PRINCE2F PRINCE2 Practices Practice Test 29 — 15 Questions

Question 1

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.

Answer

Increase the project budget and continue

Answer

Continue and report in the next Highlight Report

Answer

Close the project as the Business Case is no longer viable

Question 2

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

Accepted Answer

Major risks. The Business Case in PRINCE2 justifies the project's initiation and continued viability. It must include the expected benefits (tangible and intangible) that the project aims to deliver, as well as the major risks that could affect those benefits. Therefore, options C and D are correct components.

Answer

Configuration item records

Answer

Product Description

Answer

Project Plan

Question 3

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

Accepted Answer

To provide the Project Board with information to review the current stage and plan the next. Managing a Stage Boundary provides the Project Board with sufficient information to review the current stage and plan the next stage, and to decide whether to continue the project.

Answer

To plan the next stage and update the Business Case

Answer

To control the work of a stage and manage issues

Answer

To authorize the project and approve the Project Initiation Documentation

Question 4

Which THREE of the following are roles in the Project Management Team according to PRINCE2?

Accepted Answer

Team Manager. The PRINCE2 project management team includes the Executive, Senior User, Senior Supplier, Project Manager, Team Manager, Project Assurance, and Project Support. The Project Board consists of the Executive, Senior User, and Senior Supplier. 'Project Sponsor' is not a PRINCE2 role; 'Steering Committee' is not a PRINCE2 term.

Answer

Steering Committee

Answer

Project Sponsor

Question 5

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

Accepted Answer

An RFC is about changing a product that is already agreed; an Off-spec is about a product that is missing or not meeting specifications. A Request for Change (RFC) is a proposal to modify a product that has already been approved and baselined, while an Off-specification (Off-spec) is a formal notification that a product is missing, incomplete, or does not meet its agreed specifications. In PRINCE2, the RFC seeks to change what was agreed, whereas the Off-spec identifies a deviation from what was agreed. This distinction is fundamental to the Change Control Approach and the issue management process.

Answer

An RFC only applies to the Business Case; an Off-spec applies to any product

Answer

An RFC is always accepted; an Off-spec is always rejected

Answer

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

Question 6

Which role is responsible for providing assurance that the project is being conducted properly?

Accepted Answer

Project Assurance. Project Assurance is responsible for independent oversight of the project, separate from management and delivery.

Answer

Project Manager

Answer

Project Support

Answer

Senior User

Question 7

During the Controlling a Stage process, the Project Manager identifies that the project is forecast to exceed the agreed cost tolerance for the current stage. What should the Project Manager do?

Accepted Answer

Raise an Exception Report to the Project Board and await their direction before proceeding. When a tolerance is forecast to be exceeded, the Project Manager must escalate to the Project Board via an Exception Report — this is PRINCE2's management by exception principle. The Project Manager cannot unilaterally decide to exceed tolerances; that requires Project Board authorisation. Option A is wrong because the PM cannot increase the budget without Project Board approval. Option B is wrong because closing the project is not the appropriate response to a stage tolerance breach; the Project Board may decide to close if the Business Case is no longer viable. Option C is wrong because continuing without escalation violates management by exception.

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 8

In PRINCE2, what is the definition of quality?

Accepted Answer

Fit for purpose. In PRINCE2, quality is defined as 'fit for purpose,' meaning the product must meet the stated requirements and satisfy the user's needs. This definition aligns with the PRINCE2 principle of continued business justification, ensuring the product delivers value. It is broader than mere conformance to specifications, as it includes the user's perspective and context.

Answer

Customer satisfaction

Answer

Conformance to specifications

Answer

Zero defects

Question 9

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

Accepted Answer

Project Manager. According to PRINCE2, the Project Manager is responsible for maintaining the Business Case throughout the project, including updating it with actuals and forecasts. The Executive owns the Business Case but day-to-day maintenance is delegated to the Project Manager. Option A is incorrect because the Senior User specifies benefits and user requirements, not maintains the Business Case. Option B is incorrect because while the Executive owns the Business Case, the responsibility for its maintenance lies with the Project Manager. Option C is incorrect because Project Assurance provides independent oversight, not maintenance of the Business Case.

Answer

Senior User

Answer

Executive

Answer

Project Assurance

Question 10

Which of the following is an opportunity response in PRINCE2?

Accepted Answer

Exploit. PRINCE2 defines five threat responses (Avoid, Transfer, Mitigate, Accept, Contingent) and five opportunity responses (Exploit, Share, Enhance, Accept, Contingent). 'Exploit' is a specific opportunity response that seeks to make the opportunity happen. 'Accept' is also an opportunity response, meaning the opportunity is accepted without proactive action, but with a contingency plan. Therefore, both A and B are correct opportunity responses.

Answer

Transfer

Answer

Avoid

Question 11

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, providing a foundation for the project. Option A is wrong because the Project Brief is created during Starting Up a Project. Option B is wrong because the Risk Register is created during Initiating a Project but is not the key output; the PID is the primary document. Option C is wrong because the Business Case is created in the Starting Up a Project process and refined during Initiating a Project.

Answer

Project Brief

Answer

Risk Register

Answer

Business Case

Question 12

Who typically authorizes the use of the change budget?

Accepted Answer

Project Board. The Project Board authorizes the change budget, but they may delegate authority to the Change Authority to approve changes within that budget.

Answer

Project Manager

Answer

Senior User

Answer

Change Authority

Question 13

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

Accepted Answer

A Request for Change proposes a change to a baselined product, whereas an Off-specification reports a deviation from a specification. A Request for Change (RFC) is a proposal to change a baselined product, while an Off-specification (Off-spec) reports that a product does not meet its specification or that a product is missing. Option A is incorrect because Off-specifications are not a type of risk; they are a type of issue. Option C is incorrect because both can be rejected or accepted; the decision is not predetermined. Option D is incorrect because an Off-specification may include a suggested corrective action, just as an RFC may include a solution.

Answer

An Off-specification is a type of risk, whereas a Request for Change is an issue

Answer

A Request for Change can be rejected, whereas an Off-specification must be accepted

Answer

A Request for Change includes a suggested solution, whereas an Off-specification does not

Question 14

What is the purpose of the Highlight Report?

Accepted Answer

To provide the Project Board with a summary of stage progress. The Highlight Report is produced by the Project Manager and sent to the Project Board at regular intervals to provide a summary of progress during a stage.

Answer

To detail the work packages for the next stage

Answer

To report issues to the Project Board

Answer

To report team progress to the Project Manager

Question 15

Who is responsible for the day-to-day management of project risks?

Accepted Answer

Project Manager. The Project Manager is responsible for the day-to-day management of risks, including maintaining the Risk Register and coordinating risk responses. Option A is wrong because the Executive owns the Business Case, not risk management. Option B is wrong because the Risk Actionee implements a specific risk response, not overall management. Option D is wrong because the Risk Owner is assigned for a specific risk and is accountable for its management, but the Project Manager handles day-to-day activities.

Answer

Executive

Answer

Risk Actionee

Answer

Risk Owner