PRINCE2-PRACTITIONER Practice Test 5 — 25 Questions

Question 1

A project manager is developing a Stage Plan using product-based planning. The project includes software development and strict environmental compliance documentation. During the creation of the Product Flow Diagram, the team realizes that the environmental compliance audit must be completed *before* software deployment can be signed off. How is this dependency represented?

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

Accepted Answer

As a prerequisite dependency link on the Product Flow Diagram.. In PRINCE2 product-based planning, the Product Flow Diagram (PFD) shows the sequence and dependencies between products. A prerequisite dependency, where one product must be completed before another can start, is represented as a dependency link (arrow) from the prerequisite product to the dependent product. Here, the environmental compliance audit must be completed before software deployment sign-off, so this is a prerequisite dependency link on the PFD.

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As a hierarchical parent-child branch in the Product Breakdown Structure.

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As an Exception Report submitted to the Board.

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As an entry in the Quality Register under test failures.

Question 2

A PRINCE2 project is operating with a Team Manager who discovers that a work package cannot be completed within the agreed time tolerance due to unexpected technical complexity. According to PRINCE2, what is the Team Manager's immediate reporting duty?

Accepted Answer

Notify the Project Manager immediately so the impact on stage tolerances can be assessed.. According to PRINCE2, the Team Manager is responsible for managing the work package and must inform the Project Manager as soon as it is forecast that the work package will exceed its tolerances. The Project Manager then assesses the impact on stage tolerances and decides whether to escalate. Direct escalation to the Project Board or raising an Exception Report is not the Team Manager's duty.

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Escalate directly to the Project Board by raising an Exception Report.

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Quietly extend the work package deadline without telling anyone.

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Submit a Request for Change to Corporate, Programme Management or Portfolio Direction.

Question 3

Which THREE of the following factors should be considered when applying the PRINCE2 principle 'Tailor to suit the project'?

Accepted Answer

The risk profile and geographical dispersion of the project team.. Option B is correct because tailoring must reflect the project's risk profile and the geographical dispersion of the team, which directly affect how processes, roles, and communication are adapted. Option D is correct because the scale, complexity, and importance of the project determine the appropriate level of formality, documentation, and control applied to PRINCE2. Option E is correct because tailoring must align with the organization's culture, environment, and existing corporate governance standards so PRINCE2 integrates with, rather than conflicts with, established practices. Option A is wrong because PRINCE2 principles are mandatory and cannot be altered or omitted to suit executive convenience; only the processes, themes, and terminology are tailored. Option C is wrong because tailoring is driven by project and organizational factors, not by individual team members' personal preferences or favorite management frameworks.

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The requirement to alter mandatory PRINCE2 principles to suit executive convenience.

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The personal preferences and favorite management frameworks of individual team members.

Question 4

Before closing a project, the Project Manager compiles a report detailing what went well and what went poorly, storing it in the corporate repository for future project managers to access. Which PRINCE2 principle is this fulfilling?

Accepted Answer

Learn from experience. The scenario describes compiling a report on what went well and what went poorly and storing it for future project managers. This directly fulfills the 'Learn from experience' principle, which requires PRINCE2 projects to learn from previous projects and to capture lessons for future ones. The other principles do not specifically address this activity.

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Continued business justification

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Tailor to suit the project

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Focus on products

Question 5

Which PRINCE2 process is used by the Project Board to provide overall governance and control throughout the life of the project?

Accepted Answer

Directing a Project. Directing a Project (DP) is the process used by the Project Board to provide overall governance and control throughout the life of the project. It covers the Project Board's key decision points: authorizing initiation, authorizing the project, authorizing stage boundaries, giving ad-hoc direction, and authorizing project closure. DP runs from the pre-project phase through to project closure, making it the only process that spans the entire project lifecycle from a governance perspective.

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Managing Product Delivery

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Initiating a Project

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Controlling a Stage

Question 6

A newly appointed Project Manager finds that the project organization structure has combined the roles of the Executive and the Project Manager into a single individual to save costs. According to PRINCE2 7, what is the primary risk of this configuration?

Accepted Answer

It removes the vital separation between the person accountable for business justification and the person managing day-to-day delivery.. In PRINCE2 7, the Executive is accountable for the business justification and represents the business interests, while the Project Manager manages day-to-day delivery. Combining these roles removes the separation of accountability and delivery, which is a fundamental check and balance. This creates a conflict of interest and undermines the principle of defined roles and responsibilities.

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It invalidates the Risk Management Approach.

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It violates the principle of managing by stages because stage boundaries cannot be approved.

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It prevents the Project Manager from utilizing team managers.

Question 7

In the PRINCE2 Quality practice, what is the purpose of a Product Description?

Accepted Answer

To define an individual product's purpose, composition, derivation, and quality criteria.. The Product Description is a PRINCE2 document that defines an individual product's purpose, composition, derivation, and quality criteria. It is created during product-based planning and forms the basis for agreeing what must be produced and how it will be quality-checked. Option D captures all four required elements of a Product Description as defined in the PRINCE2 Quality practice.

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To schedule team activities on a Gantt chart.

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To outline the project budget and financial cash flow.

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To log all project risks and their mitigation actions.

Question 8

During planning, the Project Manager is breaking down the product deliverables using product-based planning. Which PRINCE2 7 product-based planning step identifies the dependencies between products?

Accepted Answer

Creating the Product Flow Diagram. In PRINCE2 7 product-based planning, the Product Flow Diagram (PFD) is the step that maps the sequence and dependencies between products, showing which products must be created before others. It is derived from the Product Breakdown Structure and provides the input for activity sequencing and scheduling. The PFD explicitly identifies the 'create before' relationships, making it the correct answer for identifying dependencies.

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Writing Product Descriptions

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Writing the Project Product Description

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Creating the Product Breakdown Structure

Question 9

Which THREE PRINCE2 processes are managed primarily by the Project Manager?

Accepted Answer

Controlling a Stage. Controlling a Stage (C) is a Project Manager process because the PM authorizes work packages, monitors progress, reviews the stage situation, and takes corrective action to keep the stage on track. Initiating a Project (D) is also owned by the Project Manager, who prepares the Project Initiation Documentation, business case, plans, and controls before the project is authorized to proceed. Managing a Stage Boundary (E) is likewise a Project Manager process, used to review the current stage, update the project plan and business case, and prepare the next Stage Plan for the Project Board's approval. By contrast, Directing a Project (A) is the Project Board's process, not the Project Manager's, and Managing Product Delivery (B) is primarily the Team Manager's process for accepting, executing, and delivering work packages.

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Directing a Project

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Managing Product Delivery

Question 10

In the PRINCE2 Plans practice, what is the name of the hierarchical structure that breaks down the project into its constituent products?

Accepted Answer

Product Breakdown Structure. The Product Breakdown Structure (PBS) is the hierarchical diagram used in PRINCE2 to decompose the project into its constituent products, both management and specialist. It shows the products that must be created and their relationships, forming the basis for product flow diagrams and product descriptions. The PBS is a key component of the Plans theme, ensuring that all required products are identified and defined before planning activities and resources.

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Risk Breakdown Structure

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Work Breakdown Structure

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Organizational Breakdown Structure

Question 11

A PRINCE2 project is executing a stage when an unexpected risk event occurs. The risk was previously identified and evaluated as having a medium impact, and a contingency reserve was set aside. The risk materializes, and the contingency reserve is used. How should this be recorded in the Risk Register?

Accepted Answer

Update the Risk Register to record that the risk has materialized and the planned response was executed.. When a previously identified risk materializes and the planned response is executed, the Risk Register must be updated to reflect that the risk has occurred and the response was implemented. This ensures that the risk status is current and that lessons can be learned. The Risk Register is a living document that tracks the status of all risks throughout the project.

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Convert the risk into an End Stage Report.

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Raise a Request for Change to corporate management.

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Delete the risk entry from the Risk Register immediately.

Question 12

Which document is created during the Initiating a Project process to define the mechanisms for measuring whether the project's expected outcomes have been achieved post-project?

Accepted Answer

Benefits Management Approach. The Benefits Management Approach is the PRINCE2 document created during the Initiating a Project process that defines how the project's expected benefits will be measured, reviewed, and realized after the project closes. It specifies the mechanisms, roles, timing, and criteria for post-project benefit reviews, ensuring the Business Case's promised outcomes can be verified. It is a key output of the 'Prepare the Benefits Management Approach' activity within Initiating a Project.

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Project Brief

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Stage Plan

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End Project Report

Question 13

A project manager is developing a Business Case and needs to account for the operational costs that will occur after the project is completed and handed over to operations. What PRINCE2 term describes these ongoing costs?

Accepted Answer

Whole-life costs. Whole-life costs in PRINCE2 refer to the total cost of ownership of a project's output over its entire life, including operational costs after handover. The Business Case must account for these ongoing costs to assess the project's continued viability. Option D correctly identifies the term for these post-project operational costs.

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Contingency reserves

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Stage tolerance costs

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Sunk costs

Question 14

A project manager is preparing the Business Case for a public infrastructure project. In accordance with PRINCE2 7, the organization mandates that all projects evaluate the 'Governance' (G) pillar of ESG. Which element should be included in the Business Case to satisfy this requirement?

Accepted Answer

Transparent procurement processes, anti-corruption controls, and ethical compliance frameworks. The 'Governance' pillar of ESG focuses on how an organization is directed and controlled, including ethical practices, transparency, and anti-corruption measures. Option B correctly lists transparent procurement processes, anti-corruption controls, and ethical compliance frameworks as elements to include in the Business Case to satisfy the governance requirement. This aligns with PRINCE2 7's emphasis on integrating ESG factors into project justification.

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Net present value and internal rate of return calculations

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Supplier carbon emission metrics

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Employee health and safety statistics

Question 15

A PRINCE2 project is executing a stage. The Project Manager discovers that due to an unexpected supply chain bottleneck, the stage will finish 3 weeks late, which breaches the stage time tolerance. The Project Manager prepares an Exception Report and an Exception Plan. Who has the authority to approve the Exception Plan?

Accepted Answer

Project Board. The Project Board is responsible for approving Exception Plans. When a stage is predicted to exceed its tolerance, the Project Manager escalates the issue by creating an Exception Report and an Exception Plan. The Project Board, as the authority responsible for the overall project, reviews and approves the Exception Plan to bring the project back on track.

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Project Manager

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Team Manager

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Corporate, Programme Management or Portfolio Direction

Question 16

During a PRINCE2 project stage, the Project Manager forecasts that the stage cost will exceed the upper cost tolerance by 5%. According to the Progress practice, what is the mandatory action the Project Manager must take?

Accepted Answer

Raise an Exception Report and submit it to the Project Board.. According to the PRINCE2 Progress practice, if the Project Manager forecasts that stage costs will exceed the upper cost tolerance, this constitutes an exception. The Project Manager must raise an Exception Report and submit it to the Project Board, as the Project Board is responsible for authorizing exceptions and deciding on corrective actions. This ensures that the project remains within the agreed tolerances and that the Board can make informed decisions.

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Quietly borrow funds from the next stage's budget without informing the Project Board.

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Absorb the cost overrun by reducing the quality checks on deliverables.

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Close the project immediately.

Question 17

A project is operating under a commercial contract where the supplier is incentivized to deliver early. However, early delivery increases environmental resource consumption (ESG trade-off). The Project Board needs to evaluate this trade-off. Which practice is primarily responsible for balancing benefits, dis-benefits, and costs?

Accepted Answer

The Business Case practice. The Business Case practice is responsible for balancing benefits, dis-benefits, costs, and risks to ensure the project remains viable and aligned with strategic objectives. When a commercial incentive (early delivery) creates an ESG trade-off (higher resource consumption), that trade-off directly affects the project's value proposition and must be evaluated within the Business Case. The Project Board uses the Business Case to decide whether the net benefit still justifies continued investment.

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The Quality practice

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The Risk practice

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The Progress practice

Question 18

An organization is applying PRINCE2 7 to a complex transformation program. The Executive realizes that the project's benefits realization schedule has drifted by 6 months due to operational delays in adopting the new systems. Who is accountable for ensuring that the Benefits Management Approach is executed post-project?

Accepted Answer

Corporate management and operational owners, as defined in the Benefits Management Approach. In PRINCE2 7, the Benefits Management Approach defines how and by whom benefits will be measured and managed after the project closes. Accountability for executing this approach typically rests with corporate management and operational owners, as they are responsible for realising benefits in the business-as-usual environment. The Project Manager is only responsible for setting up the approach, not for post-project execution.

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Project Assurance

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The Project Manager

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The Senior Supplier

Question 19

During the Initiating a Project process, the Project Manager is defining the Change Control Approach. What is the primary purpose of this approach?

Accepted Answer

To specify how potential issues and changes to baselined products will be logged, assessed, and controlled.. The Change Control Approach defines how the project will manage issues and changes to baselined products, including how they are logged, assessed, and controlled. It is part of the Project Initiation Documentation and ensures that changes are handled consistently and with appropriate authority.

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To outline how staff members will be hired and dismissed during the project.

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To determine how financial invoices are paid to external suppliers.

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To establish how benefits will be measured post-project.

Question 20

What is the primary purpose of the Starting up a Project process?

Accepted Answer

To ensure that the prerequisites for initiating a project are in place.. The Starting up a Project (SU) process is the pre-project process whose purpose is to ensure the prerequisites for initiating a project are in place — specifically, that the project mandate exists, the project team is appointed, the Project Brief is produced, and the initiation stage is planned. It answers the question 'do we have a viable and worthwhile project?' before committing resources to the Initiation Stage. It is deliberately short and ends with a decision (via the Project Board) on whether to proceed to Initiating a Project.

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To construct all specialist products and deliver them to the operational environment.

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To close the project and archive all project records.

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To manage the day-to-day execution of work packages.