project in a multinational corporation. The project has completed its initiation stage and is about to start the first delivery stage. The project board has approved the project plan and the business case. However, during the initiation stage, the team encountered significant issues with resource availability due to a company-wide reorganization. Several key team members have been reassigned to other projects, and the project's budget has been reduced by 15%. The project board has asked you to proceed with the first delivery stage as planned. As a PRINCE2 practitioner, what is the most appropriate course of action?

Accepted Answer

Inform the project board that the stage cannot proceed as planned and request a review of the project plan and business case.. A is correct because PRINCE2 requires that the project remains viable against its business case and plans before proceeding to the next stage. The significant resource reassignments and 15% budget reduction fundamentally alter the project's baseline, making the approved project plan and business case invalid. The project manager must escalate this to the project board for a formal review and re-approval, as proceeding without addressing these changes violates the 'continued business justification' principle.

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Update the risk register with the resource and budget issues and proceed with the stage as planned.

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Proceed with the first delivery stage using the existing approved plans, but closely monitor resource usage.

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Adjust the project plan and resource allocations to fit the new budget and proceed without further authorization.

Question 8

A project manager is reviewing a project that has been running for three months. The business case was approved with a cost tolerance of +/- 10%. The project has already spent 95% of the budget but has only completed 40% of the scope. The project board is meeting to decide the project's fate. The project manager should advise the board to:

Accepted Answer

Recommend closure of the project because the business case is no longer viable. The project has consumed 95% of the budget while delivering only 40% of the scope, making the original business case no longer viable. PRINCE2 requires continuous business justification; if the costs outweigh the benefits, the project should be closed. The project manager must advise the board to close the project as continuing would waste further resources.

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Request a budget increase and complete the project

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Continue as planned but monitor costs more tightly

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Proceed with an exception plan without board approval

Question 9

A project in a highly regulated industry must comply with external legal requirements. The project manager is concerned that changes in regulations during the project could affect the project's viability. According to PRINCE2, which management product should be updated to reflect the impact of regulatory changes?

Accepted Answer

Business case. The Business Case is the correct management product because it documents the justification for the project, including costs, benefits, and risks. A change in external regulations directly impacts the project's viability, which is a fundamental aspect of the Business Case. PRINCE2 requires the Business Case to be updated whenever there is a change that could affect the project's continued justification.

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Issue register

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Project plan

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Risk register

Question 10

Drag and drop the steps to manage a risk in PRINCE2 into the correct order.

Accepted Answer

Identify, Assess, Plan Responses, Implement, Monitor. The PRINCE2 risk management procedure follows: identify, assess, plan responses, implement, and monitor.

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Assess, Identify, Plan Responses, Implement, Monitor

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Identify, Assess, Implement, Plan Responses, Monitor

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Identify, Plan Responses, Assess, Implement, Monitor

Question 11

Which of the following is a characteristic of a project?

Accepted Answer

Temporary, unique output, cross-functional. Projects are temporary, produce a unique output, and require cross-functional teams.

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Permanent and routine

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Produces the same output repeatedly

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Ongoing and repetitive

Question 12

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

Accepted Answer

Project Initiation Documentation. The Project Initiation Documentation (PID) is the key output of Initiating a Project.

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Project Plan

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Project Brief

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Business Case

Question 13

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

Accepted Answer

Raise an Exception Report. The PM must escalate via an Exception Report to the Project Board.

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Close the project

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Continue and report later

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Increase the project budget

Question 14

What is the difference between a Request for Change and an Off-specification?

Accepted Answer

A Request for Change proposes a modification; an Off-specification identifies a gap in requirements. A Request for Change is a proposed modification, while an Off-specification is something that was required but not delivered.

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An Off-specification is always raised by the Project Manager

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A Request for Change is always urgent; an Off-specification is not

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There is no difference