PRINCE2F PRINCE2 Practices Practice Test 40 — 15 Questions

Question 1

Which role is accountable for the business justification of a PRINCE2 project?

Accepted Answer

The Executive. The Executive is the single role on the PRINCE2 project board who is ultimately accountable for the business justification. This includes ensuring the project remains viable, approving the business case, and securing funding. The PRINCE2 manual explicitly assigns ownership of the business case to the Executive, not to the Project Manager or the board collectively.

Answer

The Project Manager

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The Senior User

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The Project Board

Question 2

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

Accepted Answer

Approve Stage Plans. The Project Board is responsible for approving Stage Plans (Option C) because it provides the necessary authority for the Project Manager to proceed with the next stage of work. This approval ensures that the project remains aligned with the business case and tolerances set by the board. The board also has a key responsibility to provide assurance (Option D) that the project is being managed correctly and that risks are being controlled, which is a core governance function in PRINCE2.

Answer

Design the Risk Management Approach

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Produce Highlight Reports

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Manage Work Packages

Question 3

In PRINCE2, which two responsibilities are separated to ensure independent assurance?

Accepted Answer

Project Management and Project Assurance. In PRINCE2, the separation of Project Management and Project Assurance ensures that those who are managing the project (Project Manager) are not the same individuals providing independent assurance. This prevents conflicts of interest and ensures objective oversight of the project's adherence to plans, standards, and controls.

Answer

Senior User and Senior Supplier

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Project Support and Project Assurance

Answer

Project Board and Project Manager

Question 4

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, while the Executive (Senior Responsible Owner) owns it and is accountable for its justification.

Answer

Senior User

Answer

Project Support

Answer

Executive (Senior Responsible Owner)

Question 5

What is the purpose of the Quality Review technique?

Accepted Answer

To assess whether a product meets its quality criteria. The Quality Review technique in PRINCE2 is a structured assessment process that evaluates whether a product meets its predefined quality criteria. It involves a review meeting where the product's producer presents the product to a team of reviewers, who then identify any defects or deviations from the quality criteria. This ensures that the product is fit for purpose before it is formally approved.

Answer

To identify risks in the project

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To approve changes to the project scope

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To plan quality activities

Question 6

Which of the following best describes the difference between a risk owner and a risk actionee?

Accepted Answer

Risk owner manages the risk; risk actionee implements planned responses. The risk owner is responsible for managing the risk; the risk actionee is responsible for carrying out specific actions.

Answer

There is no difference; they are the same

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Risk owner identifies the risk; risk actionee logs it

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Risk owner is always the Project Manager; risk actionee is a team member

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. In PRINCE2, when a Project Manager forecasts that stage tolerances will be exceeded, they must escalate the issue to the Project Board via an Exception Report. This triggers an Exception Plan process, allowing the Board to decide whether to approve revised tolerances or take corrective action. The Project Manager cannot proceed without direction, as tolerances are a delegated authority limit.

Answer

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

Answer

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

Question 8

What is the purpose of the Risk Register?

Accepted Answer

To capture and track information about identified risks throughout the project. The Risk Register is a PRINCE2 management product that captures and tracks all identified risks throughout the project lifecycle. It records risk descriptions, probability, impact, proximity, and responses, ensuring risks are actively managed and monitored. This aligns with the PRINCE2 principle of continued business justification by maintaining visibility of threats and opportunities.

Answer

To approve risk budgets

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To report progress to stakeholders

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To record all decisions made by the Project Board

Question 9

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

Accepted Answer

An RFC seeks to change an approved baseline, while an Off-specification reports a failure to meet a specified requirement. In PRINCE2, a Request for Change (RFC) is a formal proposal to modify an approved baseline (e.g., a product description, plan, or scope), while an Off-specification is a notification that a product has failed to meet a specified requirement or acceptance criterion. The RFC seeks to change the baseline itself, whereas the Off-specification reports a deviation from the agreed specification that must be resolved, often via a concession or corrective action.

Answer

An RFC is a request for a new feature, while an Off-specification is a report of a defect

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An RFC is used for threats, while an Off-specification is used for opportunities

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An RFC is raised by the Project Board, while an Off-specification is raised by the Project Manager

Question 10

When is the Business Case formally reviewed and confirmed?

Accepted Answer

At the end of each management stage. The Business Case is developed in pre-project, approved at initiation, and reviewed at each stage boundary.

Answer

During the Closing a Project process

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Only at the start of the project

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Only when an exception occurs

Question 11

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

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Lessons Learned

Question 12

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

Accepted Answer

Expected benefits. The Business Case includes expected benefits, costs, timescales, major risks, etc. Options, investment appraisal, and dis-benefits are also components.

Answer

Project Plan

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Product Breakdown Structure

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Quality Register

Question 13

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

Accepted Answer

Business Case. The Business Case is a core component of the Project Initiation Documentation (PID) because it provides the justification for the project, including costs, benefits, and risks. In PRINCE2, the PID is the key document that defines the project's scope, objectives, and approach, and the Business Case is essential for ongoing viability checks.

Answer

Highlight Report

Answer

Checkpoint Report

Question 14

Which TWO statements about PRINCE2's management by exception are correct?

Accepted Answer

If a tolerance is forecast to be exceeded, the Project Manager must escalate. Management by exception means delegating authority within tolerances and escalating when tolerances are forecast to be exceeded.

Answer

Tolerances apply only to time and cost

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The Project Manager sets the project's tolerances

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The Project Board is involved in all day-to-day decisions

Question 15

Which THREE of the following are threat response types in PRINCE2?

Accepted Answer

Avoid. In PRINCE2, threat response types are specific strategies for dealing with negative risks (threats). 'Avoid' (Option A) is a valid threat response that involves changing the plan to eliminate the threat or protect the project from its impact. 'Transfer' (Option C) shifts the financial impact of a threat to a third party, such as through insurance or a fixed-price contract. 'Accept' (Option E) acknowledges the threat and takes no proactive action, often with a contingency plan in place. These three are explicitly listed in the PRINCE2 risk management practice.

Answer

Enhance

Answer

Exploit