PRINCE2F PRINCE2 Practices Practice Test 2 — 15 Questions

Question 1

Which TWO of the following are opportunity responses?

Accepted Answer

Reject. In PRINCE2, opportunity responses are proactive strategies to realize positive risks (opportunities). 'Enhance' is a correct response because it involves proactively increasing the probability and/or impact of an opportunity. 'Reject' is also a correct response, meaning the organization decides not to take the opportunity, often due to strategic or resource constraints.

Answer

Avoid

Answer

Accept

Answer

Transfer

Question 2

Which TWO of the following are typical responsibilities of the Project Board?

Accepted Answer

Making key decisions and authorizing stage boundaries. The Project Board is responsible for making key decisions, including authorizing stage boundaries, which involves reviewing progress and approving the next stage plan. This aligns with PRINCE2's principle of management by stages, where the board controls the project at key decision points.

Answer

Day-to-day management of the project

Answer

Managing configuration items

Answer

Creating the Project Plan

Question 3

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

Accepted Answer

An RFC proposes a change to an agreed baseline; an Off-spec reports a failure to meet the specification. In PRINCE2, a Request for Change (RFC) is a formal proposal to modify any baselined product, while an Off-specification (Off-spec) is a notification that a product has failed to meet its agreed specification or that a product cannot be delivered as specified. The core distinction lies in the trigger: an RFC addresses a desired change to an already-approved baseline, whereas an Off-spec reports a deviation or failure against the original specification.

Answer

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

Answer

An RFC is about scope changes; an Off-spec is about quality defects only

Answer

An RFC is raised before the product is baselined; an Off-spec is raised after baselining

Question 4

A risk has been identified that, if it occurs, could improve the project's likelihood of achieving its objectives. What type of risk is this, and which response is appropriate?

Accepted Answer

Opportunity; Exploit. The question describes a risk that could improve the project's likelihood of achieving its objectives, which is the definition of an opportunity (not a threat). The PRINCE2 guidance recommends the 'Exploit' response for opportunities when the project wants to ensure the opportunity is realized, making Option D correct.

Answer

Threat; Transfer

Answer

Opportunity; Reject

Answer

Threat; Avoid

Question 5

Which document is used by the Project Manager to report progress to the Project Board on a regular basis during a stage?

Accepted Answer

Highlight Report. The Highlight Report is the correct document because it is specifically designed for the Project Manager to provide the Project Board with a regular summary of progress, achievements, and next steps during a management stage. It is typically produced at a frequency defined in the Communication Management Approach, ensuring the board remains informed without needing to attend detailed Checkpoint Reports.

Answer

End Stage Report

Answer

Checkpoint Report

Answer

Exception Report

Question 6

In product-based planning, what is the purpose of a Product Flow Diagram?

Accepted Answer

To show the sequence of product development and dependencies. In PRINCE2's product-based planning, the Product Flow Diagram (PFD) shows the sequence in which products are developed and the dependencies between them. This helps in planning the order of activities and identifying where products are needed as inputs for others. Option B is correct because the PFD's primary purpose is to map the logical flow and dependencies, not to define quality criteria, show hierarchy, or estimate effort.

Answer

To define the quality criteria for each product

Answer

To show the hierarchical breakdown of products

Answer

To estimate the effort required to create each product

Question 7

Which role is responsible for approving the Project Plan?

Accepted Answer

Project Board. The Project Plan is a key document that defines how the project will be delivered, including its scope, schedule, and budget. According to PRINCE2, the Project Board is collectively responsible for approving the Project Plan, as it represents the business, user, and supplier interests. This ensures that all stakeholders agree on the plan before execution begins.

Answer

Executive

Answer

Senior User

Answer

Project Manager

Question 8

Which risk response is specifically for opportunities?

Accepted Answer

Enhance. Enhance, because PRINCE2 defines Enhance as the specific risk response for increasing the probability and/or impact of an opportunity. Unlike threats, opportunities require proactive responses to maximize potential benefits, and Enhance is the direct counterpart to Reduce for threats.

Answer

Transfer

Answer

Avoid

Answer

Reduce

Question 9

In the risk management procedure, which step includes evaluating the probability and impact of risks?

Accepted Answer

Assess. The Assess step in the PRINCE2 risk management procedure is where the probability and impact of each identified risk are evaluated. This step uses techniques such as probability-impact grids to quantify the risk exposure, enabling prioritization based on the risk's overall severity.

Answer

Implement

Answer

Identify

Answer

Plan

Question 10

Which TWO of the following are components of a Business Case?

Accepted Answer

Expected benefits. The Business Case in PRINCE2 captures the justification for the project, including the expected benefits (C) and the investment appraisal (E). Expected benefits define the measurable improvements the project will deliver, while the investment appraisal provides the financial analysis (e.g., net present value, payback period) to confirm the project is worthwhile. Both are mandatory components of the Business Case as per PRINCE2 guidance.

Answer

Product Description

Answer

Risk Register

Answer

Configuration Item Records

Question 11

Which TWO of the following are components of the Business Case?

Accepted Answer

Expected benefits. The Business Case in PRINCE2 is the key document that justifies the project's initiation and continued viability. It must include the expected benefits (the measurable improvements from the project's outputs) and an investment appraisal (a financial evaluation like Net Present Value or Payback Period to assess the project's value). These two components are mandatory for a complete Business Case.

Answer

Product descriptions

Answer

Configuration item records

Answer

Risk register

Question 12

Which THREE of the following are true about the role of the Project Board?

Accepted Answer

It is accountable for the project's success. The Project Board is accountable for the project's success (A), provides unified direction to the project (B), and consists of the Executive, Senior User, and Senior Supplier (E). Option C is incorrect because the Project Manager is a member of the project management team, not the Project Board. Option D is incorrect because day-to-day management is the responsibility of the Project Manager, not the Project Board.

Answer

It includes the Project Manager as a member

Answer

It is responsible for day-to-day management of the project

Question 13

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

Accepted Answer

Project Assurance. Project Assurance is the correct answer because, in PRINCE2, the Project Assurance role is specifically tasked with providing an independent view of how the project is progressing, ensuring that it remains viable, and that it adheres to the PRINCE2 principles and the project's management stages. This role is independent of the Project Manager and reports directly to the Project Board, providing objective oversight that the project is being managed correctly.

Answer

Project Support

Answer

Team Manager

Answer

Project Manager

Question 14

A risk has been identified that offers potential upside for the project. Which response should the project team consider to maximize the probability and impact of the risk?

Accepted Answer

Exploit. An exploit response is the correct choice for a risk with potential upside (an opportunity) because it seeks to maximize both the probability and the impact of the opportunity. In PRINCE2, the exploit response is specifically designed to ensure the opportunity is realized by taking proactive steps to make it happen, such as allocating additional resources or changing the project plan to capture the benefit. This aligns with the goal of turning an uncertain positive event into a definite gain.

Answer

Accept

Answer

Avoid

Answer

Transfer

Question 15

Which document is the 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 all management strategies into a single, baseline document that defines what the project must deliver, why, and how it will be controlled. The PID is formally approved by the Project Board at the end of this process, authorizing the project to proceed to the next stage.

Answer

Project Brief

Answer

Stage Plan

Answer

Business Case