PRINCE2F PRINCE2 Practices Practice Test 23 — 15 Questions

Question 1

Which TWO of the following are types of issue in PRINCE2?

Accepted Answer

Off-specification. In PRINCE2, an issue is a relevant event that has occurred and requires management attention. The two recognized types of issue are 'Off-specification' (something that should be provided by the project but is not, or is provided incorrectly) and 'Request for Change' (a proposal for a change to a product's baseline). Options D and E are correct because they directly match these defined types.

Answer

Risk

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Action Item

Answer

Lessons Learned

Question 2

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

Accepted Answer

Expected benefits. In PRINCE2, the Business Case is the document that establishes whether the project is desirable, viable, and achievable, and it must contain the expected benefits (option B) since these justify the investment and are later measured against the Benefits Review Plan. It must also include the major risks (option E), because the Business Case weighs anticipated benefits against the risks and costs to show the project remains justified. The Project Plan (option A) is a separate PRINCE2 management product describing schedules, resources, and products, not a component of the Business Case. The Product Breakdown Structure (option C) is a plan-level technique/product for decomposing deliverables, and the Quality Register (option D) is a separate management product tracking quality activities and results, so neither belongs inside the Business Case.

Answer

Project Plan

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Product Breakdown Structure

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Quality Register

Question 3

During the Controlling a Stage process, the Project Manager identifies that the stage's cost tolerance is forecast to be exceeded. According to PRINCE2, what should the Project Manager do?

Accepted Answer

Raise an Exception Report to the Project Board and await their direction before proceeding. According to PRINCE2, when a stage's cost tolerance is forecast to be exceeded, the Project Manager must escalate the issue to the Project Board by raising an Exception Report. This is because the Project Manager does not have authority to exceed the agreed tolerance; the Project Board must decide whether to approve a revised Stage Plan or take other corrective action. Continuing without escalation or making unauthorized adjustments violates the management by exception principle.

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Increase the stage budget using the change budget and continue with the current Stage Plan

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

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

Question 4

Which TWO of the following documents are produced by the Project Manager and reviewed by the Project Board?

Accepted Answer

Highlight Report. The Highlight Report (B) is produced by the Project Manager at regular intervals (typically monthly or at frequency defined in the Communication Management Strategy) to report progress to the Project Board, and the End Stage Report (D) is produced by the Project Manager at the end of each stage to summarize stage performance and provide information for the Project Board's 'Assess Stage' activity. Both are Project Manager outputs reviewed by the Project Board. The Checkpoint Report (A) is produced by Team Managers for the Project Manager, not by the Project Manager for the Project Board. The Exception Report (C) is produced by the Project Manager but is reviewed by the Project Board only when an exception situation arises, and it is not one of the two standard documents in this pairing. The End Project Report (E) is produced by the Project Manager but is reviewed by the Project Board at the end of the final stage as part of 'Project Closure', not as a routine stage-level report.

Answer

Checkpoint Report

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Exception Report

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End Project Report

Question 5

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

Accepted Answer

The Project Manager. In PRINCE2, the Project Manager is responsible for maintaining the Business Case throughout the project, including updating the Business Case at each stage boundary and whenever significant changes occur. The Business Case is owned by the Executive (who is accountable for its viability), but the day-to-day maintenance and documentation is delegated to the Project Manager. This distinction between accountability (Executive) and responsibility (Project Manager) is a classic PRINCE2 exam point.

Answer

The Senior User

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The Project Assurance

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The Senior Supplier

Question 6

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

Accepted Answer

The Project Initiation Documentation. The Initiating a Project process is where the Project Board and Project Manager agree on the detailed planning required to deliver the project. Its key output is the Project Initiation Documentation (PID), which consolidates all the baselines (scope, time, cost, risk, quality) needed to govern the project. The PID is the definitive document that authorizes the project to proceed and is used throughout the remaining stages.

Answer

The Business Case

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The Project Brief

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The Stage Plan

Question 7

Which THREE of the following are components of a Product Description?

Accepted Answer

Quality criteria. In ITIL/PRINCE2-style product-based planning, a Product Description defines a product's purpose, composition, and quality criteria, so options A, B, and D are correct. Option D (Purpose) is right because the description must state what the product is for and why it is needed, deriving its requirements. Option B (Composition) is right because it specifies the product's constituent parts, components, or sub-products and how they fit together. Option A (Quality criteria) is right because it defines the measurable attributes, tolerances, and standards the product must meet to be accepted. Option C (Acceptance criteria) is not a separate component here; acceptance criteria are typically derived from or embedded within the quality criteria rather than listed as a distinct Product Description element. Option E (Project Plan) is not a component of a Product Description; the project plan is a separate management product that references Product Descriptions.

Answer

Acceptance criteria

Answer

Project Plan

Question 8

A project manager discovers that a product expected to be completed in the current stage does not meet its product description quality criteria. The project manager has already used the stage's change budget to address a similar issue. What should the project manager do?

Accepted Answer

Request additional budget from the Project Board via an Exception Report. In PRINCE2, when a stage's change budget is exhausted and a product fails to meet its product description, the deviation exceeds the stage tolerances and must be escalated to the Project Board via an Exception Report. The Project Board then decides whether to approve additional budget, change scope, or stop the project. This preserves the principle of management by exception and keeps authority at the right level.

Answer

Update the product description to match the delivered product

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Accept the product as delivered and proceed to the next stage

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Approve the rework using the remaining risk budget

Question 9

Which TWO of the following are true about the role of Project Assurance?

Accepted Answer

It is performed by a member of the Project Board. Project Assurance is a key responsibility of the Project Board, ensuring that the project remains viable and compliant with external standards. The Project Board delegates this role to one or more individuals who are independent of the Project Manager, providing objective oversight. This independence is critical for maintaining the integrity of PRINCE2's management by exception principle.

Answer

It is the same as quality control

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It includes administrative support tasks

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It is performed by the Team Manager

Question 10

Which practice defines the project management team structure and roles?

Accepted Answer

Organising. The Organising practice in PRINCE2 defines the project management team structure, including roles such as the Project Board, Project Manager, Team Manager, and Project Assurance, along with their responsibilities. It also covers the communication management approach. This is the practice explicitly concerned with roles and responsibilities.

Answer

Business Case

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Plans

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Progress

Question 11

What is the definition of quality in PRINCE2?

Accepted Answer

Fit for purpose. PRINCE2 defines quality as 'fit for purpose,' meaning the product meets its stated requirements and user expectations.

Answer

Conformance to specification

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Zero defects

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Customer satisfaction

Question 12

Which THREE of the following are components of the Project Initiation Documentation (PID)?

Accepted Answer

Project Description. The Project Initiation Documentation (PID) in PRINCE2 is assembled from three baseline components: the Project Description (option A), which defines the project's background, objectives, scope, and deliverables; the Business Case (option B), which justifies the project on the basis of costs, benefits, risks, and timescales; and the Project Plan (option C), which sets out how and when the project's products will be delivered. These three form the core of the PID, alongside the project approach and controls, and are baselined at the end of the Initiating a Project process. Option D (Checkpoint Report) is incorrect because it is a progress report produced during a stage by the Team Manager to report progress to the Project Manager, not part of the PID. Option E (Risk Register) is incorrect because, although it is a key PRINCE2 document, it is maintained separately and is not one of the three baseline components of the PID.

Answer

Checkpoint Report

Answer

Risk Register

Question 13

Which document is used to capture and track all identified risks throughout the project?

Accepted Answer

Risk Register. The Risk Register is the PRINCE2 document used to capture and track all identified risks throughout the project. It records each risk's description, probability, impact, proximity, and the planned response, and is updated continuously during the project. It is a key input to the Risk Management Approach and is reviewed at each stage boundary.

Answer

Quality Register

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Configuration Item Record

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Issue Register

Question 14

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 PRINCE2 assigns day-to-day management of the Business Case to the Project Manager, who monitors actual costs, benefits, and risks against the approved Business Case and escalates any deviations to the Project Board. This is defined in the PRINCE2 manual under the 'Business Case' practice, where the Project Manager's role includes updating the Business Case at each stage boundary and ensuring it remains viable.

Answer

The Executive (Senior Responsible Owner)

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The Senior Supplier

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The Project Support office

Question 15

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

Accepted Answer

A Request for Change proposes a change to a baseline, while an Off-specification is a product that does not meet its specification. A Request for Change (RFC) is a formal proposal to modify any approved baseline (e.g., a product description, project plan, or configuration item), whereas an Off-specification (Off-spec) is a product that has been identified as not meeting its agreed specification. The key distinction is that an RFC seeks to change the baseline itself, while an Off-spec reports a deviation from the existing baseline. In PRINCE2, both are captured as issues but serve different purposes in the change control process.

Answer

A Request for Change is always accepted, while an Off-specification is always rejected

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

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A Request for Change must be approved by the Project Board, while an Off-specification can be approved by the Project Manager