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PRINCE2F Overview of PRINCE2 and Principles Practice Question

A project manager is reviewing the business case for a new software development project. The project is expected to generate significant revenue, but the initial investment is high. According to PRINCE2, which principle is MOST directly being applied when the project manager ensures that the business case remains viable throughout the project?

⚠ Common exam trap

PeopleCert often tests the distinction between 'Continued Business Justification' and 'Manage by Stages,' where candidates mistakenly think stage boundaries are for business case review, but the principle itself is about ongoing viability, not the mechanism of stage management.

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

✓

Continued business justification

The PRINCE2 principle of Continued Business Justification requires that the business case, which documents the project's justification, is reviewed and updated at key decision points (e.g., stage boundaries) to ensure the project remains viable. In this scenario, the project manager is actively verifying that the high initial investment is still justified by the expected revenue, directly applying this principle to avoid proceeding with an unviable project.

Answer analysis

Option-by-option breakdown

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

  • ✗

    Manage by stages

    Why it's wrong here

    Manage by stages concerns dividing the project into controllable stages with decision points, not continuously validating the business case. It is tempting because stage boundaries include business case reviews, but the principle directly governing ongoing viability is continued business justification.

  • ✗

    Learn from experience

    Why it's wrong here

    Learning from experience concerns capturing and applying lessons from previous projects and throughout the lifecycle; it does not govern whether the investment remains justified. It is tempting because lessons are reviewed at each stage boundary, but the stem describes assessing continued viability, which is the continued business justification principle.

  • ✓

    Continued business justification

    Why this is correct

    Continued business justification requires the business case to remain valid and viable throughout the project, not merely at initiation. Reviewing revenue against investment continuously applies that principle directly, satisfying the stem's condition that viability is maintained.

  • ✗

    Tailor to suit the project environment

    Why it's wrong here

    Tailoring concerns adapting PRINCE2's themes, processes and roles to the project's scale, complexity and environment; it says nothing about reviewing continued viability. It is tempting because tailoring is a genuine PRINCE2 principle applied at initiation, but the stem's ongoing viability review maps to the continued business justification principle.

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Written by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

This PRINCE2F practice question is part of Courseiva's free PeopleCert certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the PRINCE2F exam.