PRINCE2F Project Initiation and Stages — Timed 25 Questions

Question 1

During the Initiation Stage, the project manager identifies that the selected team lacks experience with the chosen technology. What should the project manager do?

Accepted Answer

Update the Risk Register and plan a response. The lack of experience with the chosen technology is a risk to the project, not an immediate issue. During the Initiation Stage, the project manager should formally record this risk in the Risk Register and plan an appropriate response, such as training or mentoring, to manage the uncertainty. This aligns with PRINCE2's principle of managing by stages and the requirement to identify and respond to risks proactively.

Answer

Replace the team members with experienced ones

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Escalate to the Project Board for decision

Answer

Update the Project Plan to include training

Question 2

A project is initiating and the Business Case shows a cost-benefit ratio of 1:1.2. The project board is concerned. What should the project manager do?

Accepted Answer

Provide justification and request approval. The Business Case shows a cost-benefit ratio of 1:1.2, which is positive (benefits exceed costs). The project board's concern does not automatically invalidate the Business Case. According to PRINCE2, the project manager's role during initiation is to provide the board with the justification (the Business Case) and formally request approval to proceed. Option C is correct because the project manager must present the evidence and seek a decision, not unilaterally change scope or cancel.

Answer

Reduce scope to lower costs

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Seek alternative options to improve benefits

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Recommend project cancellation

Question 3

During Initiation, the project manager discovers that a key assumption in the Business Case is invalid. What should the PM do first?

Accepted Answer

Update the Business Case. The Business Case is the key driver for the project, and if a fundamental assumption is invalid, the project manager must first update the Business Case to reflect the new reality. This ensures that the project remains viable and that the Project Board can make an informed decision about whether to continue. Updating the Business Case is the correct first step because it provides the basis for any subsequent decisions, such as escalating to the Project Board.

Answer

Ignore the assumption

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Stop the project

Answer

Inform the Project Board

Question 4

Which THREE are objectives of the Initiation Stage?

Accepted Answer

Confirm the Business Case. In PRINCE2, the Initiation Stage has three key objectives: confirming the Business Case (option B) to ensure the project remains viable and justified before committing significant resources; establishing project controls (option E) such as tolerances, reporting, and governance structures that will be used throughout the project; and producing the detailed plan for the next stage (option C), which is the first Stage Plan created during initiation. Option A (Close the project) belongs to the Closing a Project process, not Initiation. Option D (Deliver the project product) is the purpose of the project's delivery stages, not the Initiation Stage, which focuses on planning and justification rather than product delivery.

Answer

Close the project

Answer

Deliver the project product

Question 5

Which TWO are true about Stage Plans in PRINCE2?

Accepted Answer

They are approved by the Project Board. Option A is correct because in PRINCE2 a Stage Plan must be approved by the Project Board (or by the Project Manager under delegated authority from the Board) before the stage can begin, since the Board authorises each stage's work through the Stage Plan. Option C is correct because Stage Plans are produced during the 'Managing a Stage Boundary' process, i.e., at the start of each stage (except the first, whose Stage Plan is created in 'Initiating a Project'), to define the products, activities, resources, tolerances, and controls for that stage. Option B is wrong because covering the entire project timeline is the role of the Project Plan, not the Stage Plan, which addresses only one management stage. Option D is wrong because the Stage Plan supplements and is derived from the Project Plan; it never replaces it. Option E is wrong because a Stage Plan is more detailed than the Project Plan, providing the day-to-day level of detail needed to manage and control the stage.

Answer

They cover the entire project timeline

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They replace the Project Plan

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They are less detailed than the Project Plan

Question 6

Which THREE are inputs to the Initiation Stage?

Accepted Answer

Project Brief. In PRINCE2, the Initiation Stage is triggered by the Project Mandate (B), which is the trigger that formally starts the project and provides the initial idea or need, and it is used to create the Project Brief (A), which captures the initial requirements, scope, and justification that the Initiating a Project process will refine. Lessons from previous projects (C) are also a required input, as the project board and project manager must consider prior experience (captured in the Lessons Log) to inform the Project Initiation Documentation. The Project Initiation Documentation (D) is not an input but the key output produced during the Initiation Stage, and the End Project Report (E) is produced at the end of the project (Closing a Project process), so neither belongs as an input to Initiation.

Answer

Project Initiation Documentation

Answer

End Project Report

Question 7

You are the project manager for a software implementation project in a large retail company. The project is currently in the Initiation Stage. The senior user has provided the requirements, and the senior supplier has estimated that the project will cost £1.2 million and take 18 months. However, during a review of the Business Case, you discover that the expected benefits are only £1.3 million, giving a benefit-cost ratio of just 1.08:1. Additionally, the market conditions are volatile, and there is a risk that a competitor may launch a similar product before your project completes, potentially reducing benefits by 30%. The project board is eager to proceed but wants assurance that the project is viable. What should you do?

Accepted Answer

Update the Business Case with risk-adjusted benefits and present to the board. The PRINCE2 principle of continued business justification requires that the Business Case be updated to reflect current risks and uncertainties. In this scenario, the market volatility and competitor risk could reduce benefits by 30%, dropping the expected benefits to £910,000, which is below the £1.2 million cost, making the project unviable. Presenting this risk-adjusted Business Case to the board allows them to make an informed decision on whether to proceed, rather than proceeding with an overly optimistic view.

Answer

Proceed with the current Business Case as the board is eager

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Escalate to the programme manager without updating the Business Case

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Recommend cancelling the project due to poor viability

Question 8

During the Initiating a Project process, the project manager identifies that the business case relies on a key supplier delivering critical components by a fixed date. However, the supplier has a history of delays. What should the project manager do?

Accepted Answer

Record the risk in the risk register and plan a response in the risk management approach. In PRINCE2, the risk register is the central repository for recording all identified risks, and the risk management approach defines how risks will be managed throughout the project. During the Initiating a Project process, the project manager must formally document the supplier delay risk and plan appropriate responses (e.g., mitigation, contingency) within the risk management approach. This ensures the risk is actively managed rather than ignored or deferred, aligning with PRINCE2's principle of continued business justification.

Answer

Proceed with the plan as the supplier has always delivered eventually

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Adjust the business case to remove the supplier dependency

Answer

Ask the project board to approve the project with a note about the risk

Question 9

Drag and drop the steps of the PRINCE2 Controlling a Stage process into the correct order.

Accepted Answer

Authorize Work Packages, then Review Work Package Status, then Receive Completed Work Packages, then Review Stage Status, then Report Highlights, then Capture and Examine Issues and Risks, then Take Corrective Action, then Escalate Issues and Risks (if needed). Controlling a Stage includes authorizing work, reviewing progress, assessing stage status, reporting to the Project Board, and taking corrective action as needed.

Answer

Report Highlights, then Authorize Work Packages, then Review Work Package Status, then Receive Completed Work Packages, then Review Stage Status, then Capture and Examine Issues and Risks, then Take Corrective Action, then Escalate Issues and Risks (if needed)

Answer

Take Corrective Action, then Authorize Work Packages, then Review Work Package Status, then Receive Completed Work Packages, then Review Stage Status, then Report Highlights, then Capture and Examine Issues and Risks, then Escalate Issues and Risks (if needed)

Answer

Escalate Issues and Risks (if needed), then Authorize Work Packages, then Review Work Package Status, then Receive Completed Work Packages, then Review Stage Status, then Report Highlights, then Capture and Examine Issues and Risks, then Take Corrective Action

Question 10

Match each PRINCE2 process to its purpose.

Accepted Answer

Starting Up a Project: To ensure that the prerequisites for initiating a project are in place.. The correct matches are: Starting Up a Project ensures prerequisites are in place; Initiating a Project establishes the project's foundation. Common confusion: mixing up these two processes.

Answer

Starting Up a Project: To establish a solid foundation for the project, enabling the project board to decide on committing to the project.

Answer

Initiating a Project: To ensure that the prerequisites for initiating a project are in place.

Question 11

During the Initiation Stage of a PRINCE2 project, the project manager is assembling the Project Initiation Documentation (PID). The project board has requested that the PID include the quality management approach. Which TWO elements should the project manager ensure are included in the quality management approach? (Choose two.)

Accepted Answer

Quality control measures. The quality management approach in the PID defines how quality will be managed, including quality control measures and quality responsibilities. Quality control measures specify how products will be checked, while quality responsibilities assign accountability for quality activities. These are essential to ensure that the project delivers products that meet their quality criteria. Other elements like quality tolerances and the quality register are separate from the approach.

Answer

Quality tolerances

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Quality register format

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Quality assurance team

Question 12

A project is in the Initiation Stage. The project manager is compiling the Project Initiation Documentation (PID). Which of the following is a minimum requirement for the PID according to PRINCE2?

Accepted Answer

The PID must contain the detailed Business Case.. The PID is a consolidation of key documents that define the project. A minimum requirement is that it contains the detailed Business Case, which justifies the project. Other components include the project plan, the project management team structure, and controls. The Business Case is essential for the project board to authorize the project and for ongoing viability checks.

Answer

The PID must contain the Project Board's terms of reference.

Answer

The PID must contain the End Stage Report.

Answer

The PID must contain the Project Brief as issued.

Question 13

A project is in the Initiation Stage. The project manager is compiling the Project Initiation Documentation and needs to include a description of the project's products and their quality criteria. Which component of the Project Initiation Documentation should contain this information?

Accepted Answer

Project Plan. The Project Plan within the PID includes the product breakdown structure and product descriptions, which specify each product's purpose, composition, and quality criteria. The Business Case, Quality Management Strategy, and Project Controls serve different purposes and do not contain product-level details. Thus the Project Plan is the correct component.

Answer

Project Controls

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Quality Management Strategy

Answer

Business Case

Question 14

During the Initiation Stage of a project, the Project Manager identifies that the Project Plan's estimated timescales are based on an assumption that a key supplier will deliver components within four weeks. The supplier has now indicated that delivery may take eight weeks. What should the Project Manager do first?

Accepted Answer

Update the Project Plan and Business Case to reflect the revised timescales, and raise an issue to inform the Project Board.. When new information affects the Project Plan's assumptions, the Project Manager should update the Project Plan and Business Case to reflect the revised timescales, and raise an issue to keep the Project Board informed. Escalating an exception report is premature without a tolerance breach, and formal change control is not required for a draft plan that has not been baselined.

Answer

Request the Project Board to approve a change to the Project Plan through the Change Authority, because all plan changes require Board approval.

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Log the supplier's delivery change in the Risk Register and continue with the existing Project Plan, because the project is still in Initiation and no baseline has been approved.

Answer

Immediately escalate to the Project Board by raising an exception report, because the supplier delay exceeds stage tolerances.

Question 15

A project is in the Initiation Stage. The project manager is assembling the Project Initiation Documentation (PID). Which TWO of the following are components of the PID? (Choose two.)

Accepted Answer

Business Case. The PID is a consolidation of key management products. It includes the Business Case, the Project Product Description, the project approach, the project management team structure, and the four management approaches: Risk, Quality, Change, and Communication. Therefore, the Business Case and Risk Management Approach are correct components. The other options are not part of the PID.

Answer

Benefits Review Plan

Answer

Project Board's Terms of Reference

Answer

Stage Plan for the Initiation Stage

Question 16

During the Initiation Stage, the Project Manager is assembling the Project Initiation Documentation (PID). The Project Board has asked how the project will tailor PRINCE2 to its specific context. Which PID component should the Project Manager produce to address this?

Accepted Answer

The Tailoring of PRINCE2 document. The Tailoring of PRINCE2 document is the PID component that records how the method is adapted to the project's specific needs. The Project Board requires this to understand the application of PRINCE2 principles, themes, and processes. The Project Plan, Quality Management Approach, and Communication Management Approach are PID components but they do not address tailoring of the method itself.

Answer

The Communication Management Approach

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The Quality Management Approach

Answer

The Project Plan

Question 17

A project is in the Initiation Stage. The Project Manager is preparing the Project Initiation Documentation and wants to ensure that the project's approaches are adequately defined. Which TWO of the following are purpose statements of a PRINCE2 approach? (Choose two.)

Accepted Answer

To describe how the project will manage changes to baselined products, including roles and responsibilities.. The Risk Management Approach and the Change Control Approach are two of the PRINCE2 approaches whose purpose is to define how specific aspects of the project will be managed. The Risk Management Approach covers risk procedures and responsibilities, while the Change Control Approach covers how changes to baselined products are managed. Stage Plans, the Business Case, and role descriptions serve different purposes.

Answer

To document the justification for the project, including costs, benefits, and risks.

Answer

To define the roles and responsibilities of the Project Board, Project Manager, and Team Manager.

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To provide a detailed schedule of activities, resources, and costs for the next stage of the project.

Question 18

A Project Manager is leading a small project using PRINCE2. The Project Board has just authorised the Initiation Stage. The Project Manager needs to understand what to produce by the end of this stage to gain approval to proceed to the next stage. Which management product must be produced and approved at the end of the Initiation Stage?

Accepted Answer

Project Initiation Documentation (PID). The Project Initiation Documentation (PID) is the management product produced during the Initiation Stage that consolidates the project's baseline and is presented to the Project Board for approval. Its approval authorises the project to proceed. While other products like the End Stage Report and Stage Plan are created, the PID is the definitive document for the 'authorise the project' decision.

Answer

End Stage Report

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Benefits Review Plan

Answer

Stage Plan

Question 19

A project is in the Initiation Stage. The project manager is defining the project management team structure. According to PRINCE2, which role is responsible for ensuring that the project delivers the expected benefits?

Accepted Answer

Senior User. In PRINCE2, the Senior User role is specifically responsible for ensuring that the project delivers the expected benefits. They represent the users' interests, specify benefits, and monitor their realization. The Executive focuses on the Business Case, the Project Manager on delivery, and the Senior Supplier on technical quality.

Answer

Executive

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Project Manager

Answer

Senior Supplier

Question 20

A Project Manager is in the Initiation Stage and is tailoring the project's approach to managing risk. The Project Board has requested that the risk management approach align with the project's complexity and include specific responsibilities and tolerances. Which TWO activities should the Project Manager perform to develop the Risk Management Approach effectively? (Choose two.)

Accepted Answer

Document the risk management procedures, including risk identification, assessment, and control.. The Risk Management Approach must define risk tolerances and document the procedures for managing risk. These activities ensure the approach is tailored to the project's complexity and provides clear guidance on responsibilities and escalation. Creating the Risk Register and assigning a single risk owner are separate or inappropriate actions, and adopting a previous approach without tailoring fails to address the project's specific needs.

Answer

Review the risk management approach from a previous similar project and adopt it without changes.

Answer

Create the Risk Register and populate it with all known risks.

Answer

Assign the Senior User as the risk owner for all project risks.