Overview of PRINCE2 and Principles →mediumMultiple Choice

PRINCE2F Overview of PRINCE2 and Principles Practice Question

A programme manager has been asked to set up a new project to develop a mobile banking application. The organization has a standard project management framework, but the programme manager wants to ensure the project follows PRINCE2 principles. Which action best demonstrates the 'continued business justification' principle?

⚠ Common exam trap

It's easy for candidates to confuse ongoing project management activities such as risk tracking or planning with the specific requirement to review and confirm the business justification at decision points.

Answer choices

Why each option matters

Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.

Correct answer & explanation

✓

Ensuring the project board reviews the business case at each stage boundary.

The correct answer is the action that ensures the business case is reviewed at stage boundaries. Continued business justification means the project must remain desirable, viable, and achievable throughout its life. Regular reviews by the project board at key points allow for informed decisions to continue, change, or stop the project. Other actions, while useful, do not directly fulfill this principle.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

✗
Creating a detailed project plan that covers all stages from initiation to closure.
Why it's wrong here
This action focuses on planning rather than ongoing justification. While planning is important, it does not by itself ensure that the business justification remains valid throughout the project. A detailed plan may become outdated if the business environment changes, and without regular review, the project could continue even when it is no longer viable.
✗
Documenting all project risks in a risk register and updating it weekly.
Why it's wrong here
Risk management is a supporting practice, but it is not the same as continued business justification. While risks can affect the business case, simply documenting them does not ensure that the project's justification is reviewed and confirmed. The principle requires active evaluation of whether the project should continue, not just risk tracking.
✗
Assigning a dedicated project manager to oversee daily activities.
Why it's wrong here
Assigning a project manager is a structural decision that supports management but does not directly demonstrate continued business justification. The principle is about maintaining the viability of the project, not about specific roles. The project manager's presence alone does not guarantee that the business case is revisited or that the project remains aligned with strategic goals.
✓
Ensuring the project board reviews the business case at each stage boundary.
Why this is correct
This is correct because continued business justification requires that the business case is reviewed and updated at key decision points, such as stage boundaries. This ensures the project remains aligned with strategic objectives and that benefits are still expected to outweigh costs and risks. Regular review allows the project board to decide whether to continue, change, or stop the project based on current information.

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PRINCE2F Overview of PRINCE2 and Principles Practice Question

Why each option matters

Option-by-option breakdown

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