PRINCE2F PRINCE2 Practices — Timed 40 Questions

Question 1

In a project using PRINCE2, the project board is reviewing the End Stage Report. They notice that the actual costs are significantly lower than planned, but the scope is complete. What should the project board do?

40 minute time limit — choose an answer to begin.

Accepted Answer

Review the End Stage Report and decide whether to authorize the next stage. The project board's primary responsibility is to review the End Stage Report and decide whether to authorize the next stage based on continued business justification, not solely on cost performance. Being under budget with scope complete does not automatically trigger an exception plan or immediate authorization; the board must assess the overall viability, risks, and lessons learned before proceeding. Option D correctly reflects the PRINCE2 principle of continued business justification and the board's decision-making authority at stage boundaries.

Answer

Request an exception plan to reallocate the surplus

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Immediately authorize the next stage as the project is under budget

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Ask the project manager to revise the project plan to increase costs

Question 2

A project manager is creating the project product description. Which practice does this document belong to?

Accepted Answer

Quality practice. The project product description belongs to the Quality practice because it defines the product's quality criteria, quality tolerances, acceptance methods, and quality responsibilities. It is used to ensure that the project's outputs meet the required quality standards and is a key input to the quality management approach.

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Business Case practice

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Plans practice

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Risk practice

Question 3

Which THREE elements are part of the PRINCE2 Quality practice?

Accepted Answer

Customer's quality expectations. The Customer's quality expectations are a key input to the PRINCE2 Quality practice, defining the criteria that the project's products must meet from the customer's perspective. These expectations are documented in the Project Product Description and used to derive acceptance criteria and quality control activities.

Answer

Project product description

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Quality register

Question 4

Based on the exhibit, what is the current risk exposure of risk R1?

Accepted Answer

Medium. Risk exposure is calculated as the product of probability and impact. In the exhibit, risk R1 has a probability of 'Medium' (0.3–0.7) and an impact of 'Medium' (0.3–0.7). Multiplying the midpoints (0.5 × 0.5 = 0.25) or using the ranges, the resulting exposure falls within the 'Medium' category on the PRINCE2 risk matrix. Therefore, the current risk exposure is correctly identified as Medium.

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Low

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Very High

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High

Question 5

A project manager is reviewing the business case for a new product development project. The project board has expressed concern that the benefits may not be realized as planned. Which management product should the project manager update to address this concern?

Accepted Answer

Benefits Management Approach. The Benefits Management Approach defines how the project's benefits will be measured, tracked, and realized throughout the project and into operations. Since the project board is concerned about benefits realization, updating this approach with revised measurement criteria, review timing, or ownership details directly addresses their concern by providing a clear plan for ensuring benefits are achieved.

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Business Case

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Project Plan

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Risk Register

Question 6

A project manager is defining the project's products in the Product Breakdown Structure. A key stakeholder disagrees with the inclusion of a certain product, claiming it is not needed. The project manager believes the product is essential to meet the user requirements. What is the best course of action according to PRINCE2 practices?

Accepted Answer

Update the Business Case to reflect the costs and benefits of including the product, and present it to the Project Board for a decision.. PRINCE2 requires that any change to the project's scope, including the addition or removal of a product, must be formally assessed against the Business Case. The project manager should update the Business Case with the costs and benefits of including the disputed product and then present it to the Project Board, which holds the authority to approve or reject changes to the project's products. This aligns with the 'continued business justification' principle and the 'change control' practice.

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Escalate directly to senior management without discussion with the stakeholder.

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Proceed with including the product as the project manager has authority over product definitions.

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Remove the product to satisfy the stakeholder, as stakeholder satisfaction is key.

Question 7

A project is in the Initiating a Project process. The project manager is creating the Risk Management Approach. Which of the following should be included in this approach?

Accepted Answer

The risk categories to be used for classifying risks.. In the Initiating a Project process, the Risk Management Approach is a strategy document that defines how risk management will be performed throughout the project. It must include the risk categories (e.g., technical, external, organizational) used to classify risks, as these provide a consistent framework for identifying and assessing risks. The risk register, risk appetite, and risk budget are not part of the approach itself; they are outputs of later processes or separate management products.

Answer

The risk register with identified risks.

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The risk appetite of the organization.

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The risk budget for the project.

Question 8

Which TWO statements about the PRINCE2 practice 'Organizing' are correct?

Accepted Answer

The project management team structure defines the roles and responsibilities within the project.. The PRINCE2 'Organizing' practice defines the project management team structure, which establishes clear roles and responsibilities for all team members. This structure ensures accountability and effective communication throughout the project lifecycle.

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The project manager reports to the project board through the senior user.

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The project board consists of four roles: executive, senior user, senior supplier, and project manager.

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Project assurance is a role within project support.

Question 9

During a quality review, it is discovered that the acceptance criterion 'The system shall be compatible with Windows 10 and macOS' has been classified as 'Should' (i.e., a desirable but not essential criterion). Which action should be taken?

Accepted Answer

Seek confirmation from the customer that the classification is acceptable.. In PRINCE2, the classification of acceptance criteria (e.g., 'Must', 'Should', 'Could') is a customer decision. When a criterion classified as 'Should' is discovered during a quality review, the correct action is to seek confirmation from the customer that the classification is acceptable, as only the customer can decide whether a desirable criterion can be downgraded or reclassified. This ensures the project remains aligned with customer expectations and avoids unauthorized changes to the Project Product Description.

Answer

Remove the criterion from the Project Product Description.

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Ignore the issue because the criterion is already documented.

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Reclassify it as 'Must' to ensure delivery.

Question 10

A project to upgrade the IT infrastructure of a medium-sized company is in the Initiating a Project process. The project manager has created the Business Case, which shows a net present value (NPV) of £150,000 and an internal rate of return (IRR) of 12%. The project board's executive is concerned that the project may not deliver the expected benefits because the market demand for the new infrastructure is uncertain. The project manager is now preparing the Project Plan. What should the project manager do next?

Accepted Answer

Refine the Business Case by including a risk assessment of the market uncertainty and then create the Project Plan based on the refined Business Case.. D is correct because the Business Case must be refined to reflect the market uncertainty before the Project Plan is created. In PRINCE2, the Business Case is a living document that drives decision-making, and the Project Plan is based on it. Including a risk assessment of the market uncertainty ensures the project board can make an informed decision about whether the project remains viable, given the NPV and IRR are based on assumptions that may no longer hold.

Answer

Ask the project board to approve the Project Plan subject to a review of the Business Case later.

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Proceed with the Project Plan as the Business Case already shows a positive NPV.

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Update the Business Case to reflect the uncertainty and seek approval from the project board before proceeding with the Project Plan.

Question 11

Drag and drop the steps to create a PRINCE2 project plan into the correct order.

Accepted Answer

Step 1: Design the plan, Step 2: Define and analyze products, Step 3: Identify activities and dependencies, Step 4: Estimate, Step 5: Schedule and document the plan. Planning steps: design the plan, define products, identify activities, estimate, and schedule/document.

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Step 1: Define and analyze products, Step 2: Design the plan, Step 3: Identify activities and dependencies, Step 4: Estimate, Step 5: Schedule and document the plan

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Step 1: Design the plan, Step 2: Identify activities and dependencies, Step 3: Define and analyze products, Step 4: Estimate, Step 5: Schedule and document the plan

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Step 1: Design the plan, Step 2: Define and analyze products, Step 3: Estimate, Step 4: Identify activities and dependencies, Step 5: Schedule and document the plan

Question 12

Match each level of management in PRINCE2 to its description.

Accepted Answer

Corporate or Programme Management: The level responsible for the business justification and ensuring the project aligns with organizational strategy.. In PRINCE2, there are four management levels: Corporate or Programme Management (business justification), Directing (overall direction), Managing (day-to-day management), and Delivering (product creation). Common confusions include mixing the responsibilities of the Project Board and Project Manager, or attributing delivery tasks to higher levels.

Answer

Corporate or Programme Management: The level responsible for delivering project products.

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Managing (Project Manager): The level responsible for overall direction of the project.

Question 13

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. This includes updating it with actual progress, costs, and benefits, and ensuring it remains viable. The Executive owns the Business Case and is accountable for it, but the day-to-day maintenance is delegated to the Project Manager.

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Senior Supplier

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Senior User

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Executive

Question 14

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

Accepted Answer

Project Initiation Documentation. The Initiating a Project process is where the project's foundations are solidified, and its key output is the Project Initiation Documentation (PID). The PID compiles the Project Brief, Business Case, Project Plan, and other management strategies into a single, consolidated document that defines what, why, who, when, and how of the project, forming the basis for management control and decision-making.

Answer

Project Brief

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Project Plan

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Business Case

Question 15

A project is forecast to exceed its cost tolerance. What should the Project Manager do?

Accepted Answer

Issue an Exception Report to the Project Board. Management by exception dictates that when a tolerance is forecast to be exceeded, the Project Manager must escalate to the Project Board via an Exception Report. Continuing without escalation is not allowed.

Answer

Continue with the current plan and adjust the budget in the next stage

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Close the project immediately

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Reduce the scope to stay within budget without informing the Board

Question 16

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

Accepted Answer

To plan the next stage in detail and obtain Project Board approval. Managing a Stage Boundary (SB) is designed to provide the Project Board with information to review the current stage's performance, approve the next stage plan, and update the Business Case and project plan.

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

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To close the project and produce the End Project Report

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To initiate the project and create the PID

Question 17

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

Accepted Answer

A Request for Change is a proposal to change a baselined product; an Off-specification is a product that does not meet its specification. A Request for Change (RFC) is a formal proposal to modify a baselined product or its specification, whereas an Off-specification describes a product that has been produced but does not meet its agreed specification. Both are issue types in PRINCE2, but they capture fundamentally different situations: one is a desired change, the other is a defect or non-conformance.

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A Request for Change is for changes to the project plan; an Off-specification is for changes to products

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A Request for Change is raised by the team; an Off-specification is raised by the project manager

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A Request for Change requires an issue report; an Off-specification does not

Question 18

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 but is not) and 'Request for Change' (a proposal for a change to a product's specification). These are formally defined in the PRINCE2 manual as the only issue types.

Answer

Risk

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Highlight Report

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Lessons Report

Question 19

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

Accepted Answer

The Project Manager. The Project Manager is responsible for maintaining the Business Case throughout the project because PRINCE2 assigns the day-to-day management of the Business Case to the Project Manager, who must ensure it remains viable and aligned with project progress. The Project Manager updates the Business Case with actual costs, benefits, and risks, and presents it to the Project Board for approval at key decision points. This is defined in PRINCE2's Business Case management process, where the Project Manager owns the document's maintenance, not its approval.

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The Project Assurance

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The Executive

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The Senior Supplier

Question 20

Which process is triggered when a stage tolerance is forecast to be exceeded?

Accepted Answer

Controlling a Stage. In PRINCE2, when a stage tolerance is forecast to be exceeded, the project manager must escalate the issue to the project board. This is done through the 'Controlling a Stage' process, which includes the 'Escalate' activity. The process ensures that the project manager reports the forecast deviation and requests guidance or a decision from the project board, rather than taking corrective action independently.

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Starting Up a Project

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Directing a Project

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Managing a Stage Boundary