Scenario practice questions

A Project Board delegates day-to-day control of a project stage to the Project Manager, stepping in only when agreed limits for cost and time are forecast to be exceeded. Which PRINCE2 principle does this governance model represent?

Trap 1: Defined roles and responsibilities

Defined roles and responsibilities describes who is accountable for what, not the tolerance-based delegation of authority. It tempts because the Board and Project Manager roles are named, but the principle governing management by exception within agreed tolerances is manage by exception.

Trap 2: Tailor to suit the project

Tailoring concerns adapting PRINCE2's themes, processes and roles to the project's scale, environment and complexity; it does not describe delegated tolerance-based control. It would be the right principle when justifying why documentation, stage structure or role allocation is scaled down for a small project.

Trap 3: Manage by stages

Manage by Stages divides the project into manageable chunks with decision points, but the stem's defining feature is the Project Board setting tolerances and delegating within them, which is Manage by Exception. Manage by Stages would be correct if the question asked how the project is broken into reviewable sections.

A
Defined roles and responsibilities
Why it fails: Defined roles and responsibilities describes who is accountable for what, not the tolerance-based delegation of authority. It tempts because the Board and Project Manager roles are named, but the principle governing management by exception within agreed tolerances is manage by exception.
B
Tailor to suit the project
Why it fails: Tailoring concerns adapting PRINCE2's themes, processes and roles to the project's scale, environment and complexity; it does not describe delegated tolerance-based control. It would be the right principle when justifying why documentation, stage structure or role allocation is scaled down for a small project.
C
Manage by exception
Manage by exception defines tolerances for cost and time, within which the Project Manager runs the stage without Board intervention; escalation occurs only when a forecast breach is imminent. This matches the stem's delegated day-to-day control with agreed limits, satisfying the principle's requirement for pre-defined boundaries and defined escalation points.
D
Manage by stages
Why it fails: Manage by Stages divides the project into manageable chunks with decision points, but the stem's defining feature is the Project Board setting tolerances and delegating within them, which is Manage by Exception. Manage by Stages would be correct if the question asked how the project is broken into reviewable sections.

Question 2easymultiple choice

In a large infrastructure project, the Project Board includes a representative from the user community, a representative of senior supplier interests, and an Executive representing business interests. Which PRINCE2 principle is being implemented?

Trap 1: Tailor to suit the project

Tailor to suit the project concerns scaling PRINCE2's processes, themes and documentation to the project's size, complexity and risk. A Project Board containing business, user and supplier interests demonstrates the Defined Roles and Responsibilities principle. It is tempting because large infrastructure projects do require tailoring, but the stem describes role representation.

Trap 2: Manage by exception

Manage by exception defines tolerances delegated to each management level, so the Board escalates only beyond agreed limits. The stem describes three stakeholder interests represented on the Board, which implements the defined roles and responsibilities principle, not delegation of authority boundaries.

Trap 3: Continued business justification

Continued business justification requires a viable Business Case maintained throughout the project. The stem instead evidences the three primary stakeholder interests sitting on the Project Board, which demonstrates the defined roles and responsibilities principle covering business, user and supplier representation.

A
Defined roles and responsibilities
The Project Board's three stakeholder perspectives — business, user and supplier — map directly onto PRINCE2's defined roles and responsibilities principle, which requires each stakeholder interest to be represented in the project management team structure.
B
Tailor to suit the project
Why it fails: Tailor to suit the project concerns scaling PRINCE2's processes, themes and documentation to the project's size, complexity and risk. A Project Board containing business, user and supplier interests demonstrates the Defined Roles and Responsibilities principle. It is tempting because large infrastructure projects do require tailoring, but the stem describes role representation.
C
Manage by exception
Why it fails: Manage by exception defines tolerances delegated to each management level, so the Board escalates only beyond agreed limits. The stem describes three stakeholder interests represented on the Board, which implements the defined roles and responsibilities principle, not delegation of authority boundaries.
D
Continued business justification
Why it fails: Continued business justification requires a viable Business Case maintained throughout the project. The stem instead evidences the three primary stakeholder interests sitting on the Project Board, which demonstrates the defined roles and responsibilities principle covering business, user and supplier representation.

Question 3hardmultiple choice

A project is currently in the Directing a Project (DP) process. An issue has arisen that exceeds the Project Manager's delegated stage tolerance, and the Project Manager has submitted an Exception Report. The Project Board wants to review the options and authorize an alternative way forward without prematurely closing the project. Which DP activity should the Project Board perform?

Trap 1: Initiating a project.

Initiating a Project produces the Project Initiation Documentation and is performed once, before the first stage, not in response to an Exception Report. It tempts because it establishes the project's baselines and tolerances, but the Board here must 'Authorise a Stage or Exception Plan' to approve the alternative way forward.

Trap 2: Authorizing project closure.

Authorising project closure confirms acceptance of the project's products and releases resources, ending the project; the stem explicitly requires continuing rather than prematurely closing. It tempts because an unresolved exception can lead to closure, but the Board must instead 'Authorise a Stage or Exception Plan' to approve the Exception Plan.

Trap 3: Capturing and sharing lessons.

Capturing and sharing lessons is a continual activity logged in the Lessons Log, not a decision-making DP activity that reviews options and approves a way forward. It tempts because lessons inform the Exception Plan, but the Board must 'Authorise a Stage or Exception Plan' to authorise the alternative approach.

A
Authorizing a stage or Exception Plan.
Authorising an Exception Plan lets the Project Board respond to a breach of stage tolerance without triggering premature closure. The Exception Report triggers this activity, where the Board reviews options and approves an alternative way forward, preserving the project while restoring control against the exceeded tolerance.
B
Initiating a project.
Why it fails: Initiating a Project produces the Project Initiation Documentation and is performed once, before the first stage, not in response to an Exception Report. It tempts because it establishes the project's baselines and tolerances, but the Board here must 'Authorise a Stage or Exception Plan' to approve the alternative way forward.
C
Authorizing project closure.
Why it fails: Authorising project closure confirms acceptance of the project's products and releases resources, ending the project; the stem explicitly requires continuing rather than prematurely closing. It tempts because an unresolved exception can lead to closure, but the Board must instead 'Authorise a Stage or Exception Plan' to approve the Exception Plan.
D
Capturing and sharing lessons.
Why it fails: Capturing and sharing lessons is a continual activity logged in the Lessons Log, not a decision-making DP activity that reviews options and approves a way forward. It tempts because lessons inform the Exception Plan, but the Board must 'Authorise a Stage or Exception Plan' to authorise the alternative approach.

Question 4easymultiple choice

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?

Trap 1: Continued business justification

Continued business justification concerns the ongoing viability of the business case throughout the project, not capturing lessons for reuse. It is tempting because closing a project does involve confirming benefits, and this principle would be the answer if the report justified whether the project should still proceed.

Trap 2: Tailor to suit the project

Tailoring concerns adapting PRINCE2 to the project's scale, environment and risk, not recording lessons learned for other projects. It is tempting because lessons reports are often tailored documents, and this principle would be correct if the question asked how the method itself was adapted to fit the project.

Trap 3: Focus on products

Focus on products concerns defining and agreeing product descriptions and quality criteria, not capturing lessons for reuse. It is tempting because both involve documentation, but the report here records what went well and poorly, which is the learn from experience principle's lessons log activity.

A
Continued business justification
Why it fails: Continued business justification concerns the ongoing viability of the business case throughout the project, not capturing lessons for reuse. It is tempting because closing a project does involve confirming benefits, and this principle would be the answer if the report justified whether the project should still proceed.
B
Tailor to suit the project
Why it fails: Tailoring concerns adapting PRINCE2 to the project's scale, environment and risk, not recording lessons learned for other projects. It is tempting because lessons reports are often tailored documents, and this principle would be correct if the question asked how the method itself was adapted to fit the project.
C
Learn from experience
Capturing lessons on what went well and poorly, then storing them in the corporate repository, ensures future projects benefit from this experience. That directly fulfils the Learn from experience principle, which requires lessons to be recorded and shared throughout and after the project.
D
Focus on products
Why it fails: Focus on products concerns defining and agreeing product descriptions and quality criteria, not capturing lessons for reuse. It is tempting because both involve documentation, but the report here records what went well and poorly, which is the learn from experience principle's lessons log activity.

Question 5easymultiple choice

A software development project is divided into distinct planning increments of three months each, at the end of which the Project Board reviews progress and decides whether to authorize the next increment. Which PRINCE2 principle is being applied?

Trap 1: Focus on products

Focus on products concerns defining and agreeing product descriptions and quality criteria before work begins, not dividing delivery into authorisation increments. Managing by stages covers stage boundaries and Board authorisation. It is tempting because increments deliver products, but the stem describes staged governance, not product definition.

Trap 2: Manage by exception

Manage by exception concerns tolerances delegated to the Project Manager and escalation when they are forecast to be breached, not the Board authorising each stage. Managing by stages requires the Board to approve the next Stage Plan. It is tempting because both involve Board decisions at boundaries.

Trap 3: Tailor to suit the project

Tailoring concerns adapting PRINCE2 to the project's scale, environment and complexity; it does not itself mandate stage boundaries or Board authorisation. Managing by stages requires dividing work into stages with Board decisions at each boundary. It is tempting because three-month increments look like tailoring, but the stem describes staged control.

A
Focus on products
Why it fails: Focus on products concerns defining and agreeing product descriptions and quality criteria before work begins, not dividing delivery into authorisation increments. Managing by stages covers stage boundaries and Board authorisation. It is tempting because increments deliver products, but the stem describes staged governance, not product definition.
B
Manage by exception
Why it fails: Manage by exception concerns tolerances delegated to the Project Manager and escalation when they are forecast to be breached, not the Board authorising each stage. Managing by stages requires the Board to approve the next Stage Plan. It is tempting because both involve Board decisions at boundaries.
C
Manage by stages
Dividing the project into three-month increments, each ending in a Project Board review and authorisation decision, directly instantiates the manage by stages principle. It requires defined stages with decision points where the Board controls continuation, satisfying the stem's constraint of incremental planning and explicit authorisation before the next increment begins.
D
Tailor to suit the project
Why it fails: Tailoring concerns adapting PRINCE2 to the project's scale, environment and complexity; it does not itself mandate stage boundaries or Board authorisation. Managing by stages requires dividing work into stages with Board decisions at each boundary. It is tempting because three-month increments look like tailoring, but the stem describes staged control.

Question 6mediummultiple choice

During a project audit, it is discovered that team members are unsure who has the authority to approve design changes because the Project Management Team structure was never formally documented. Which PRINCE2 principle has been violated?

Trap 1: Focus on products

Focus on products concerns defining and agreeing product descriptions and quality criteria. The stem's undocumented team structure and unclear approval authority relate to defined roles and responsibilities, which requires an explicit organisation structure with accountable roles.

Trap 2: Tailor to suit the project

Tailoring concerns adapting PRINCE2's themes and processes to the project's scale, complexity and environment; it does not address undefined roles. The stem's failure is that authority for approving design changes was never assigned or documented, which breaches Defined Roles and Responsibilities. Tailoring would be correct when scaling governance artefacts, not when accountability is missing.

Trap 3: Manage by exception

Manage by exception sets tolerances so higher management intervenes only when they are forecast to be breached. The stem concerns undefined roles and approval authority, which violates defined roles and responsibilities rather than any tolerance-setting mechanism.

A
Defined roles and responsibilities
Undocumented authority stems from failing to define who is accountable for what, which is precisely what the defined roles and responsibilities principle requires. It mandates that every member of the Project Management Team has a documented role, so approval authority for design changes is unambiguous rather than assumed.
B
Focus on products
Why it fails: Focus on products concerns defining and agreeing product descriptions and quality criteria. The stem's undocumented team structure and unclear approval authority relate to defined roles and responsibilities, which requires an explicit organisation structure with accountable roles.
C
Tailor to suit the project
Why it fails: Tailoring concerns adapting PRINCE2's themes and processes to the project's scale, complexity and environment; it does not address undefined roles. The stem's failure is that authority for approving design changes was never assigned or documented, which breaches Defined Roles and Responsibilities. Tailoring would be correct when scaling governance artefacts, not when accountability is missing.
D
Manage by exception
Why it fails: Manage by exception sets tolerances so higher management intervenes only when they are forecast to be breached. The stem concerns undefined roles and approval authority, which violates defined roles and responsibilities rather than any tolerance-setting mechanism.

Question 7hardmultiple choice

An organization is executing a software development project where user requirements change rapidly. The Project Manager ensures that every delivered software increment has a clear Product Description outlining its acceptance criteria before development starts. Which PRINCE2 principle is being rigorously applied?

Trap 1: Continued business justification

Continued business justification requires a valid Business Case throughout, not per-increment acceptance criteria. It is tempting because justification underpins all projects, but defining Product Descriptions with acceptance criteria before development reflects the defined roles and responsibilities principle, or manage by stages.

Trap 2: Manage by stages

Managing by stages concerns dividing the project into manageable chunks with end stage assessments, not defining acceptance criteria per increment. It tempts because staged delivery suits rapidly changing requirements, but the described behaviour is defining products and their quality criteria, which is the focus on products principle.

Trap 3: Tailor to suit the project

Tailoring concerns adapting PRINCE2 to the project's scale, environment and complexity; it does not require a Product Description with acceptance criteria before each increment. It tempts because agile, changing requirements demand tailoring, but the stem describes applying the focus on products principle, not adapting the method.

A
Continued business justification
Why it fails: Continued business justification requires a valid Business Case throughout, not per-increment acceptance criteria. It is tempting because justification underpins all projects, but defining Product Descriptions with acceptance criteria before development reflects the defined roles and responsibilities principle, or manage by stages.
B
Manage by stages
Why it fails: Managing by stages concerns dividing the project into manageable chunks with end stage assessments, not defining acceptance criteria per increment. It tempts because staged delivery suits rapidly changing requirements, but the described behaviour is defining products and their quality criteria, which is the focus on products principle.
C
Focus on products
Focus on products requires defining each product's purpose, composition and quality criteria, here via Product Descriptions with acceptance criteria, before work begins. This satisfies the stem's constraint of rapidly changing requirements by basing development on agreed product definitions rather than shifting specifications.
D
Tailor to suit the project
Why it fails: Tailoring concerns adapting PRINCE2 to the project's scale, environment and complexity; it does not require a Product Description with acceptance criteria before each increment. It tempts because agile, changing requirements demand tailoring, but the stem describes applying the focus on products principle, not adapting the method.

Question 8easymultiple choice

A Project Manager is leading a project to develop a new mobile application. The project board has defined tolerances for time, cost, and scope. During a stage, the Project Manager discovers that the actual cost is forecast to exceed the stage cost tolerance by 10%. According to the PRINCE2 principle 'Manage by exception', what should the Project Manager do?

Trap 1: Request additional funds from the finance department without…

The project board is the authority that sets tolerances and approves changes beyond them. Bypassing the project board and requesting funds directly from finance undermines the governance structure and violates the principle 'Manage by exception', which defines clear escalation paths.

Trap 2: Take corrective action to bring the cost back within tolerance and…

While taking corrective action is good, the principle 'Manage by exception' mandates that if a tolerance is forecast to be exceeded, the Project Manager must escalate to the project board. Continuing without informing the board would violate the principle, as the board has set the tolerance and must be involved when it is breached.

Trap 3: Do nothing until the end of the stage, then report the overspend in…

Waiting until the end of the stage to report a forecast breach of tolerance contradicts 'Manage by exception', which requires timely escalation as soon as a breach is forecast. Delaying the escalation could allow the situation to worsen and denies the project board the opportunity to make informed decisions.

A
Request additional funds from the finance department without involving the project board.
Why it fails: The project board is the authority that sets tolerances and approves changes beyond them. Bypassing the project board and requesting funds directly from finance undermines the governance structure and violates the principle 'Manage by exception', which defines clear escalation paths.
B
Take corrective action to bring the cost back within tolerance and continue without informing the project board.
Why it fails: While taking corrective action is good, the principle 'Manage by exception' mandates that if a tolerance is forecast to be exceeded, the Project Manager must escalate to the project board. Continuing without informing the board would violate the principle, as the board has set the tolerance and must be involved when it is breached.
C
Immediately escalate the issue to the project board by producing an Exception Report.
This is correct because the principle 'Manage by exception' requires that the Project Manager only escalates to the project board when a tolerance is forecast to be exceeded. Since the cost forecast exceeds the stage tolerance, the Project Manager must raise an Exception Report to inform the project board and seek a decision on how to proceed.
D
Do nothing until the end of the stage, then report the overspend in the End Stage Report.
Why it fails: Waiting until the end of the stage to report a forecast breach of tolerance contradicts 'Manage by exception', which requires timely escalation as soon as a breach is forecast. Delaying the escalation could allow the situation to worsen and denies the project board the opportunity to make informed decisions.

Question 9mediummultiple choice

A project is using PRINCE2 to deliver a new healthcare information system. The Project Manager is reviewing the project's progress and notices that the project's business case has not been updated since the project was initiated six months ago. During this time, the regulatory environment has changed, and the expected benefits are now less certain. Which PRINCE2 principle is being violated?

Trap 1: Learn from experience

The principle 'Learn from experience' focuses on using lessons from previous projects to inform the current one. The scenario does not indicate that lessons have been ignored; rather, it highlights that the business case has not been updated in response to external changes, which is a matter of business justification.

Trap 2: Manage by stages

The principle 'Manage by stages' is about dividing the project into manageable stages and making decisions at stage boundaries. While the business case should be reviewed at stage boundaries, the core issue here is the lack of ongoing justification, which is specifically addressed by 'Continued business justification'.

Trap 3: Focus on products

The principle 'Focus on products' emphasizes defining and delivering products that meet quality criteria. The scenario does not mention product definition or quality issues; it concerns the validity of the business case, so this principle is not the one being violated.

A
Learn from experience
Why it fails: The principle 'Learn from experience' focuses on using lessons from previous projects to inform the current one. The scenario does not indicate that lessons have been ignored; rather, it highlights that the business case has not been updated in response to external changes, which is a matter of business justification.
B
Manage by stages
Why it fails: The principle 'Manage by stages' is about dividing the project into manageable stages and making decisions at stage boundaries. While the business case should be reviewed at stage boundaries, the core issue here is the lack of ongoing justification, which is specifically addressed by 'Continued business justification'.
C
Continued business justification
This is correct because the principle 'Continued business justification' requires that the business case is reviewed and updated throughout the project to ensure that the project remains viable and aligned with the business objectives. Failing to update the business case despite significant changes in the regulatory environment violates this principle.
D
Focus on products
Why it fails: The principle 'Focus on products' emphasizes defining and delivering products that meet quality criteria. The scenario does not mention product definition or quality issues; it concerns the validity of the business case, so this principle is not the one being violated.