PRINCE2F PRINCE2 Practices Practice Test 4 — 15 Questions

Question 1

A project has identified a threat that could delay the delivery of a key product. The Project Board decides to assign a contingency budget to respond to the threat if it materializes. Which risk response type has been used?

Choose an answer to begin — your selection is scored in the full session.

Accepted Answer

Fallback. A fallback response involves having a contingency plan and budget that will be implemented if the risk materializes. Option A is incorrect because accept involves acknowledging the risk without taking active action. Option B is incorrect because transfer involves shifting the risk to a third party. Option D is incorrect because reduce involves decreasing the probability or impact of the risk.

Answer

Accept

Answer

Transfer

Answer

Reduce

Question 2

Which of the following is an example of a threat response in PRINCE2 risk management?

Accepted Answer

Reduce. In PRINCE2 risk management, a threat response is an action taken to address a risk that could have a negative impact on project objectives. 'Reduce' is a threat response that involves implementing actions to lower the probability and/or impact of a threat to an acceptable level, such as adding extra testing to reduce the risk of software defects.

Answer

Exploit

Answer

Share

Answer

Enhance

Question 3

Which TWO of the following are correct statements about the Project Board?

Accepted Answer

The Project Board is accountable for the success of the project. The Project Board is accountable for the project's success (A) and provides unified direction to the project (D). Option B is incorrect because project assurance is a separate responsibility, and project support is provided by the Project Support role. Option C is false because the Project Board does not prepare Stage Plans; that is the Project Manager's responsibility. Option E is false because the Project Manager handles day-to-day management, not the Project Board.

Answer

The Project Board performs project assurance and project support

Answer

The Project Board prepares the Stage Plans

Answer

The Project Board is responsible for the day-to-day management of the project

Question 4

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

Accepted Answer

A Request for Change seeks to modify a baselined product; an Off-specification identifies a product that does not meet its specification. A Request for Change (RFC) is a formal proposal to modify a baselined product, while an Off-specification (Off-spec) is a notification that a product does not meet its agreed specification. In PRINCE2, RFCs are used to request changes to baselined products, whereas Off-specs identify deviations from the specification that may require corrective action.

Answer

A Request for Change is only used during delivery; an Off-specification is only used during closure

Answer

A Request for Change is proposed by the Project Board; an Off-specification is proposed by the Project Manager

Answer

There is no difference; the terms are interchangeable

Question 5

Which TWO of the following are components of the PRINCE2 quality management approach?

Accepted Answer

The quality responsibilities of the project management team. The quality management approach documents the specific quality methods and tools to be used (option E) and the quality responsibilities of the project management team (option B). The quality register (option A) is a log used to record quality activities, not part of the approach itself. Project assurance responsibilities (option C) are defined in the project management team structure, not in the quality management approach. The quality review technique (option D) is a specific method that may be included as part of the quality methods, but it is not a component of the approach; the approach describes the overall methods and tools.

Answer

The quality register

Answer

The project assurance responsibilities

Answer

The quality review technique

Question 6

Which THREE of the following are correct about the PRINCE2 progress practice?

Accepted Answer

Highlight Reports are produced by the Project Manager for the Project Board.. Highlight Reports are produced by the Project Manager for the Project Board to report progress and issues. Option D is correct: The Project Board uses management by exception, setting tolerances and only intervening when breaches occur. Option E is correct: Checkpoint Reports are produced by Team Managers for the Project Manager to report progress at the work package level. Option B is incorrect because the Project Board sets stage tolerances, not the Project Manager. Option C is incorrect because tolerances are set at both project and stage levels.

Answer

The Project Manager sets stage tolerances for the project.

Answer

Tolerances are only set at the project level, not at the stage level.

Question 7

Which TWO of the following are threat response types in PRINCE2 risk management?

Accepted Answer

Avoid. In PRINCE2 risk management, threat response types are designed to address negative risks (threats). 'Avoid' (Option D) involves taking action to eliminate the threat or protect the project from its impact, such as changing the project plan to circumvent the risk. 'Reduce' (Option E), also known as mitigation, involves reducing the probability or impact of a threat to an acceptable level. Both are standard threat response types defined in the PRINCE2 methodology.

Answer

Exploit

Answer

Enhance

Answer

Share

Question 8

Which THREE of the following are roles on the Project Board?

Accepted Answer

Senior Supplier. The Project Board in PRINCE2 is the management committee responsible for overall project direction and key decisions. The three mandatory roles on the Project Board are the Executive (who owns the business case), the Senior User (who represents the users' needs), and the Senior Supplier (who represents the supplier's interests). Option A is correct because the Senior Supplier is a core Project Board role, ensuring the supplier's resources and capabilities are aligned with project deliverables.

Answer

Project Support

Answer

Project Manager

Question 9

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

Accepted Answer

Off-specification. In PRINCE2, issues are events that have happened and need to be managed. The two types of issue are 'Off-specification' (something that should be provided but isn't) and 'Request for Change' (a proposal for a modification). These are defined in the PRINCE2 manual as the two formal types of issue that can be raised.

Answer

Risk

Answer

Highlight Report

Answer

Exception Report

Question 10

A project is forecast to exceed its stage 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 manager forecasts that stage costs will exceed the stage tolerance, they 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 tolerance levels; the Project Board must decide on corrective actions, such as approving a revised plan or closing the project. Option C correctly follows the PRINCE2 management by exception principle.

Answer

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

Answer

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

Answer

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

Question 11

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

Accepted Answer

Investment appraisal. The Business Case contains the justification for the project and includes expected benefits (D) and investment appraisal (C). Options A (Quality criteria) and B (Product Breakdown Structure) are components of other management products, not the Business Case. Option E (Risk register) is a separate management product.

Answer

Quality criteria

Answer

Product Breakdown Structure

Answer

Risk register

Question 12

Which PRINCE2 plan provides the basis for day-to-day control by the Project Manager?

Accepted Answer

Stage Plan. The Stage Plan is the correct answer because it provides the detailed, time-boxed plan for the current management stage, which the Project Manager uses for day-to-day control. PRINCE2 mandates that each stage has its own Stage Plan, derived from the Project Plan, and it includes the specific product descriptions, activities, and resource allocations needed for that stage. This plan is the basis for monitoring progress, managing issues, and making corrective decisions within the stage.

Answer

Exception Plan

Answer

Team Plan

Answer

Project Plan

Question 13

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. D is correct because PRINCE2 requires the Project Manager to escalate any forecast deviation beyond tolerance to the Project Board via an Exception Report. The Project Board then decides whether to approve a revised plan or take other corrective action. This ensures the Business Case remains viable and governance is maintained.

Answer

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

Answer

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

Answer

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

Question 14

Which PRINCE2 principle is being applied when the Project Manager escalates an issue that is outside the stage tolerance?

Accepted Answer

Manage by exception. The principle of 'Manage by exception' is applied when the Project Manager escalates an issue that exceeds the stage tolerance. This principle establishes that each management level (e.g., Project Manager, Project Board) has defined tolerances (e.g., time, cost, quality) for their delegated authority; if a forecast or actual deviation goes beyond those tolerances, the issue must be escalated to the next management level for a decision. By escalating the out-of-tolerance issue, the Project Manager is following the exception-based control mechanism that is core to PRINCE2.

Answer

Manage by stages

Answer

Tailor to suit the project environment

Answer

Continued business justification

Question 15

Which role is responsible for securing project funding and for the Business Case?

Accepted Answer

Executive. The Executive is the single individual accountable for the project's success and is responsible for securing the funding and ensuring the Business Case remains viable throughout the project. This role owns the Business Case and makes key decisions on whether to continue, redirect, or stop the project based on its justification.

Answer

Project Manager

Answer

Senior User

Answer

Senior Supplier