PRINCE2F PRINCE2 Processes — 40 Questions

Question 1

A project manager is planning a project and needs to decide at which point the project board should approve the project's initiation. According to PRINCE2, which process is responsible for obtaining approval to proceed with the initiation stage?

Accepted Answer

Directing a Project. In PRINCE2, the 'Directing a Project' process is responsible for the project board's key decision-making activities, including authorizing project initiation. The project board must approve the initiation stage before the project manager can proceed with detailed planning. This approval is obtained during the 'Directing a Project' process, not during the 'Starting up a Project' or 'Initiating a Project' processes.

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Initiating a Project

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Starting up a Project

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Managing a Stage Boundary

Question 2

During the Managing a Stage Boundary process, the project manager produces an End Stage Report for the current stage and a Stage Plan for the next stage. However, the project board rejects the Stage Plan. What is the project manager's next course of action according to PRINCE2?

Accepted Answer

Issue an Exception Report to the project board recommending project closure. When the Project Board rejects the Stage Plan during the Managing a Stage Boundary process, the project cannot proceed as intended. PRINCE2 requires the Project Manager to issue an Exception Report to the Project Board, recommending project closure if the plan is not approved, because the project has no authorized plan to continue and the board must decide whether to close or take alternative action.

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Revise the Stage Plan and resubmit it to the project board

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Escalate to the program or corporate management for a decision

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Proceed with the next stage as planned, then report to the project board at the next review

Question 3

A project is in the Initiating a Project process. The project manager is creating the Project Plan. Which management product should be used as a key input for developing the Project Plan?

Accepted Answer

Project Brief. The Project Brief is the correct key input because it contains the high-level scope, objectives, and constraints that define the project's boundaries. During the Initiating a Project process, the Project Plan is developed by elaborating on the information in the Project Brief, ensuring the plan aligns with the project's initial justification and requirements.

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Business Case

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Risk Register

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Configuration Item Records

Question 4

A project is in the Controlling a Stage process. The project manager receives a request from a team manager to change the design specification because of a technical difficulty. The change would not affect the stage plan or the business case. What should the project manager do first?

Accepted Answer

Log the issue in the Issue Register and assess the impact. According to PRINCE2, when a team manager raises a technical difficulty that could result in a change, the project manager must first log it as an issue in the Issue Register. Only after logging and assessing the impact can the project manager decide on the appropriate response. Since the change does not affect the stage plan or business case, the project manager can handle it within the stage without escalating to the project board.

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Update the Risk Register and create a risk response

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Escalate the issue to the project board for a decision

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Instruct the team manager to proceed with the change

Question 5

A project manager is closing a project using the Closing a Project process. The project has delivered all products, but the business case has not been fully realized because the expected benefits will take longer to materialize. What should the project manager do with the Benefits Management Approach?

Accepted Answer

Update the Benefits Management Approach with actual results and recommend a follow-on action plan. In PRINCE2, the Benefits Management Approach is a living document that must be updated with actual results during the Closing a Project process, even if benefits are not yet fully realized. Since the business case has not been fully realized, the project manager should record the actual benefits achieved and recommend a follow-on action plan for the remaining benefits to be managed post-project. This ensures that the expected benefits are not lost and that the organization can continue to pursue them.

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Discard the Benefits Management Approach as it is no longer needed

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Pass the Benefits Management Approach to the project board for ongoing management

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Confirm that all benefits have been realized and close the project

Question 6

Which TWO statements about the Managing Product Delivery process are correct?

Accepted Answer

It is the process where the project manager assigns work packages to team managers.. Option A is correct because the Managing Product Delivery process is where the Project Manager assigns work packages to Team Managers. This process focuses on the acceptance, execution, and delivery of work packages, ensuring that the team manager receives clear requirements and acceptance criteria. It bridges the gap between the Project Manager's planning and the team's execution.

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It is the process where the project board reviews the Business Case.

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It is the process where the project manager authorizes work packages.

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It is the process where the Stage Plan is created for the next stage.

Question 7

Which THREE activities are part of the Initiating a Project process?

Accepted Answer

Prepare the Project Plan. Option A is correct because preparing the Project Plan is a key activity in the Initiating a Project process, where the detailed plan for the project is developed based on the Project Brief and the chosen strategy. This plan covers time, cost, quality, and scope, and is a core component of the Project Initiation Documentation (PID).

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Authorize the initiation stage

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Appoint the project board and project manager

Question 8

Refer to the exhibit. A project has just completed the Starting up a Project process and received authorization to initiate. Which process should the project manager execute next?

Accepted Answer

Initiating a Project. After the Starting up a Project process, the project has received authorization to initiate. The next logical step is to plan the project in detail, which is done in the Initiating a Project process. This process produces the Project Initiation Documentation (PID) and establishes a solid foundation for the project. Therefore, option C is correct.

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Managing Product Delivery

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Controlling a Stage

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Directing a Project

Question 9

Refer to the exhibit. The project board is reviewing the End Stage Report for Stage 2 and the Stage Plan for Stage 3. The Stage Plan for Stage 3 exceeds the agreed cost tolerance. According to PRINCE2, what should the project board do?

Accepted Answer

Ask the project manager to produce an Exception Plan for Stage 3. According to PRINCE2, when a Stage Plan exceeds the agreed cost tolerance, the project board cannot approve it. Instead, the project manager must produce an Exception Plan that describes the options to bring the stage back within tolerance or to request a revised tolerance. This is a formal exception management process defined in the PRINCE2 manual.

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Approve the Stage Plan as it is, since Stage 2 was completed within tolerance

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Reject the Stage Plan and ask the project manager to terminate the project

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Lower the cost tolerance for Stage 3 to match the plan

Question 10

During the Initiating a Project process, the project manager is reviewing the Business Case. Which statement best describes the purpose of this review?

Accepted Answer

To develop a detailed justification for the project and confirm it remains viable.. Option C is correct because during the Initiating a Project process, the Business Case is reviewed to develop a detailed justification for the project and confirm it remains viable. This involves refining the outline Business Case from the Starting Up a Project process into a fully detailed document that justifies the project's continued existence based on costs, benefits, risks, and timescales. The review ensures the project is still aligned with corporate objectives and that the investment is worthwhile before proceeding to the next stage.

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To confirm the project's scope and high-level risks before the project mandate is issued.

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To authorize work packages for the first stage of the project.

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To obtain final approval from the project board before project execution begins.

Question 11

A project is underway, and the project manager notices that the team is frequently re-prioritizing work and losing focus. Which PRINCE2 process should the project manager use to re-establish control?

Accepted Answer

Controlling a Stage. The project manager should use the Controlling a Stage process because it is specifically designed to monitor the day-to-day work of the stage, manage issues and risks, and take corrective action to keep the stage on track. The symptom of frequent re-prioritization and loss of focus indicates a lack of control within the current stage, which this process directly addresses by providing mechanisms for work package assignment, progress monitoring, and escalation. It ensures the stage remains within tolerance and that the team's efforts are aligned with the stage plan.

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Managing Product Delivery

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Managing a Stage Boundary

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Directing a Project

Question 12

A project manager is preparing the End Stage Report for the second stage. The project's planned budget for the stage is $500,000, but actual costs are $520,000. The project board is concerned about cost overrun. What is the most appropriate action for the project manager?

Accepted Answer

Include the cost variance and updated forecast in the End Stage Report and submit it.. Option C is correct because the End Stage Report is the formal mechanism to report stage performance, including cost variances, to the Project Board. The project manager must include the actual cost ($520,000) against the planned budget ($500,000) and provide an updated forecast, allowing the board to make an informed decision. This aligns with PRINCE2's management by exception principle, where variances within tolerance are reported in the End Stage Report, not via an exception report.

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Request immediate additional budget from the project board before submitting the report.

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Ignore the overrun because it is within the tolerance set by the project board.

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Raise an exception report to the project board immediately.

Question 13

A project team is about to begin the first stage of a project. The project board has approved the project initiation documentation. Which process should be used to authorize the work?

Accepted Answer

Managing Product Delivery. The Managing Product Delivery process is used to control the link between the project manager and the team managers, authorizing work on the first stage's products. Since the project initiation documentation (PID) is approved, the project board has authorized the project, and the project manager uses Managing Product Delivery to assign work packages to the team for execution.

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Starting Up a Project

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Directing a Project

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Initiating a Project

Question 14

Which TWO activities are part of the Closing a Project process?

Accepted Answer

Evaluate the project and document lessons learned.. Option C is correct because evaluating the project and documenting lessons learned is a key activity in the Closing a Project process, as it captures knowledge for future projects. Option D is correct because preparing the End Project Report is also a mandatory activity in this process, providing a final assessment of project performance against the business case and plans.

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Create the project plan.

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Plan the next stage.

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Approve work packages.

Question 15

Refer to the exhibit.

PRINCE2 Configuration Item Record
Item ID: CI-103
Product: User Authentication Module
Version: 2.1
Status: Under Development
Baseline: 2.0
Last Review: 2024-01-15
Owner: Project Support Office

Issue: The team reports that the latest version (2.1) has a critical defect. The status is 'Under Development' but the baseline is still 2.0. What process should the project manager follow?

Accepted Answer

Log the defect as an issue and manage it through Controlling a Stage.. Option A is correct because the defect in version 2.1 of the User Authentication Module is a new issue that must be formally logged and managed within the current stage. PRINCE2 requires that all issues (including defects) be captured in the Issue Register and handled through the Controlling a Stage process, which includes assessing the impact, deciding on corrective action, and updating the Configuration Item Record (CIR) accordingly. The baseline remains 2.0 because version 2.1 is still under development and has not been baselined, so the defect does not trigger a baseline change request.

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Include the defect in the next Managing a Stage Boundary report.

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Update the configuration item record and close the project.

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Raise an exception report to the project board for a baseline change.

Question 16

You are the project manager for a software development project following PRINCE2. The project is in its second stage, which has a budget tolerance of 10% above the planned cost of $200,000. The project board is composed of the executive, senior user, and senior supplier. The team has been working on a critical feature, but a key supplier has announced a 15% price increase for their services, effective immediately. This increase will push the stage costs to $230,000, exceeding the tolerance. The project manager must decide the best course of action. Which option should the project manager take?

Accepted Answer

Raise an exception report to the project board, detailing the cost increase and seeking guidance.. Option D is correct because PRINCE2 mandates that when a stage's forecast exceeds its tolerance (here, 10% above $200,000 = $220,000, and the new cost is $230,000), the project manager must raise an Exception Report to the project board. The board, comprising the executive, senior user, and senior supplier, then decides on corrective actions—such as approving additional budget, renegotiating scope, or stopping the project. The project manager cannot unilaterally approve the overrun or bypass the board.

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Stop the project and close it prematurely.

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Negotiate with the supplier for a discount and continue the stage work without escalation.

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Approve the additional cost from the project's contingency budget without informing the board.

Question 17

You are the project manager for a construction project. The project is in the Initiating a Project process. The project board has approved the project brief, and you are now developing the project initiation documentation (PID). During this process, you identify that the project's business case is no longer viable due to a change in market conditions. What is the most appropriate action?

Accepted Answer

Advise the project board that the business case is no longer viable and recommend project closure.. In PRINCE2, the project board is responsible for making decisions about project viability, including closure. During the Initiating a Project process, if the business case becomes unviable, the project manager must escalate this to the project board, who then decides whether to close the project. Option C correctly reflects this by advising the board and recommending closure, aligning with the 'continued business justification' principle.

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Continue developing the PID as planned and submit it to the project board.

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Make the decision to close the project yourself and inform the team.

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Request additional time to find alternative justifications for the project.

Question 18

A project manager is initiating a project using PRINCE2. The project board has approved the project mandate, but the project manager is unsure about the next step. Which process should be executed first?

Accepted Answer

Starting up a Project. The correct answer is A, Starting up a Project. According to PRINCE2, the first process after the project mandate is approved is 'Starting up a Project'. This process ensures that the project is viable and that the necessary people are appointed (e.g., the Executive, Senior User, and Senior Supplier) before any detailed planning or initiation begins. The project manager must execute this process to create the Project Brief and prepare for the 'Initiating a Project' process.

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Managing a Stage Boundary

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Directing a Project

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Initiating a Project

Question 19

Which TWO statements about the Initiating a Project process are correct?

Accepted Answer

The Project Initiation Documentation is produced during this process.. Option B is correct because the Initiating a Project process is where the Project Initiation Documentation (PID) is produced. The PID consolidates key planning information, including the detailed business case, project plan, and risk register, to form a solid foundation for the project. This process ensures that all stakeholders have a shared understanding of the project's scope, objectives, and approach before proceeding.

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The project manager is appointed during this process.

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The Project Initiation Documentation is created in Starting up a Project.

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The project brief is created during this process.

Question 20

Refer to the exhibit. The project manager is reviewing a completed work package in Stage 2. The actual cost exceeds the planned cost by $5,000. What should the project manager do?

Accepted Answer

Escalate the issue to the project board as an exception.. Option C is correct because the work package is complete but the actual cost exceeds the planned cost by $5,000, which exceeds the tolerance set for the work package. In PRINCE2, any deviation beyond the agreed tolerance must be escalated to the Project Board as an exception, as the Project Manager cannot approve such variances themselves.

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Update the project plan to reflect the actual cost.

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Record the actual cost and continue with the project.

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Accept the variance as the work package is complete.