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PRINCE2F Project Initiation and Stages Practice Question

A project is in the Initiation Stage. The project manager has drafted the Project Initiation Documentation (PID) and needs the project board to authorize the project before the first delivery stage begins. Which PRINCE2 activity must be performed, and who holds the authority to approve the PID?

⚠ Common exam trap

The trap here is assuming the project manager can approve the PID because they created it, when in PRINCE2 approval authority belongs to the project board.

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

✓

Directing a Project — the project board authorizes the project after confirming the PID is viable.

The project board is responsible for authorizing the project, which happens within the Directing a Project process after the PID is complete. The project manager produces the PID during Initiating a Project but cannot approve it. Managing a Stage Boundary and Starting up a Project serve different purposes, so they do not fit this authorization step.

Answer analysis

Option-by-option breakdown

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

  • ✓

    Directing a Project — the project board authorizes the project after confirming the PID is viable.

    Why this is correct

    Directing a Project is the process where the project board makes key decisions, including authorizing the project once the PID is complete. The board reviews the PID, ensures the Business Case is viable, and gives approval to proceed to the next stage. This is the correct authority because the board owns the project's direction, not the project manager.

  • ✗

    Initiating a Project — the project manager authorizes the project after the PID is baselined.

    Why it's wrong here

    Initiating a Project is the process that produces the PID, but it does not include authorizing the project. The project manager assembles the PID and seeks approval; they do not grant it. Authorization is a board decision made in Directing a Project, so this option misplaces the approval authority.

  • ✗

    Managing a Stage Boundary — the project board approves the PID at the end of the Initiation Stage.

    Why it's wrong here

    Managing a Stage Boundary is used at the end of each delivery stage to prepare for the next, not to approve the PID. The PID approval occurs at the end of the Initiation Stage but is performed through Directing a Project. This option incorrectly assigns the approval activity to a stage-boundary process.

  • ✗

    Starting up a Project — the project manager approves the PID and informs the board.

    Why it's wrong here

    Starting up a Project occurs before the Initiation Stage and focuses on producing the Project Brief. It does not involve approving the PID. The project manager cannot self-approve the PID because the board holds that authority. This option confuses the pre-project process with the initiation decision point.

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Last reviewed September 2026 · checked against the official PeopleCert exam blueprint

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