PRINCE2-PRACTITIONER Practices Practice Test 2 — 15 Questions

Question 1

When integrating sustainability and ESG into the PRINCE2 Business Case practice, which THREE of the following are valid examples of evaluating the Triple Bottom Line?

Accepted Answer

Calculating the net present value (NPV) and return on investment (ROI) of project cash flows.. The Triple Bottom Line evaluates performance across three dimensions: profit (economic), people (social), and planet (environmental). Option A is correct because calculating NPV and ROI of project cash flows directly measures the economic/profit dimension of the Triple Bottom Line within the Business Case. Option C is correct because evaluating community labor standards, worker health and safety, and societal wellbeing addresses the social/people dimension. Option D is correct because assessing lifecycle carbon emissions and resource depletion covers the environmental/planet dimension. Option B does not belong because drafting WBS activity schedules is a planning/scheduling activity, not a Triple Bottom Line evaluation. Option E does not belong because recording informal notes in the Daily Log is routine progress documentation, not an assessment of economic, social, or environmental value.

Answer

Drafting individual Work Breakdown Structure (WBS) activity schedules for team members.

Answer

Recording daily informal notes in the Project Manager's Daily Log.

Question 2

Which TWO of the following documents are core management products produced during the Initiating a Project process to establish project baselines?

Accepted Answer

Project Plan. The Project Plan (A) is correct because it is one of the core management products created during Initiating a Project, providing the baselines for cost, schedule, scope, risk, quality, and benefits against which the project will be managed and progress measured. The Project Initiation Documentation (PID) (D) is correct because it is the primary output of Initiating a Project, assembling the Project Plan and other baseline products (such as the business case, benefits management approach, and risk/quality/change approaches) into a single reference point that establishes the project's baselines and is approved by the Project Board. The End Project Report (B) is not correct because it is produced during Closing a Project to evaluate performance against the baselines, not to establish them. The Checkpoint Report (C) is not correct because it is a progress report produced during Managing a Stage Boundary/Controlling a Stage by the Team Manager to report stage status. The Exception Report (E) is not correct because it is produced during Controlling a Stage when a stage or project is forecast to exceed its tolerances, not during Initiating a Project.

Answer

End Project Report

Answer

Checkpoint Report

Answer

Exception Report

Question 3

Which THREE of the following are recognized risk response categories for threats within the PRINCE2 Risk practice?

Accepted Answer

Transfer. In PRINCE2's Risk practice, the recognized threat response categories are Avoid, Transfer (or Share), Mitigate (or Reduce), Accept, and Prepare (contingency). Option B (Transfer) is correct because it shifts the financial impact of a threat to a third party, for example via insurance or outsourcing. Option C (Mitigate) is correct because it takes action to reduce the probability and/or impact of the threat to an acceptable level. Option E (Avoid) is correct because it eliminates the threat entirely by changing the scope, approach, or plan so the risk no longer applies. Options A (Exploit) and D (Enhance) are not threat responses; they are opportunity responses used to realize or maximize positive risks, so they do not belong here.

Answer

Exploit

Answer

Enhance

Question 4

When managing risks within the PRINCE2 Risk practice, which THREE of the following actions are associated with responding to opportunities (positive risks)?

Accepted Answer

Exploit. In PRINCE2's Risk practice, opportunities (positive risks) are responded to using a distinct set of response types, and the three correct answers here are Exploit (A), Enhance (B), and Share (C). Exploit (A) is correct because it is the opportunity response that seeks to make the opportunity definitely happen and realize the benefit, removing uncertainty to capture the positive outcome. Enhance (B) is correct because it aims to increase the probability and/or impact of an opportunity, maximizing the potential benefit rather than eliminating it. Share (C) is correct because it allocates ownership of the opportunity to a third party best able to capture the benefit for the project, often through a partnership or contractual arrangement. Avoid (D) and Transfer (E) are not correct here because they are threat (negative risk) responses: Avoid eliminates the threat by removing its cause, and Transfer shifts the threat's financial impact to a third party (e.g., insurance).

Answer

Avoid

Answer

Transfer

Question 5

Which THREE of the following are valid methods or tools used in the PRINCE2 Plans practice for product-based planning?

Accepted Answer

Product Flow Diagram (PFD). The PRINCE2 product-based planning technique uses three core products: the Project Product Description (D), which defines the overall project output, its customer quality expectations and acceptance criteria; the Product Breakdown Structure (E), which hierarchically decomposes the project product into its component products; and the Product Flow Diagram (C), which shows the sequence and dependencies in which those products are developed. These three together form the recognized product-based planning steps in the Plans practice. Option A (Risk Breakdown Structure) is a risk management technique for categorizing risks, not a product-based planning tool, and option B (Daily Log) is a progress/issue recording document used in the Progress practice, not part of product-based planning.

Answer

Risk Breakdown Structure

Answer

Daily Log

Question 6

Which TWO of the following statements correctly reflect how PRINCE2 7 treats the integration of sustainability and ESG across the practices?

Accepted Answer

Sustainability and ESG factors are embedded across the existing practices rather than treated as a separate standalone practice.. Option A is correct because PRINCE2 7 deliberately integrates sustainability and ESG considerations into the existing practices (such as Business Case, Risk, Plans, and Organizing) rather than creating a new, separate sustainability practice. Option E is correct because the Business Case practice in PRINCE2 7 assesses sustainability performance using the Triple Bottom Line approach, which evaluates economic, social, and environmental outcomes rather than focusing on financial return alone. Option B is incorrect because ESG metrics supplement, not replace, financial metrics; projects still require financial viability assessments. Option C is incorrect because sustainability-related uncertainties are legitimate risks and should be captured in the Risk Register. Option D is incorrect because the Organizing practice encourages identifying and engaging relevant stakeholders, including those representing environmental interests.

Answer

ESG metrics replace all financial metrics in every PRINCE2 project automatically.

Answer

Sustainability risks are prohibited from being entered into the Risk Register.

Answer

The Organizing practice forbids the inclusion of environmental stakeholder representatives.

Question 7

A project is utilizing a hybrid delivery approach where initial stages are managed via traditional plans, but later delivery increments use iterative product delivery. The Project Manager is establishing the Plans practice. Which plan type must be maintained as a rolling wave plan throughout the project lifecycle?

Accepted Answer

The Stage Plan. In PRINCE2, the Stage Plan is the only plan that is explicitly designed as a rolling wave plan, meaning it is produced for the next stage only and updated as the project progresses. This allows the Project Manager to manage the current stage in detail while keeping the Project Plan at a higher level. Because the project uses a hybrid approach, the Stage Plan can accommodate iterative delivery increments within each stage, making it the correct choice.

Answer

The Project Plan

Answer

The Team Plan

Answer

The Benefits Management Plan

Question 8

A project is developing a sustainable supply chain management system. The Business Case includes both financial ROI and non-financial ESG metrics. Who is ultimately responsible for evaluating and confirming the achievement of these benefits after the project has closed?

Accepted Answer

The Executive and Senior User. In PRINCE2, the Executive and Senior User share accountability for benefits realization after project closure. The Executive owns the Business Case and is accountable to the corporate organization for the project's overall value, while the Senior User is specifically accountable for realizing the benefits defined in the Business Case. Together they evaluate and confirm that the non-financial ESG metrics and financial ROI are achieved post-project.

Answer

The Project Manager

Answer

The Project Assurance team

Answer

The Project Board Chair (Corporate Management)

Question 9

A project is being set up in a matrix organization where resources are shared across multiple operational lines. Under the Organizing practice, what document should be created to define the communication channels, reporting lines, and stakeholder responsibilities?

Accepted Answer

Project Management Approach. The Project Management Team Approach defines how the project will be structured, communication channels, and governance relationships.

Answer

Business Case

Answer

Project Brief

Answer

Risk Management Approach

Question 10

A project is utilizing a benefits management approach. According to the Business Case practice, when should the formal Benefits Management Plan be created and baselined?

Accepted Answer

During project initiation as part of the Business Case development.. The formal Benefits Management Plan should be created and baselined during project initiation as part of the Business Case development. This ensures that the benefits are clearly defined, measurable, and aligned with the project's objectives before the project proceeds. It provides a baseline against which benefits can be managed and realized throughout and after the project.

Answer

After the project has closed and operational benefits begin.

Answer

During the Starting Up a Project process before the Project Brief is drafted.

Answer

During project closure, right before handing over to operations.

Question 11

A project board is reviewing a stage plan. They notice that the plan does not contain any quality review milestones or independent quality checks. Which practice guideline has been violated?

Accepted Answer

Plans practice. The Plans practice in PRINCE2 requires that plans include quality activities, such as quality reviews and independent quality checks, to ensure products meet their quality criteria. The stage plan lacking these milestones means the Plans practice guideline has been violated. The Plans practice ensures that plans are aligned with the quality management approach and include necessary quality control steps.

Answer

Business Case practice

Answer

Risk practice

Answer

Organizing practice

Question 12

An organization is launching a project to upgrade its IT infrastructure. As part of the Organizing practice, who represents the interests of those who will operate and maintain the IT infrastructure after project closure?

Accepted Answer

The Senior User. In PRINCE2's Organizing practice, the Senior User represents the interests of those who will use and operate the project's outputs, including those who will operate and maintain the IT infrastructure after closure. The Senior User is accountable for specifying user needs and ensuring benefits are realized, which includes operational stakeholders. The Senior Supplier represents those providing resources and expertise to build the products.

Answer

The Project Assurance Lead

Answer

The Senior Supplier

Answer

The Executive

Question 13

A project is undertaking product-based planning. The Project Manager has identified all products and their dependencies. What is the final artifact produced as a result of the Planning practice's product-based planning steps?

Accepted Answer

Product Descriptions for all identified products. In PRINCE2 product-based planning, the final artifact produced is the Product Descriptions for all identified products. The steps include writing the Project Product Description, creating the Product Breakdown Structure, writing Product Descriptions, and creating the Product Flow Diagram. Product Descriptions define the purpose, composition, derivation, format, quality criteria, and quality method for each product.

Answer

The Risk Register

Answer

The Highlight Report

Answer

The End Stage Report

Question 14

A project manager is setting up the Risk practice. They want to ensure that risks are evaluated not just by probability and impact, but also by how quickly a risk might materialize. Which risk attribute should be used to capture this time dimension?

Accepted Answer

Risk Proximity. Risk Proximity is the PRINCE2 risk attribute that captures how soon a risk might occur — its 'time dimension'. While probability measures likelihood and impact measures severity, proximity assesses urgency so the project can prioritize near-term risks for immediate response. This is why PRINCE2 risk registers include proximity alongside probability, impact, and proximity as core evaluation criteria.

Answer

Risk Impact

Answer

Risk Probability

Answer

Risk Tolerance

Question 15

Which TWO of the following are valid responsibilities of the Executive in PRINCE2 7? (Choose two)

Accepted Answer

Accountability for the Business Case and overall project justification.. Option A is correct because in PRINCE2 7 the Executive is the single point of accountability for the project and owns the Business Case, ensuring the project remains justified and aligned with business objectives throughout its life. Option C is correct because the Executive is responsible for designing and appointing the project management team, including selecting the Project Manager and other key roles, and ensuring the team structure fits the project's needs. Option B is not correct because Checkpoint Reports are produced by team members or Team Managers and submitted to the Project Manager, not by the Executive. Option D is not correct because day-to-day management of specialist team members is the responsibility of the Team Manager, not the Executive. Option E is not correct because writing detailed work package descriptions is a Project Manager responsibility, not an Executive one.

Answer

Submitting Checkpoint Reports to the Project Manager.

Answer

Conducting day-to-day management of specialist team members.

Answer

Directly writing detailed work package descriptions for suppliers.