PRINCE2F PRINCE2 Practices Practice Test 48 — 15 Questions

Question 1

A project is nearing the end of a stage, and the Project Manager is preparing for the End Stage Report. The Project Board has asked for assurance that the project remains viable and that the stage has delivered what was agreed. Which activity in the Managing a Stage Boundary process directly supports that assurance?

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

Accepted Answer

Producing the End Stage Report and updating the Business Case. Managing a Stage Boundary requires the Project Manager to prepare the End Stage Report, update the Business Case, and create the Next Stage Plan so the Project Board can decide whether to continue. Updating the Business Case is the activity that demonstrates continued viability and benefits realisation, giving the Board the assurance it requested. Board authorisation is a separate decision, not an activity of the process.

Answer

Capturing lessons in the Lessons Log

Answer

Producing the Checkpoint Report

Answer

Authorising the next stage

Question 2

During the 'Controlling a Stage' process, the Project Manager is reviewing the stage status and notices that a Work Package is forecast to exceed its cost tolerance. What is the correct PRINCE2 action for the Project Manager to take?

Accepted Answer

Take corrective action within the stage tolerance, and if the stage tolerance is also forecast to be exceeded, escalate to the project board with an Exception Report.. The Project Manager must first manage the Work Package deviation within the stage tolerance. If corrective action cannot keep the stage within its tolerance, the Project Manager must escalate to the project board with an Exception Report, as the stage is in exception. Immediate escalation without corrective action or unilateral plan changes are not appropriate.

Answer

Ask the project board for a change to the Work Package cost tolerance so that the forecast cost becomes acceptable.

Answer

Immediately escalate to the project board with an Exception Report, without taking any corrective action.

Answer

Update the Stage Plan to reflect the increased cost and continue without informing the project board, as the Work Package tolerance is not the same as the stage tolerance.

Question 3

A project is in the Closing a Project process. The project manager is preparing the End Project Report. Which TWO of the following should be included in the End Project Report? (Choose two.)

Accepted Answer

A review of how the project performed against its baselines. The End Project Report includes a review of project performance against baselines and an assessment against tolerances. These elements provide the project board with the necessary information to judge whether the project delivered its objectives and remained within agreed boundaries. Other documents like the Business Case, Risk Register, and stage plans are referenced but not duplicated in full.

Answer

A list of all project risks that were identified during the project

Answer

The detailed stage plan for the final stage

Answer

The project's Business Case with an updated forecast of costs and benefits

Question 4

A Project Manager is applying the PRINCE2 change theme and needs to ensure that changes to baselined products are handled correctly. Which TWO of the following are valid steps in the PRINCE2 issue and change control procedure? (Choose two.)

Accepted Answer

Assess the impact of the issue on the project. The PRINCE2 issue and change control procedure requires that issues be captured in the Issue Register and then assessed for their impact on the project. These steps ensure that decisions about changes are based on evidence and that the Project Board retains control over baselined products. Skipping assessment or ignoring issues would break the control loop and risk unmanaged change.

Answer

Approve the change immediately without assessment

Answer

Close the project immediately if a change is requested

Answer

Ignore issues that do not affect the current stage

Question 5

During a project, the project manager is responsible for managing the delivery of the project's products. Which PRINCE2 principle is being applied when the project manager ensures that the project has a continued business justification?

Accepted Answer

Continued business justification. The principle 'Continued business justification' directly requires that a project has an ongoing valid Business Case. The project manager ensuring continued justification is applying this principle. Other principles like Manage by stages or Learn from experience support project management but do not specifically mandate continued justification.

Answer

Manage by stages

Answer

Learn from experience

Answer

Tailor to suit the project environment

Question 6

During a stage, the Project Manager notices that a work package is likely to exceed its agreed cost tolerance. According to PRINCE2, what should the Project Manager do first?

Accepted Answer

Take corrective action within the stage tolerance. In PRINCE2, the Project Manager is responsible for managing the stage within the tolerances set by the Project Board. When a work package is forecast to exceed its cost tolerance, the Project Manager should first take corrective action to bring it back within tolerance, provided the stage tolerance is not breached. Only if the stage tolerance is threatened should an Exception Report be raised.

Answer

Inform the Project Board and wait for instructions

Answer

Update the Business Case and close the stage

Answer

Raise an Exception Report to the Project Board

Question 7

A project is in the middle of Stage 3 when a significant new risk is identified that could impact the project's ability to deliver the Business Case. The Project Manager decides to escalate this to the Project Board. Which PRINCE2 practice is being applied when the Project Manager evaluates the risk and decides on a response?

Accepted Answer

Risk practice. The Risk practice is the PRINCE2 practice that covers the identification, assessment, and control of risks. It includes evaluating risks, deciding on responses, and implementing them. In this scenario, the Project Manager is applying the Risk practice by evaluating the new risk and deciding how to respond, which may involve escalating to the Project Board if the risk exceeds tolerances.

Answer

Progress practice

Answer

Change practice

Answer

Business Case practice

Question 8

A project manager is preparing for a stage boundary. The project board has requested a summary of the stage's performance and a forecast for the next stage. Which document should the project manager produce to meet this request?

Accepted Answer

End Stage Report. The End Stage Report is the correct document because it is specifically designed to summarize stage performance and provide a forecast for the next stage, as requested by the project board at a stage boundary. Other reports like Highlight, Checkpoint, or Exception Reports serve different purposes and are not used for this specific request.

Answer

Highlight Report

Answer

Exception Report

Answer

Checkpoint Report

Question 9

A Project Manager is reviewing the Risk Register and notices that a risk has a high probability and high impact. The Project Board has a low risk tolerance. What should the Project Manager do with this risk?

Accepted Answer

Implement a risk response to reduce the threat. The Project Manager should implement an appropriate risk response to reduce the threat, given the high probability and impact and the low risk tolerance. This aligns with the risk management procedure, where risks are identified, assessed, and responded to. The Project Manager has the authority to manage risks within the project tolerances.

Answer

Transfer the risk to the customer

Answer

Escalate the risk to the Project Board as an exception

Answer

Accept the risk and monitor it

Question 10

A Project Manager is preparing the End Stage Report at the end of Stage 2. The Project Board wants to know how the project's products have performed against their quality criteria. Which PRINCE2 document should the Project Manager reference to provide this information?

Accepted Answer

Quality Register. The Quality Register is the PRINCE2 document that records quality activities and their results, including quality inspections and their outcomes. It provides the evidence needed to report on how products have performed against their quality criteria. The Project Manager should use the Quality Register to populate the End Stage Report with accurate quality performance information.

Answer

Quality Management Approach

Answer

Product Description

Answer

Lessons Log

Question 11

During the Managing Product Delivery process, a team manager is responsible for ensuring that work packages are delivered to the required quality standards. Which PRINCE2 product is used by the team manager to report progress to the project manager?

Accepted Answer

Checkpoint Report. The Checkpoint Report is the correct product because it is specifically designed for the team manager to report progress on a work package to the project manager. It is a regular report that aligns with the Managing Product Delivery process. Other reports are used for different purposes and by different roles.

Answer

End Stage Report

Answer

Highlight Report

Answer

Exception Report

Question 12

During the Managing a Stage Boundary process, the Project Manager is preparing the End Stage Report. Which of the following should be included in the End Stage Report?

Accepted Answer

A summary of the stage's performance against its tolerances. The End Stage Report is produced during Managing a Stage Boundary and provides a summary of the stage's performance against its tolerances, including progress, issues, and risks. It is used by the Project Board to assess whether the stage was successful and to decide on the next stage.

Answer

A detailed plan for the next stage

Answer

The project's risk management approach

Answer

The updated Business Case

Question 13

A Project Manager is applying the PRINCE2 Change practice to manage changes to baselined products. Which two of the following are steps in the recommended PRINCE2 change control procedure? (Choose two.)

Accepted Answer

Assess the impact of the change. The PRINCE2 change control procedure includes the steps: capture and examine issues and risks, assess the impact, and decide on the change. Approving and implementing the change are actions that occur as part of or after the 'decide on the change' step, but they are not distinct steps in the recommended procedure. Therefore, capturing and examining issues and risks, and assessing the impact, are the correct two steps.

Answer

Update the Business Case

Answer

Implement the change

Answer

Approve the change

Question 14

During a project following PRINCE2, the Project Manager is preparing the End Stage Report at the end of a stage. The Project Board has asked for an assessment of how the project is performing against its Business Case. Which document should the Project Manager update to reflect the current viability of the project?

Accepted Answer

The Business Case. The Business Case is the document that provides the justification for the project and must be updated at each stage boundary. It includes the reasons for the project, expected benefits, costs, risks, and timescales. At the end of a stage, the Project Manager updates it to show current viability, enabling the Project Board to decide whether to continue. The End Stage Report summarizes performance but does not replace the Business Case.

Answer

The Benefits Review Plan

Answer

The Project Initiation Documentation

Answer

The End Stage Report

Question 15

A PRINCE2 project is in the middle of a stage. The Project Manager has identified a risk that a key supplier may go bankrupt, which could delay the project by three months and increase costs by 20%. The Project Board has set a risk tolerance for the stage. According to PRINCE2's Risk practice, what should the Project Manager do FIRST?

Accepted Answer

Assess the risk's probability and impact, update the Risk Register, and determine whether the risk exceeds the stage risk tolerance before deciding on escalation or response.. In PRINCE2, risks are managed by assessing their probability and impact, recording them in the Risk Register, and evaluating them against tolerances. The Project Manager must first determine whether the risk exceeds the stage risk tolerance. If it does, it must be escalated to the Project Board. If not, the Project Manager can implement an appropriate response. This ensures that risks are managed at the correct level.

Answer

Ask the supplier for financial guarantees to prevent bankruptcy, as this is a proactive risk mitigation action.

Answer

Escalate the risk to the Project Board immediately because it threatens a key supplier and could impact the Business Case.

Answer

Implement a risk response to mitigate the risk, then update the Risk Register and inform the Project Board in the next Highlight Report.