PRINCE2F PRINCE2 Practices Practice Test 18 — 15 Questions

Question 1

Which THREE of the following are responsibilities of the Project Manager?

Accepted Answer

Preparing the Project Plan. The Project Manager is responsible for preparing the Project Plan (A), managing day-to-day project activities (D), and authorizing Work Packages (E) within tolerances. Approving the Business Case (B) is the responsibility of the Executive, and providing independent assurance (C) is the role of Project Assurance. Therefore, A, D, and E are correct.

Answer

Approving the Business Case

Answer

Providing independent assurance

Question 2

Which TWO of the following are correct statements about tolerance in PRINCE2?

Accepted Answer

The Project Board sets stage tolerances for the Project Manager. In PRINCE2, the Project Board sets stage tolerances for the Project Manager as part of the 'Manage by Stages' principle. This allows the Project Manager to manage the stage within defined tolerances without needing to escalate every minor deviation, ensuring delegated authority is clear and controlled.

Answer

Tolerances apply only to time and cost

Answer

The Project Manager can never change tolerances without Board approval

Answer

Tolerances are set only at project level

Question 3

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

Accepted Answer

The Project Manager. The Project Manager is responsible for maintaining the Business Case throughout the project because they manage day-to-day activities, track progress against the Business Case, and provide updated information to the Executive for approval. PRINCE2 assigns the Project Manager the duty of ensuring the Business Case remains viable by monitoring costs, benefits, and risks, and escalating any deviations. This aligns with the 'continued business justification' principle, where the Project Manager is the custodian of the Business Case's ongoing validity.

Answer

The Executive

Answer

The Project Support

Answer

The Senior User

Question 4

Which role is responsible for maintaining the Business Case throughout the project?

Accepted Answer

Project Manager. The Project Manager is responsible for maintaining the Business Case throughout the project because PRINCE2 requires the Business Case to be a living document that is reviewed and updated at each stage boundary. The Project Manager ensures that the project remains viable by monitoring costs, benefits, and risks against the approved Business Case, and escalates any deviations to the Project Board. This role is distinct from the Executive, who owns the Business Case and provides the initial justification, but the day-to-day maintenance and tracking fall to the Project Manager.

Answer

Senior Supplier

Answer

Project Support

Answer

Executive

Question 5

Which document describes the quality criteria for a product and is used during quality inspection?

Accepted Answer

Product Description. A Product Description contains the quality criteria and is used as the basis for quality inspection.

Answer

Project Product Description

Answer

Quality Register

Answer

Quality Management Strategy

Question 6

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

Accepted Answer

Project Initiation Documentation. The Project Initiation Documentation (PID) is the definitive output of the Initiating a Project process. It consolidates the Project Brief, Business Case, and Project Plan into a single, controlled document that defines the project's scope, objectives, and governance. PRINCE2 mandates that the PID is created and approved during this process to provide a firm foundation for the project.

Answer

Project Brief

Answer

Project Plan

Answer

Business Case

Question 7

A project has identified a risk that a supplier may go bankrupt. The Project Manager decides to purchase insurance against this possibility. Which risk response type has been applied?

Accepted Answer

Transfer. Transfer is the correct risk response because the Project Manager is shifting the financial impact of the supplier bankruptcy risk to a third party (the insurance company). In PRINCE2, Transfer involves passing the risk to another party, often through insurance or contractual terms, without eliminating the risk itself. This response type is appropriate when the risk cannot be reduced or avoided but can be financially covered by an insurer.

Answer

Accept

Answer

Share

Answer

Reduce

Question 8

A project is forecast to exceed its cost tolerance for the current stage. According to PRINCE2, what should the Project Manager do?

Accepted Answer

Raise an Exception Report to the Project Board and await their direction. According to PRINCE2, when a stage is forecast to exceed its cost tolerance, the Project Manager must escalate the issue to the Project Board by raising an Exception Report. This triggers a formal decision process where the Board can authorize a revised Stage Plan or take other corrective action. Continuing without escalation violates the management by exception principle.

Answer

Increase the project budget to absorb the additional cost and continue with the current Stage Plan

Answer

Close the project immediately as the Business Case is no longer viable

Answer

Continue with the current Stage Plan and report the cost overrun in the next Highlight Report

Question 9

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

Accepted Answer

To review the progress of the current stage and request authorization to start the next stage. The Managing a Stage Boundary process is designed to provide the Project Board with sufficient information to review the current stage's performance, approve the next stage plan, and authorize the project to continue. It ensures that the project remains viable by assessing progress against the business case and updating the project plan accordingly.

Answer

To plan the entire project before initiation

Answer

To control day-to-day work during a stage

Answer

To close the project and evaluate its performance

Question 10

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

Accepted Answer

To plan the next stage in detail and obtain Project Board approval for the next stage. The purpose of Managing a Stage Boundary is to provide the Project Board with sufficient information to review the current stage, approve the next stage plan, and confirm continued business justification.

Answer

To initiate the project and create the Project Plan

Answer

To manage the work of the current stage and report progress

Answer

To close the project and produce the End Project Report

Question 11

Which role is responsible for providing assurance that the project is being managed correctly from a business perspective?

Accepted Answer

Project Assurance. Project Assurance is independent of the Project Manager and reports to the Project Board. Business assurance is one aspect of Project Assurance.

Answer

Project Manager

Answer

Team Manager

Answer

Project Support

Question 12

In PRINCE2, what is the difference between a Request for Change (RFC) and an Off-specification?

Accepted Answer

An RFC is a proposal to change a baseline; an Off-specification is a failure to meet a baseline requirement. A Request for Change (RFC) is a formal proposal to modify a baseline (e.g., a product, plan, or scope), while an Off-specification is a documented deviation where a product or component fails to meet its agreed specification or baseline requirement. In PRINCE2, an RFC seeks approval for a change, whereas an Off-specification identifies a non-compliance that must be resolved, often through a change request or concession.

Answer

There is no difference; they are synonyms in PRINCE2

Answer

An Off-specification is always raised by the Project Manager; an RFC is raised by the Project Board

Answer

An RFC only applies to project products; an Off-specification applies to the Business Case

Question 13

A Project Manager receives a Checkpoint Report from a Team Manager. What should the Project Manager do with this information?

Accepted Answer

Use it to update the Stage Plan and prepare the Highlight Report. The Project Manager uses Checkpoint Reports to monitor progress and compile the Highlight Report for the Project Board.

Answer

File it without action as it is only for information

Answer

Forward it directly to the Project Board

Answer

Send it to Project Assurance for review

Question 14

Which report is produced by the Team Manager and sent to the Project Manager on a regular basis?

Accepted Answer

Checkpoint Report. The Checkpoint Report is produced by the Team Manager and sent to the Project Manager to report progress at the work package level.

Answer

Highlight Report

Answer

End Stage Report

Answer

Exception Report

Question 15

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

Accepted Answer

A Request for Change is a proposal to change an agreed baseline, while an Off-specification is a deviation from a baseline. A Request for Change (RFC) is a formal proposal to modify an approved baseline (e.g., a product description, plan, or scope), while an Off-specification (Off-spec) is a deviation from a baseline that has been identified—meaning something that should be there is missing or something that should not be there is present. In PRINCE2, both are types of issues recorded in the Issue Register, but they serve distinct purposes: RFCs seek authorized changes, whereas Off-specs report non-compliance with agreed baselines.

Answer

A Request for Change is documented in the Issue Register, while an Off-specification is documented in the Quality Register

Answer

A Request for Change is raised by the Project Board, while an Off-specification is raised by the Project Manager

Answer

There is no difference; they are the same thing