PRINCE2F PRINCE2 Practices Practice Test 25 — 15 Questions

Question 1

In PRINCE2, what is the difference between Project Assurance and Project Support?

Accepted Answer

Project Assurance is independent of the project; Project Support provides administrative services. Project Assurance is an independent monitoring function, separate from the project management team, that ensures the project remains compliant with PRINCE2 principles and controls. Project Support, in contrast, is a service-oriented function that provides administrative and clerical services to the project manager and team, such as maintaining logs, filing, and scheduling. Option B correctly captures this distinction: independence for assurance versus administrative services for support.

Answer

Project Assurance ensures quality; Project Support manages risks

Answer

Project Assurance is performed by the Project Board; Project Support is performed by the Project Manager

Answer

There is no difference; they are the same function

Question 2

Which THREE of the following are responsibilities of the Executive?

Accepted Answer

Ensure the Business Case remains viable. The Executive is accountable for the Business Case, appoints the Project Manager, and chairs the Project Board. Providing customer assurance is the Senior User's role; producing Highlight Reports is the Project Manager's role.

Answer

Produce Highlight Reports

Answer

Provide customer assurance

Question 3

What is the first step in the PRINCE2 recommended risk management procedure?

Accepted Answer

Identify. The PRINCE2 risk management procedure follows a logical sequence: Identify, Assess, Plan, Implement, and Communicate. The first step is 'Identify' because risks must be identified before they can be assessed or managed. Without identification, no further risk management actions are possible.

Answer

Plan

Answer

Assess

Answer

Implement

Question 4

Which TWO of the following are threat responses in PRINCE2?

Accepted Answer

Avoid. In PRINCE2, threat responses (for negative risks) are: Avoid (eliminate the threat by altering the plan), Reduce (lower the probability or impact), Fallback, Transfer, and Accept. From the options, 'Avoid' (A) and 'Reduce' (C) are threat responses. 'Exploit' (B) is an opportunity response. 'Reject' (E) is not a PRINCE2 term. 'Share' (D) is an opportunity response where the opportunity is shared with a third party to increase its chances; for threats, the equivalent is 'Transfer'. Therefore, Share is not a threat response.

Answer

Exploit

Answer

Share

Answer

Reject

Question 5

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 (B) to demonstrate the positive outcomes the project aims to achieve, and it must identify major risks (E) to provide a balanced view of the potential downsides and uncertainties. These two components are explicitly required by the PRINCE2 Business Case theme.

Answer

Configuration item records

Answer

Work package descriptions

Answer

Quality criteria

Question 6

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. This includes monitoring the Business Case against the project's progress and updating it as necessary to ensure it remains viable and aligned with the project's objectives. The Project Manager does this by regularly reviewing the Business Case and reporting any changes or deviations to the Project Board.

Answer

The Project Board

Answer

The Executive

Answer

The Senior User

Question 7

Which THREE of the following are threat responses in PRINCE2?

Accepted Answer

Transfer. Avoid, reduce, and transfer are threat responses. Exploit and enhance are opportunity responses.

Answer

Enhance

Answer

Exploit

Question 8

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

Accepted Answer

The Project Initiation Documentation. The Project Initiation Documentation (PID) is the definitive output of the Initiating a Project process, as it consolidates all key planning information—including the Business Case, Project Plan, and Stage Plan—into a single baseline that governs project execution. PRINCE2 mandates the PID as the formal document that captures the 'what, why, who, when, and how' of the project, making it the central artifact produced during initiation.

Answer

The Stage Plan

Answer

The Business Case

Answer

The Project Plan

Question 9

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

Accepted Answer

Request for Change. In PRINCE2, an issue is a relevant event that has occurred and requires management attention. The two defined types of issue are a Request for Change (RFC), which is a proposal for a change to a product's specification or baseline, and an Off-specification, which is something that should be provided by the project but is not (e.g., a missing feature or a product that does not meet its specification). Both are formally captured and managed through the Issue and Change Control practice.

Answer

Risk

Answer

Opportunity

Answer

Change budget

Question 10

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. When a tolerance is forecast to be exceeded, the Project Manager must escalate to the Project Board via an Exception Report. Option B is correct.

Answer

Close the project immediately

Answer

Report in the next Highlight Report

Answer

Increase the project budget and continue

Question 11

Who 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 they manage day-to-day activities, monitor progress against the Business Case, and escalate any deviations to the Project Board. PRINCE2 assigns this operational responsibility to the Project Manager to ensure the Business Case remains viable and aligned with project objectives.

Answer

Executive

Answer

Senior User

Answer

Project Support

Question 12

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

Accepted Answer

To enable the Project Board to review the current stage and approve the next. 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 update the project plan and business case. It ensures that the project remains viable before committing resources to the next stage, making D the correct answer.

Answer

To manage the day-to-day activities of the stage

Answer

To close the project

Answer

To plan the project at a high level

Question 13

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

Accepted Answer

Project Initiation Documentation (PID). The Project Initiation Documentation (PID) is the key output of the Initiating a Project process, providing the foundation for the project.

Answer

Project Brief

Answer

Project Plan

Answer

Business Case

Question 14

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

Accepted Answer

An Off-specification is something that should be provided but is not, while a Request for Change is a proposal to change a baseline. A Request for Change (RFC) is a proposal to modify a baseline, while an Off-specification (Off-spec) describes something that should be provided by the product but is not. Therefore, option A is correct.

Answer

A Request for Change always requires a change budget, while an Off-specification does not

Answer

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

Answer

An Off-specification is recorded in the Risk Register, while a Request for Change is in the Issue Register

Question 15

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 and await their direction before proceeding. In PRINCE2, when a project forecasts exceeding its cost tolerance, 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 the authority to exceed tolerances without explicit approval. The Project Board then decides on corrective actions, such as revising the plan or adjusting the Business Case.

Answer

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

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