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CCNA Practices Questions

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1
MCQmedium

A PRINCE2 project is being established across three different geographic regions. The Project Manager needs to define the reporting lines, authority levels, and communication channels for the project team. Which management product should be created or updated to capture this?

A.Stage Plan
B.Project Initiation Documentation (PID) containing the Project Management Team Structure
C.Resource Allocation Matrix
D.Communication Management Approach
AnswerB

The project management team structure outlines reporting lines and responsibilities within the PID.

Why this answer

The Project Management Team Structure, documented within the Project Initiation Documentation (PID), defines reporting lines, roles, and responsibilities.

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2
MCQhard

A project plan includes strict sustainability milestones to comply with new environmental regulations. During plan development, the Project Manager needs to ensure that dependencies between environmental audit checkpoints and procurement deliverables are accurately mapped. Which tool/technique supports this within product-based planning?

A.Product Flow Diagram
B.Product Breakdown Structure
C.Benefits Management Approach
D.Quality Register
AnswerA

The Product Flow Diagram charts the sequence and dependencies of the products identified in the breakdown structure.

Why this answer

The Product Flow Diagram shows the sequence of and dependencies between products, including prerequisite environmental review milestones.

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3
Multi-Selecthard

When applying product-based planning within the PRINCE2 Plans practice, which TWO of the following steps must be completed before estimating effort and scheduling activities?

Select 2 answers
A.Creating the final Gantt chart schedule of team work packages
B.Closing the project and writing the End Project Report
C.Writing the Project Product Description
D.Submitting an Exception Report to the Project Board
E.Creating the Product Breakdown Structure
AnswersC, E

The Project Product Description defines the overall target output and must be written first.

Why this answer

Product-based planning requires writing the Project Product Description, building the Product Breakdown Structure, creating the Product Flow Diagram, and writing Product Descriptions before activity scheduling.

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4
MCQhard

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?

A.As a hierarchical parent-child branch in the Product Breakdown Structure.
B.As a prerequisite dependency link on the Product Flow Diagram.
C.As an Exception Report submitted to the Board.
D.As an entry in the Quality Register under test failures.
AnswerB

Product Flow Diagrams show prerequisite relationships and sequence between products.

Why this answer

In a Product Flow Diagram, prerequisites and dependencies between products are explicitly mapped using directional arrows showing that the audit product must precede the deployment product.

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5
MCQeasy

In the PRINCE2 Risk practice, what is the primary difference between a risk and an issue?

A.Risks are positive, while issues are always negative.
B.Risks are managed by the Project Board, while issues are managed solely by Team Managers.
C.Risks relate to future uncertainty, whereas issues relate to events that have already occurred.
D.Risks require a Risk Register, while issues are never logged.
AnswerC

Risks are future uncertain events; issues are current realities that require management action.

Why this answer

A risk is an uncertain event that *might* occur, whereas an issue is an event that *has already* happened or is currently occurring.

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6
MCQeasy

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

A.Risk Breakdown Structure
B.Product Breakdown Structure
C.Work Breakdown Structure
D.Organizational Breakdown Structure
AnswerB

The Product Breakdown Structure maps out products hierarchically.

Why this answer

The Product Breakdown Structure (PBS) is a hierarchical decomposition of all the products to be produced during the project.

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7
MCQmedium

A project manager is analyzing a newly identified risk regarding potential supply chain disruption. After assessing its probability and impact, the project manager decides to engage with a key supplier to redesign the component to use locally sourced, sustainable materials instead. Which risk response category does this represent?

A.Avoid
B.Share
C.Transfer
D.Reduce
AnswerD

Correct. Taking action to alter probability or impact is a Reduce (mitigate) response.

Why this answer

Redesigning the product or process to reduce the probability or impact of a threat is classified as a 'Reduce' (or mitigate) response.

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8
MCQhard

During a project stage boundary, the Executive notices that external market shifts have reduced the projected financial return of the project below the organizational hurdle rate, though the ESG compliance benefits have increased. What is the most appropriate PRINCE2 practitioner action?

A.Instruct the Project Manager to remove the financial metrics and replace them entirely with carbon-offset equivalents.
B.Proceed with the next stage immediately as long as the Project Manager updates the Risk Register.
C.Escalate to Corporate, Programme Management or Portfolio Direction to assess if the enhanced ESG benefits justify a waiver of the financial hurdle rate.
D.Automatically cancel the project since the financial hurdle rate is no longer met.
AnswerC

Corporate management must decide if strategic and ESG drivers outweigh the shortfall in financial return.

Why this answer

The Executive must re-evaluate the Business Case against corporate portfolio priorities, considering whether non-financial or ESG mandates override pure financial returns before deciding to stop or continue.

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9
MCQmedium

A Team Manager wants to establish how frequently team progress should be reported to the Project Manager. Which report should be set up for this purpose?

A.Highlight Report
B.Checkpoint Report
C.Exception Report
D.End Stage Report
AnswerB

Correct. Checkpoint Reports are submitted by Team Managers to the Project Manager.

Why this answer

Team Managers use Checkpoint Reports to report progress on work packages to the Project Manager at agreed intervals.

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10
Multi-Selectmedium

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

Select 3 answers
A.Exploit
B.Transfer
C.Mitigate
D.Enhance
E.Avoid
AnswersB, C, E

Transfer is a valid response category for threats.

Why this answer

The four response categories for threats in PRINCE2 are Avoid, Transfer, Mitigate, and Accept.

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11
MCQeasy

In the PRINCE2 Quality practice, what is the primary purpose of a quality review meeting?

A.To examine a product against its quality criteria and detect defects.
B.To negotiate project budget increases with corporate management.
C.To brainstorm project risks and opportunities.
D.To evaluate team members' annual performance appraisals.
AnswerA

Quality review meetings evaluate products against their criteria to ensure fitness for purpose.

Why this answer

A quality review meeting assesses whether a product meets its defined quality criteria and detects defects.

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12
MCQhard

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?

A.The Project Manager
B.The Executive and Senior User
C.The Project Assurance team
D.The Project Board Chair (Corporate Management)
AnswerB

Correct. The Executive and Senior User remain accountable for benefits realization, often post-project.

Why this answer

Benefits realization often occurs after the project has closed. The Executive and Senior User are responsible for benefits realization, with corporate management usually owning the post-project benefits review.

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13
MCQhard

A project is using agile delivery methods within a PRINCE2 framework. The Project Board wants to receive progress updates on product increments rather than lengthy narrative reports. Which PRINCE2 progress reporting product should be tailored to meet this need?

A.Highlight Report
B.Checkpoint Report
C.Daily Log
D.End Stage Report
AnswerA

Highlight Reports are designed for the Project Board to monitor periodic progress and can be tailored for agile increments.

Why this answer

Highlight Reports are tailored to report periodic progress to the Project Board, and in agile contexts, they focus on completed increments and metrics.

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14
MCQeasy

In the PRINCE2 Issues practice, what is the purpose of an Issue Report?

A.To log identified project risks.
B.To provide a detailed analysis and recommendation for a formal issue requiring Project Board decision.
C.To summarize overall stage progress periodically.
D.To record daily meeting minutes of the project team.
AnswerB

The Issue Report details an issue's impact, options, and recommendations for the Board.

Why this answer

An Issue Report is used to document, analyze, and provide recommendations for formal issues (changes, off-specs, problems) that require Project Board escalation and decision-making.

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15
MCQeasy

An issue has been raised concerning a disagreement between the Senior User and a Supplier regarding product acceptance criteria. What type of issue is this?

A.A Risk Entry
B.A Request for Change
C.An Exception Report
D.A Problem or Concern
AnswerD

Correct. Disagreements and general concerns that do not fit neatly into RFC or off-specification are logged as problems or concerns.

Why this answer

Disagreements over requirements or criteria fall under off-specifications or general project issues, which must be logged in the Issue Register as a request for change, off-specification, or a problem/concerns.

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16
MCQhard

A project is incorporating ESG (Environmental, Social, and Governance) principles. In which practice is the overall sustainability strategy for the project's outputs and outcomes formally documented and justified?

A.The Business Case practice
B.The Organizing practice
C.The Quality practice
D.The Risk practice
AnswerA

Correct. The Business Case captures the justification for the project, including ESG and sustainability metrics.

Why this answer

The Business Case provides the justification for the project and contains the costs, benefits, and risks, including sustainability and ESG impacts.

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17
MCQeasy

A team member identifies a variance in project progress where a work package is running two weeks late. According to the Issues practice, what is the immediate first step the Project Manager should take?

A.Immediately issue an Exception Report to the Project Board.
B.Close the work package and assign the tasks to a new contractor.
C.Capture and log the issue in the Issue Register.
D.Modify the Stage Plan tolerance without consulting anyone.
AnswerC

Correct. All formal issues must be captured and logged.

Why this answer

When an event occurs that impacts the project plan and requires management intervention, it must be captured and logged as an issue.

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18
MCQhard

A project has experienced an unforecasted external market shift that drastically reduces the expected financial return, causing the Business Case to become unviable. According to the Business Case practice, what is the proper protocol?

A.Escalate the lack of viability to the Project Board so they can prematurely close the project.
B.Absorb the loss by cutting quality criteria across all product descriptions.
C.Transfer the financial shortfall to the Senior User's operational budget.
D.Continue the project until the current stage ends, then close it.
AnswerA

Correct. If a project ceases to be viable, the Project Board must stop it.

Why this answer

If the Business Case is no longer viable, the Project Manager must escalate this to the Project Board, who should then stop the project.

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19
MCQeasy

In the PRINCE2 Issues practice, what is the primary purpose of the Issue Register?

A.To record completed quality reviews and test results.
B.To list all financial invoices paid to suppliers.
C.To record daily informal notes and thoughts of the Project Manager.
D.To maintain a formal record of all formal issues raised during the project lifecycle.
AnswerD

The Issue Register tracks the status and handling of all formal issues.

Why this answer

The Issue Register captures and maintains information on all formal issues (requests for change, off-specifications, problems/concerns) raised during the project.

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20
MCQmedium

A project manager is setting up the project governance under the PRINCE2 Organizing practice. The project is financed by an external investor who wants representation on the governing board. Which PRINCE2 Project Board role should this investor typically occupy?

A.Senior Supplier
B.Project Assurance
C.Executive
D.Team Manager
AnswerC

The Executive owns the Business Case and financial justification, representing the financial stakeholder.

Why this answer

The Executive represents the business/financial interest and owns the Business Case, making external financial investors well-suited for the Executive role.

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21
MCQhard

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?

A.It invalidates the Risk Management Approach.
B.It violates the principle of managing by stages because stage boundaries cannot be approved.
C.It removes the vital separation between the person accountable for business justification and the person managing day-to-day delivery.
D.It prevents the Project Manager from utilizing team managers.
AnswerC

PRINCE2 requires a separation of powers between business ownership (Executive) and day-to-day management (Project Manager).

Why this answer

PRINCE2 mandates separation of responsibilities; combining the Executive (who owns the business case) and the Project Manager (who manages day-to-day delivery) removes independent governance and checks-and-balances.

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22
MCQeasy

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

A.To schedule team activities on a Gantt chart.
B.To outline the project budget and financial cash flow.
C.To log all project risks and their mitigation actions.
D.To define an individual product's purpose, composition, derivation, and quality criteria.
AnswerD

Product Descriptions specify what a product is, how it is made, and how quality is verified.

Why this answer

A Product Description defines a product's purpose, composition, derivation, quality criteria, and quality method.

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23
MCQeasy

In the PRINCE2 Progress practice, what is the name of the report produced by a Team Manager to inform the Project Manager of team-level progress?

A.Highlight Report
B.Exception Report
C.Checkpoint Report
D.End Stage Report
AnswerC

Checkpoint Reports provide team-level progress updates to the Project Manager.

Why this answer

A Checkpoint Report is used by Team Managers to report progress on work packages to the Project Manager.

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24
MCQhard

An organization applies PRINCE2 and uses rolling wave planning within the Plans practice. During Stage 2 execution, the Project Manager begins detailed planning for Stage 3. New environmental regulations come into light that require a complete redesign of Stage 3 deliverables. How should the Plans practice accommodate this?

A.Halt the entire project permanently without reviewing options.
B.Submit an Exception Report for Stage 2.
C.Incorporate the regulatory requirements into the detailed Stage 3 Plan during the stage boundary review for Stage 2/3.
D.Ignore the new regulations because Stage 3 was already outlined in the high-level Project Plan.
AnswerC

Rolling wave planning enables detailed stage plans to incorporate current information just before the stage starts.

Why this answer

Rolling wave planning allows the detailed plan for near-term stages to be created just in time, incorporating newly emerged regulatory and environmental requirements seamlessly.

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25
MCQmedium

An infrastructure project is facing severe delays because local stakeholder groups are protesting potential ecological disruption. The Project Manager needs to review the Business Case to check which component specifically captures the wider environmental and societal consequences.

A.Benefits realization plan
B.Project Product Description
C.Triple Bottom Line impact assessment
D.Risk Register
AnswerC

PRINCE2 7 highlights evaluating environmental and societal costs alongside financial ones using the Triple Bottom Line.

Why this answer

PRINCE2 7 integrates sustainability and ESG into the Business Case via the 'Triple Bottom Line' approach, capturing financial, social, and environmental impacts.

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26
MCQeasy

In the PRINCE2 Risk practice, what is the name of the log used to capture and maintain information on all identified threats and opportunities?

A.Issue Register
B.Daily Log
C.Quality Register
D.Risk Register
AnswerD

The Risk Register captures all identified threats and opportunities.

Why this answer

The Risk Register is the repository for all identified risks (both threats and opportunities) along with their analysis and responses.

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27
Multi-Selectmedium

Which TWO of the following are true regarding the Quality practice in PRINCE2 7? (Choose two)

Select 2 answers
A.Quality reviews are optional and only conducted if the budget permits.
B.Team Managers are responsible for approving the overarching Quality Management Approach.
C.Quality management requires defining customer quality expectations and acceptance criteria.
D.The Quality Management Approach describes how quality will be managed on the project.
E.Project managers should encourage teams to exceed agreed acceptance criteria ('gold-plating').
AnswersC, D

Correct. Defining expectations and acceptance criteria is fundamental to quality.

Why this answer

The Quality practice involves customer quality expectations and acceptance criteria, and requires a Quality Management Approach document. Quality is not about gold-plating, but meeting agreed criteria.

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28
MCQeasy

A project manager is recording an uncertainty that could have a positive impact on the project schedule. Where should this uncertainty be logged?

A.The Issue Register
B.The Risk Register
C.The Benefits Management Plan
D.The Daily Log
AnswerB

Correct. All risks (threats and opportunities) are recorded in the Risk Register.

Why this answer

Uncertainties that could impact the project (both threats and opportunities) are recorded in the Risk Register.

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29
MCQhard

A Project Manager receives a Request for Change that would increase the project's carbon footprint beyond the target set in the Business Case's sustainability parameters, but it would shorten the schedule by two weeks. The Project Manager checks the project's stage tolerances for time and cost. What is the correct next step?

A.Assess the impact on the Business Case and escalate the Request for Change to the Project Board.
B.Approve the change immediately since it falls within the stage time tolerance.
C.Log the change in the Risk Register as a secondary threat.
D.Reject the change automatically because sustainability parameters cannot be altered.
AnswerA

Changes affecting the Business Case (including ESG baselines) must be escalated to the Project Board for a decision.

Why this answer

Changes affecting Business Case baselines (such as sustainability parameters or overall scope) must be evaluated and approved by the Project Board, regardless of stage tolerances.

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30
MCQhard

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?

A.After the project has closed and operational benefits begin.
B.During the Starting Up a Project process before the Project Brief is drafted.
C.During project initiation as part of the Business Case development.
D.During project closure, right before handing over to operations.
AnswerC

Correct. The Benefits Management Plan is created during initiation to outline how and when benefits will be measured.

Why this answer

The Benefits Management Plan is initially created during the Initiating a Project process and is baselined when the Project Plan and Business Case are approved for project initiation/execution.

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31
MCQeasy

In the PRINCE2 Quality practice, what is the term used for the specific characteristics that a product must possess to meet stakeholder expectations and standards?

A.Risk thresholds
B.Quality criteria
C.Benefit measures
D.Project tolerances
AnswerB

Quality criteria define the measurable attributes a product must possess.

Why this answer

Quality criteria are the specific, measurable conditions that a product must meet to be acceptable to stakeholders.

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32
MCQeasy

During stage execution, a Team Manager realizes that a work package cannot be completed within the agreed time tolerance due to unexpected technical hurdles. What should the Team Manager do according to the Issues practice?

A.Directly submit an Exception Report to the Project Board.
B.Inform the Project Manager immediately by raising an issue.
C.Quietly absorb the delay by reducing product quality.
D.Cancel the work package and hire a new team.
AnswerB

Correct. Team Managers must notify the Project Manager promptly when work package tolerances are threatened.

Why this answer

When a Team Manager forecasts that a work package tolerance will be exceeded, they must immediately raise an issue (specifically a problem/concern or notification) to the Project Manager.

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33
MCQmedium

A project manager is configuring the Progress practice and wants to establish how frequently Team Managers must report progress. Where should this reporting frequency be documented?

A.The End Stage Report
B.The Business Case
C.Project Management Approach
D.The Risk Register
AnswerC

Correct. The Project Management Approach outlines communication methods and reporting frequencies.

Why this answer

The reporting frequency and communication channels for Team Managers are documented in the Project Management Approach or work package instructions.

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34
MCQmedium

A project is nearing the end of a management stage. The Project Manager has drafted an End Stage Report. Who is responsible for reviewing and approving the End Stage Report?

A.The Team Managers
B.Corporate Quality Assurance
C.External auditors
D.The Project Board
AnswerD

Correct. The Project Board reviews the End Stage Report to authorize the next stage.

Why this answer

The End Stage Report is reviewed by the Project Board to assess stage performance and decide whether to authorize the next stage plan.

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35
MCQmedium

A project is developing a new software system. The Project Manager discovers that one of the operational benefits listed in the Business Case will actually occur 12 months *after* the project has officially closed. How should this be handled under PRINCE2 7?

A.Extend the project lifecycle by 12 months to allow the Project Manager to track the benefit.
B.Delete the benefit from the Benefits Management Approach because project closure terminates all benefit tracking.
C.Transfer accountability for the Business Case to the Senior Supplier once the software is deployed.
D.Ensure post-project benefit reviews are scheduled and handed over to operational management in the Benefits Management Approach.
AnswerD

Post-project benefit reviews are defined in the Benefits Management Approach and managed operationally.

Why this answer

Post-project benefit realization activities must be assigned ownership and tracked through the corporate benefits review mechanisms, as accountability often extends beyond project closure.

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36
MCQeasy

In PRINCE2, what is the primary purpose of the Progress practice?

A.To define the quality standards and review methods.
B.To identify and evaluate project risks and opportunities.
C.To monitor and control achievements against plans and ensure continued viability.
D.To establish the initial business case justification.
AnswerC

Progress mechanisms track where we are against where we planned to be.

Why this answer

The Progress practice provides mechanisms to monitor and compare actual achievements against plans, provide forecasting, and control changes/exceptions.

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37
Multi-Selecthard

When setting up the Business Case practice, which THREE of the following components should be included in the Business Case document? (Choose three)

Select 3 answers
A.Costs and investment appraisal
B.Reasons for the project and strategic context
C.Detailed risk response owners for individual technical risks
D.Expected benefits and dis-benefits (including ESG impacts)
E.Daily office attendance rosters for team members
AnswersA, B, D

Correct. Costs and financial appraisal justify the investment.

Why this answer

A Business Case includes executive summary, reasons for the project, business options, expected benefits, dis-benefits, costs, and investment appraisal. Daily check-in times and risk response owners are not part of the Business Case.

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38
MCQmedium

A PRINCE2 project is conducting a formal quality review for a safety-critical engineering component. During the review, a minor defect is found that can be easily corrected within the planned stage time and cost. What is the correct procedure for handling this defect?

A.Record the defect as a required action for the author to correct before re-submitting for review.
B.Escalate an Exception Report to the Project Board.
C.Submit a Request for Change to corporate management.
D.Reject the entire project immediately.
AnswerA

Quality reviews result in a review record detailing actions required to fix minor defects.

Why this answer

Minor defects found during a quality review are recorded as corrective actions for the author to fix, without necessarily raising an off-specification unless it breaches criteria permanently or cannot be resolved locally.

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39
MCQeasy

In the PRINCE2 Issues practice, what is the primary purpose of a Request for Change?

A.To report a defect in a product that failed its quality review.
B.To request additional risk register entries.
C.To request extra vacation time for the project manager.
D.To formally propose a modification to a project baseline.
AnswerD

A Request for Change proposes altering established baselines.

Why this answer

A Request for Change is a formal proposal to modify a project baseline (such as scope, products, or plans).

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40
MCQhard

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?

A.Escalate directly to the Project Board by raising an Exception Report.
B.Notify the Project Manager immediately so the impact on stage tolerances can be assessed.
C.Quietly extend the work package deadline without telling anyone.
D.Submit a Request for Change to Corporate, Programme Management or Portfolio Direction.
AnswerB

Team Managers must alert the Project Manager as soon as work package tolerances are forecast to be breached.

Why this answer

When a Team Manager forecasts a tolerance breach within a work package, they must immediately inform the Project Manager via a Checkpoint Report or ad-hoc notification so the Project Manager can take action.

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41
MCQmedium

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?

A.Convert the risk into an End Stage Report.
B.Raise a Request for Change to corporate management.
C.Delete the risk entry from the Risk Register immediately.
D.Update the Risk Register to record that the risk has materialized and the planned response was executed.
AnswerD

Risk status must be kept current to reflect execution of responses.

Why this answer

When a risk materializes, its status in the Risk Register must be updated to reflect that it has occurred and transitioned into an issue if it requires ongoing management, or that the response was executed.

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42
MCQeasy

A project manager wants to ensure that all changes to project baselines are formally controlled. Under which practice is change control managed?

A.The Organizing practice
B.The Quality practice
C.The Issues practice
D.The Progress practice
AnswerC

Correct. Change control is a core component of the Issues practice.

Why this answer

Change control and the handling of issues, requests for change, and off-specifications are governed by the Issues practice.

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43
MCQhard

A PRINCE2 project is implementing an AI system. The risk management team identifies an ethical risk regarding biased algorithmic outputs. The project team decides to implement continuous algorithmic auditing and diverse training datasets. Which risk response is being applied?

A.Accept
B.Mitigate
C.Avoid
D.Transfer
AnswerB

Audits and diverse datasets reduce the probability/impact of bias, representing risk mitigation.

Why this answer

Proactive measures to reduce the probability or impact of a threat constitute 'Mitigate'.

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44
MCQmedium

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?

A.Quietly borrow funds from the next stage's budget without informing the Project Board.
B.Absorb the cost overrun by reducing the quality checks on deliverables.
C.Raise an Exception Report and submit it to the Project Board.
D.Close the project immediately.
AnswerC

Forecasted tolerance breaches require an Exception Report to be raised for the Project Board.

Why this answer

When a forecast indicates that tolerances will be exceeded, the Project Manager must raise an Exception Report and notify the Project Board immediately.

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45
Multi-Selectmedium

Which TWO of the following reports are used in the Progress practice to communicate status between different levels of management? (Choose two)

Select 2 answers
A.Business Case Review (Team Manager to Senior User)
B.Risk Log Summary (Supplier to External Auditor)
C.Checkpoint Report (Team Manager to Project Manager)
D.Project Product Description (Executive to Corporate Management)
E.Highlight Report (Project Manager to Project Board)
AnswersC, E

Correct. Checkpoint reports communicate progress from team managers to the project manager.

Why this answer

Highlight Reports go from Project Manager to Project Board, and Checkpoint Reports go from Team Manager to Project Manager.

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46
MCQhard

A PRINCE2 project is implementing an enterprise-wide software system. The Project Manager wants to ensure that all business units affected by the change are adequately represented in decision-making and requirements-gathering. Which PRINCE2 practice and governance structure addresses this?

A.Progress practice through Highlight Reports
B.Organizing practice through the appointment of Senior Users representing affected business units
C.Quality practice through Quality Review meetings
D.Plans practice through Product Flow Diagrams
AnswerB

The Senior User role ensures user and operational representation across all affected areas.

Why this answer

The Organizing practice establishes the project management team, specifically appointing Senior Users to represent user interests across affected business units.

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47
MCQhard

A project team is implementing an agile delivery approach. The Project Manager is configuring the Plans practice to support iterative product delivery. How should the plans be structured to ensure PRINCE2 governance while allowing agile flexibility?

A.Replace all Stage Plans with a single immutable Project Plan.
B.Maintain management stages with Stage Plans, while using iterative delivery increments for product creation.
C.Force all deliverables into rigid 12-month delivery blocks.
D.Eliminate the Project Plan and rely solely on informal team whiteboards.
AnswerB

Correct. PRINCE2 accommodates agile by keeping management stages while allowing iterative product delivery within them.

Why this answer

Under a hybrid/agile approach, management stages remain time-driven (governed by the Project Board via Stage Plans), while delivery increments within those stages can be iterative and planned in detail via team plans or rolling wave increments.

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48
MCQmedium

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?

A.Contingency reserves
B.Stage tolerance costs
C.Sunk costs
D.Whole-life costs
AnswerD

Whole-life costs encompass both development costs and ongoing operational/maintenance costs.

Why this answer

Ongoing costs incurred after project handover to operate and maintain the output are termed operational costs or whole-life costs alongside development costs.

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49
MCQmedium

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?

A.Project Manager
B.Team Manager
C.Corporate, Programme Management or Portfolio Direction
D.Project Board
AnswerD

The Project Board approves Exception Plans to replace the remainder of a breached stage.

Why this answer

The Project Board has the authority to approve Exception Plans when stage tolerances are forecast to be breached.

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50
MCQhard

A PRINCE2 project is adopting agile delivery. The Project Board is concerned that product quality might be compromised due to rapid, iterative coding cycles. Which PRINCE2 practice and tool combination should the Project Manager emphasize to reassure the Board?

A.Plans practice using Product Flow Diagrams to map out every single line of code.
B.Risk practice using risk avoidance to halt all agile sprints.
C.Quality practice using clear Product Descriptions with acceptance criteria and defined quality review methods for every increment.
D.Progress practice using daily Highlight Reports sent to the Executive.
AnswerC

Rigorous quality criteria in Product Descriptions ensure standards are met even in fast agile cycles.

Why this answer

The Quality practice, supported by rigorous Product Descriptions containing explicit quality criteria and independent quality reviews during each increment, addresses this concern.

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51
MCQmedium

A project manager is setting up the project organization. The project involves highly specialized nuclear engineering. The Senior Supplier wants to delegate technical oversight to an external subcontractor. According to PRINCE2, who remains ultimately accountable for the supplier's delivery performance on the Project Board?

A.Project Assurance
B.The Project Manager
C.The external subcontractor's lead engineer
D.The Senior Supplier
AnswerD

The Senior Supplier represents supplier interests and is accountable for the quality and delivery of supplier products.

Why this answer

The Senior Supplier on the Project Board remains accountable for the supplier's performance and delivery, regardless of subcontracting layers.

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52
MCQhard

A project is implementing a major transformation. The Business Case includes projected benefits that extend three years beyond the project closure date. According to the Business Case practice, who is accountable for ensuring these post-project benefits are realized?

A.The Executive and Senior User
B.The Project Manager
C.Project Assurance
D.The Team Managers
AnswerA

Correct. The Executive and Senior User remain accountable for post-project benefit realization.

Why this answer

Post-project benefits realization is the responsibility of the Executive and Senior User, supported by corporate management, as the project management team dissolves at project closure.

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53
MCQeasy

In the PRINCE2 Plans practice, what is the primary purpose of a Project Plan?

A.To define individual product quality criteria.
B.To detail the daily tasks of team members for a single week.
C.To record identified project risks.
D.To provide a high-level schedule and cost baseline for the entire project lifecycle.
AnswerD

The Project Plan outlines total timescales, costs, and stages for the Project Board.

Why this answer

The Project Plan provides a high-level overview of the whole project's timescales, costs, and major products, serving as a baseline for the Project Board.

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54
MCQmedium

In organizing a PRINCE2 project, the Project Manager needs to ensure that supplier personnel adhere to the project's quality and sustainability standards. Where should these supplier responsibilities and governance requirements be formally established?

A.Project Product Description
B.Daily Log
C.Risk Register
D.Commercial agreements / contract tied into the Senior Supplier's mandate
AnswerD

Supplier obligations and standards are legally bound through commercial agreements and integrated via the Senior Supplier role.

Why this answer

Supplier responsibilities, deliverables, and quality criteria are contractually established and referenced in the project management team arrangements and supplier agreements.

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55
MCQmedium

A project risk has been identified regarding potential supply chain delays for sustainable materials. The Project Manager wants to assign ownership for investigating and monitoring this specific risk. Who should be assigned as the risk owner?

A.The person best suited to manage the risk
B.Corporate Risk Management
C.Always the Project Manager
D.The Executive exclusively
AnswerA

Correct. Risk owners are assigned based on who is best placed to manage the specific threat or opportunity.

Why this answer

A risk owner is the person best placed to manage the risk, including planning and implementing the risk response, regardless of their position in the core project team.

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56
MCQhard

A project is using an agile delivery method within a PRINCE2 governance framework. The Project Board wants to ensure that delivery increments are meeting quality standards before acceptance. Who is responsible for formally accepting completed products on behalf of the user community?

A.The Senior Supplier
B.The Project Manager
C.The Senior User
D.Corporate Management
AnswerC

Correct. The Senior User accepts products on behalf of the users.

Why this answer

The Senior User is responsible for specifying acceptance criteria and ultimately accepting the completed products on behalf of the user community.

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57
MCQeasy

In the PRINCE2 Quality practice, what is the purpose of establishing a Quality Register?

A.To list all identified threats and opportunities.
B.To maintain a chronological log of quality activities, tests, and results.
C.To record financial expenditures and cost variances.
D.To define the overall project organization structure.
AnswerB

The Quality Register records planned and completed quality activities and their outcomes.

Why this answer

The Quality Register provides a central record of all quality management activities, reviews, and test results.

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58
MCQhard

A PRINCE2 project is structured with multiple delivery teams operating under different Team Managers. One Team Manager consistently fails to provide Checkpoint Reports on time, blinding the Project Manager to potential schedule slippages. According to the Progress practice, what is the best governance remedy?

A.Escalate an issue to the Project Board regarding team-level reporting non-compliance and review team management arrangements.
B.Ignore the missing reports and prepare Highlight Reports based on guesswork.
C.Raise an Exception Report for the entire project.
D.Fire the Team Manager immediately without consulting anyone.
AnswerA

If team reporting failures threaten project visibility, the Project Manager must address it through management channels or escalate if necessary.

Why this answer

The Project Manager must address reporting compliance with the Team Manager and enforce project management controls as defined in the Project Management Team Structure and Team Plans.

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59
Multi-Selectmedium

Which TWO of the following statements correctly describe the responsibilities of the Executive within the PRINCE2 Business Case and Organizing practices?

Select 2 answers
A.The Executive is responsible for writing all individual Product Descriptions.
B.The Executive provides independent audit checks on behalf of corporate management.
C.The Executive manages the day-to-day creation of specialist products.
D.The Executive is ultimately accountable for the Business Case and its ongoing viability.
E.The Executive chairs the Project Board and has ultimate decision-making authority.
AnswersD, E

The Executive owns the Business Case and ensures the project remains desirable, viable, and achievable.

Why this answer

The Executive owns the Business Case, ensures ongoing viability, and chairs the Project Board.

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60
Multi-Selecthard

Which TWO of the following statements correctly describe the relationship between tolerances and reporting in the PRINCE2 Progress practice?

Select 2 answers
A.If stage tolerances are forecast to be breached, the Project Manager must raise an Exception Report.
B.Highlight Reports are used exclusively by Team Managers to report to the Project Manager.
C.Tolerances establish the boundaries of authority delegated by the Project Board to the Project Manager.
D.An Exception Plan is approved by the Project Manager without Project Board involvement.
E.Tolerances can only be set for time and cost, never for quality or scope.
AnswersA, C

Forecasted tolerance breaches trigger an Exception Report to the Project Board.

Why this answer

Tolerances define limits of authority, and forecasted breaches trigger Exception Reports.

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61
MCQeasy

In the Quality practice, who is responsible for approving the Quality Management Approach and setting overall quality expectations?

A.Corporate Quality Assurance
B.The Team Manager
C.The Project Manager
D.The Project Board
AnswerD

Correct. The Project Board approves the Quality Management Approach.

Why this answer

The Project Board is responsible for approving the Quality Management Approach and agreeing on customer quality expectations.

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62
MCQhard

During a quality review for a sustainable packaging prototype, the review team identifies that the material supplier's carbon footprint verification certificate is missing. According to the PRINCE2 Quality practice, what should happen to the product status?

A.Sign off the product conditionally, provided the supplier emails a promise within 30 days.
B.Raise an off-specification via the Issue and Change control practice.
C.Escalate immediately to Corporate, Programme Management or Portfolio Direction.
D.Record the result as 'fail' or incomplete in the Quality Register and require remedial action.
AnswerD

Missing quality criteria means the product has not passed quality control; it must be logged and reworked.

Why this answer

If a product fails a quality review or lacks mandatory quality criteria verification, it cannot be signed off and must be recorded as rejected or requiring rework in the Quality Register.

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63
MCQmedium

A project is implementing product-based planning. The Project Manager has created a Product Breakdown Structure. What is the next logical step in product-based planning?

A.Create the Schedule and Gantt chart immediately.
B.Write the detailed Product Descriptions for the identified products.
C.Estimate the duration and effort for each activity.
D.Establish work package tolerances.
AnswerB

Correct. After breaking down the products, the next step is writing their descriptions.

Why this answer

The steps in product-based planning are: 1) Write Project Product Description, 2) Create Product Breakdown Structure, 3) Write Product Descriptions, 4) Create Product Flow Diagram.

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64
MCQhard

A project introduces a risk where a new software tool might fail to comply with upcoming environmental electronic waste regulations (ESG integration). The Project Manager wants to apply a response that transfers the financial impact of this risk. Which response is best suited?

A.Accepting the risk and doing nothing.
B.Avoiding the risk by canceling the project entirely.
C.Mitigating the risk by redesigning the software.
D.Transferring the risk by negotiating a strict vendor penalty clause for non-compliance.
AnswerD

Correct. Transferring risk can involve contractual arrangements such as warranties or penalty clauses with suppliers.

Why this answer

Transferring a risk typically involves shifting the financial impact to a third party, such as purchasing insurance or negotiating a warranty/penalty clause with a supplier.

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65
MCQhard

A PRINCE2 project includes an environmental sustainability risk: excessive waste during manufacturing. The project team identifies an opportunity: partnering with a local recycling startup could turn this waste into a secondary revenue stream. Which risk response is most appropriate for this opportunity?

A.Exploit
B.Share
C.Enhance
D.Reject
AnswerA

Exploiting an opportunity means acting to ensure that the opportunity positively materializes with 100% certainty (e.g., formal partnership).

Why this answer

When handling opportunities (positive risks), seeking to eliminate uncertainty and ensure the opportunity happens is 'Exploit'.

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66
MCQmedium

A project manager is preparing a stage plan. To ensure that quality reviews are properly scheduled, what must be integrated into the schedule alongside technical task activities?

A.External auditor personal credentials
B.Quality review and testing activities
C.Operational staff annual leave records
D.Corporate shareholder meeting dates
AnswerB

Correct. Quality activities must be explicitly planned and scheduled.

Why this answer

Quality review activities, such as quality reviews and testing milestones, must be explicitly scheduled into plans to ensure verification takes place.

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67
MCQhard

An organization is executing a multi-year transformation project under PRINCE2 7. The corporate strategy shifts, placing a massive new emphasis on net-zero carbon targets. The Executive reviews the project's Business Case and realizes the project's outputs no longer align with the new strategic mandate, although the project is on time and under budget. What is the mandatory PRINCE2 action?

A.Ignore the corporate strategy shift until the project officially closes.
B.Transfer the project to the Senior Supplier to operate as commercial work.
C.Halt the project through premature closure because business justification no longer exists.
D.Continue the project because it is on time and under budget.
AnswerC

Projects must have continuous business justification; if alignment is lost and cannot be restored, the project should be stopped.

Why this answer

Under the principle of continued business justification, if a project is no longer aligned or viable, it must be stopped.

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68
MCQmedium

A PRINCE2 project is executing a stage. The Project Manager discovers that a supplier has delivered software that contains undocumented open-source components, violating corporate security and licensing standards. How should this be classified and handled?

A.Record as a risk in the Risk Register.
B.Log as a Request for Change to lower the corporate security standards.
C.Raise an Exception Report for the Project Board immediately.
D.Log as an off-specification in the Issue Register and require supplier remediation.
AnswerD

Failing to meet standards upon delivery is an off-specification requiring corrective action.

Why this answer

Delivered products that fail to meet specifications or standards are logged as off-specifications in the Issue Register.

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69
MCQeasy

Under the PRINCE2 Organizing practice, which role represents the interests of those who will use the project's outputs, operate the resulting solution, or realize the benefits?

A.Senior User
B.Project Assurance
C.Senior Supplier
D.Executive
AnswerA

The Senior User specifies user requirements and monitors for benefit realization.

Why this answer

The Senior User role represents the interests of those who will use the project's outputs or realize benefits.

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70
MCQmedium

A PRINCE2 project is executing a stage. The Project Manager wants to establish how frequently Highlight Reports will be submitted to the Project Board. Where should this reporting frequency be formally defined?

A.Risk Register
B.Stage Plan
C.Communication Management Approach
D.Project Product Description
AnswerC

The Communication Management Approach defines who, what, when, and how information is communicated to stakeholders.

Why this answer

The frequency and format of communication between the project manager and the Project Board are defined in the Communication Management Approach.

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71
Multi-Selectmedium

Which TWO of the following describe valid aspects of the Issues practice in PRINCE2 7? (Choose two)

Select 2 answers
A.Team Managers have the authority to increase project stage cost tolerances.
B.The Issue Register is maintained by Corporate Management outside the project.
C.Issues must be resolved exclusively by the Executive without team input.
D.Issues can be categorized as Requests for Change, Off-specifications, or Problems/Concerns.
E.All formal issues must be captured and logged in the Issue Register.
AnswersD, E

Correct. These are the three official issue categories in PRINCE2.

Why this answer

Issues include requests for change, off-specifications, and problems/concerns. They are logged in the Issue Register. Team managers do not approve project tolerances.

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72
MCQhard

A PRINCE2 project is operating with decentralized agile delivery teams. An issue arises where two teams have conflicting dependencies on a shared database component, threatening the stage schedule. The Team Managers cannot resolve it between themselves. What is the correct escalation path under PRINCE2?

A.Escalate the issue to the Project Manager for logging and resolution.
B.Escalate directly to Corporate, Programme Management or Portfolio Direction.
C.Raise an Exception Report to the Project Board immediately.
D.Ignore the conflict and let the teams figure it out to preserve agile self-organization.
AnswerA

Team Managers escalate unresolvable issues to the Project Manager.

Why this answer

When team-level issues exceed Team Manager authority or resolution capability, they must be escalated to the Project Manager, who logs them in the Issue Register.

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73
Multi-Selecthard

When implementing the Risk practice in a PRINCE2 7 project, which THREE of the following steps are part of the risk management procedure? (Choose three)

Select 3 answers
A.Depreciate (writing off risk assets over time)
B.Identify (context and risks)
C.Liquidate (closing supplier contracts automatically)
D.Plan (selecting and planning risk responses)
E.Assess (estimating probability and impact)
AnswersB, D, E

Correct. Identifying context and risks is the first step of the procedure.

Why this answer

The PRINCE2 risk management procedure consists of: Identify, Assess, Plan, Implement, and Communicate. (Options A, B, and E represent valid steps in this procedure).

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74
Multi-Selecteasy

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

Select 2 answers
A.Project Plan
B.End Project Report
C.Checkpoint Report
D.Project Initiation Documentation (PID)
E.Exception Report
AnswersA, D

The Project Plan provides the high-level timescale and cost baseline.

Why this answer

The Project Initiation Documentation (PID) and the Project Plan are core management products established during initiation.

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75
Multi-Selecthard

Which THREE of the following management products are part of the PRINCE2 Quality practice framework?

Select 3 answers
A.Quality Register
B.Product Description
C.Issue Register
D.Risk Register
E.Quality Management Approach
AnswersA, B, E

The Quality Register records planned and actual quality review results.

Why this answer

Quality Management Approach, Quality Register, and Product Descriptions are core quality management products.

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