PRINCE2 Foundation (PRINCE2F) — Questions 175

1731 questions total · 24pages · All types, answers revealed

Page 1 of 24

Page 2
1
Multi-Selectmedium

Which TWO statements about the PRINCE2 practice 'Organizing' are correct?

Select 2 answers
A.The project manager reports to the project board through the senior user.
B.The project management team structure defines the roles and responsibilities within the project.
C.The project board consists of four roles: executive, senior user, senior supplier, and project manager.
D.Project assurance is a role within project support.
E.The project board is accountable to the corporate or programme management for the success of the project.
AnswersB, E

Correct as per PRINCE2.

Why this answer

Option B is correct because the PRINCE2 'Organizing' practice defines the project management team structure, which establishes clear roles and responsibilities for all team members. This structure ensures accountability and effective communication throughout the project lifecycle.

Exam trap

The trap here is confusing the project board composition (three roles) with the full management team (which includes the project manager), leading candidates to incorrectly select option C.

2
MCQhard

Which statement best describes the difference between Starting Up a Project (SU) and Initiating a Project (IP)?

A.SU produces the Stage Plan for the initiation stage, while IP produces the Project Plan
B.SU is performed by the Project Board, while IP is performed by the Project Manager
C.SU selects the project mandate, while IP develops the project brief
D.SU appoints the Project Board and Project Manager, while IP develops the PID
AnswerD

SU appoints key roles and creates the Project Brief; IP creates the PID and detailed plans.

Why this answer

SU is a pre-project process to determine if there is a viable project, while IP formally establishes the project foundation with detailed planning and management strategies.

3
MCQmedium

Which document is the key output of the Initiating a Project process?

A.Project Brief
B.Business Case
C.Project Initiation Documentation
D.Project Plan
AnswerC

The PID is the key output of Initiating a Project.

Why this answer

The Project Initiation Documentation (PID) is the key output of the Initiating a Project process, providing the foundation for the project.

4
MCQmedium

Which process includes the activity 'Review the project's progress against the stage plan'?

A.Directing a Project
B.Managing a Stage Boundary
C.Managing Product Delivery
D.Controlling a Stage
AnswerD

Controlling a Stage includes monitoring progress and taking corrective action.

Why this answer

Reviewing progress against the stage plan is a key activity within Controlling a Stage, where the PM monitors and controls work.

5
Multi-Selectmedium

Which TWO of the following are outputs of the Starting Up a Project process?

Select 2 answers
A.Project Brief
B.Risk Register
C.Benefits Management Approach
D.Daily Log
E.Project Initiation Documentation (PID)
AnswersA, D

The Project Brief is created in SU.

Why this answer

SU outputs include the Project Brief, initiation Stage Plan, Daily Log, and appointment of the Executive and PM. The PID and Risk Register are outputs from IP.

6
MCQmedium

A project manager is assigned to a project where the executive is often unavailable. Which role can act as a substitute for the executive when making business case decisions?

A.No role can substitute; the project should be escalated to the project board
B.Senior User
C.Senior Supplier
D.Project Assurance
AnswerA

Correct: decisions requiring executive input must be escalated.

Why this answer

In PRINCE2, the Executive is the single point of accountability for the business case and must approve any changes to it. If the Executive is unavailable, no other role can substitute for this authority; the project manager must escalate the decision to the full Project Board. This ensures that business justification decisions are never made without the accountable party or the collective board.

Exam trap

The trap here is that candidates often assume the Senior User or Senior Supplier can step in for the Executive because they are also board members, but PRINCE2 explicitly reserves business case authority for the Executive alone, and no substitute is permitted.

How to eliminate wrong answers

Option B is wrong because the Senior User represents the users' interests and is responsible for specifying requirements and benefits, but they do not have authority over the business case or its financial justification. Option C is wrong because the Senior Supplier represents the supplier's interests and is responsible for the technical integrity of deliverables, not for business case decisions. Option D is wrong because Project Assurance is an independent monitoring role that checks compliance and provides guidance, but it has no decision-making authority over the business case.

7
MCQeasy

In PRINCE2, who is responsible for day-to-day management of the project within tolerances?

A.Team Manager
B.Project Manager
C.Project Support
D.Senior Responsible Owner
AnswerB

The PM has delegated authority for day-to-day management.

Why this answer

The Project Manager manages the project on a day-to-day basis within the tolerances set by the Project Board.

8
MCQmedium

Refer to the exhibit. The project board is reviewing the End Stage Report for Stage 2 and the Stage Plan for Stage 3. The Stage Plan for Stage 3 exceeds the agreed cost tolerance. According to PRINCE2, what should the project board do?

A.Approve the Stage Plan as it is, since Stage 2 was completed within tolerance
B.Reject the Stage Plan and ask the project manager to terminate the project
C.Ask the project manager to produce an Exception Plan for Stage 3
D.Lower the cost tolerance for Stage 3 to match the plan
AnswerC

An Exception Plan is the correct response when a stage plan exceeds tolerance.

Why this answer

According to PRINCE2, when a Stage Plan exceeds the agreed cost tolerance, the project board cannot approve it. Instead, the project manager must produce an Exception Plan that describes the options to bring the stage back within tolerance or to request a revised tolerance. This is a formal exception management process defined in the PRINCE2 manual.

Exam trap

The trap here is that candidates often think the project board can simply approve a plan that exceeds tolerance if previous stages were under budget, but PRINCE2 strictly requires an Exception Plan for any stage plan outside tolerance, regardless of prior performance.

How to eliminate wrong answers

Option A is wrong because approving a Stage Plan that exceeds tolerance violates the principle of management by exception; the board must not approve plans outside agreed tolerances. Option B is wrong because the project board should not terminate the project immediately; they must first consider an Exception Plan, which may propose corrective actions or a revised business case. Option D is wrong because lowering the tolerance to match the plan is not a valid PRINCE2 action; tolerances are set at the start and can only be changed through the exception process, not unilaterally reduced by the board.

9
MCQeasy

What is the purpose of the Product Description in the Quality practice?

A.To record issues related to a product
B.To define the quality criteria and acceptance methods for a product
C.To assign resources to a product
D.To list all activities required to produce a product
AnswerB

Correct.

Why this answer

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

10
MCQhard

In PRINCE2, what is the difference between a Risk Owner and a Risk Actionee?

A.The Risk Owner is responsible for managing the risk and implementing the response, while the Risk Actionee performs specific actions assigned by the Risk Owner.
B.The Risk Owner is appointed during the 'Identify' step, while the Risk Actionee is appointed during the 'Implement' step.
C.The Risk Owner is responsible for identifying risks, while the Risk Actionee is responsible for assessing them.
D.The Risk Owner reports to the Risk Actionee on the status of the risk.
AnswerA

This correctly distinguishes the two roles.

Why this answer

Option B is correct. The Risk Owner is responsible for managing the risk and implementing the response, while the Risk Actionee performs specific actions assigned by the Risk Owner. Option A is incorrect because roles are not interchangeable.

Option C is incorrect because the Risk Owner does not report to the Risk Actionee. Option D is incorrect because both roles are established during the 'Plan' step.

11
MCQmedium

In which process does the Project Manager produce an Exception Plan?

A.Initiating a Project
B.Controlling a Stage
C.Managing a Stage Boundary
D.Directing a Project
AnswerC

Managing a Stage Boundary is where the Project Manager produces an Exception Plan to replace the current stage plan.

Why this answer

When a stage tolerance is forecast to be exceeded, the Project Manager raises an Exception Report and then, if directed by the Project Board, produces an Exception Plan during Managing a Stage Boundary.

12
MCQhard

A project is using the recommended risk management procedure. After identifying a risk, what is the next step?

A.Plan
B.Communicate
C.Assess
D.Implement
AnswerC

Assessment is the second step, following identification.

Why this answer

The PRINCE2 risk management procedure steps are: Identify, Assess, Plan, Implement, Communicate. After identification, the next step is to assess the risk (probability and impact).

13
MCQeasy

Which document is used by the Project Manager to report progress to the Project Board on a regular basis during a stage?

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

This report is sent regularly from the Project Manager to the Project Board.

Why this answer

The Highlight Report is a time-driven report from the Project Manager to the Project Board, providing a summary of progress during a stage.

14
MCQmedium

Which principle ensures that a project remains viable?

A.Manage by Stages
B.Learn from Experience
C.Continued Business Justification
D.Tailor to Suit the Project
AnswerC

Correct.

Why this answer

Continued Business Justification requires that the Business Case remains valid throughout the project.

15
MCQmedium

In which process is the Benefits Management Approach first created?

A.Directing a Project
B.Starting Up a Project
C.Managing a Stage Boundary
D.Initiating a Project
AnswerD

Correct. The Benefits Management Approach is part of the PID.

Why this answer

The Benefits Management Approach is created during the Initiating a Project process as part of the PID.

16
MCQmedium

A project is in the Controlling a Stage process. The project manager receives a request from a team manager to change the design specification because of a technical difficulty. The change would not affect the stage plan or the business case. What should the project manager do first?

A.Update the Risk Register and create a risk response
B.Log the issue in the Issue Register and assess the impact
C.Escalate the issue to the project board for a decision
D.Instruct the team manager to proceed with the change
AnswerB

This is the correct initial action for managing issues.

Why this answer

According to PRINCE2, when a team manager raises a technical difficulty that could result in a change, the project manager must first log it as an issue in the Issue Register. Only after logging and assessing the impact can the project manager decide on the appropriate response. Since the change does not affect the stage plan or business case, the project manager can handle it within the stage without escalating to the project board.

Exam trap

The trap here is that candidates often jump to escalation (Option C) or risk management (Option A) without first performing the mandatory step of logging the issue in the Issue Register and assessing its impact.

How to eliminate wrong answers

Option A is wrong because updating the Risk Register and creating a risk response is premature; the issue must first be logged and assessed before any risk-related actions are taken. Option C is wrong because escalation to the project board is only required if the issue affects the stage plan, business case, or exceeds the project manager's delegated authority; here it does not. Option D is wrong because instructing the team manager to proceed without logging and assessing the issue bypasses PRINCE2's issue management procedure and could lead to uncontrolled changes.

17
MCQmedium

Which of the following is an output of the Directing a Project process?

A.Project Plan
B.Authorization to initiate a project
C.End Stage Report
D.Work Package
AnswerB

DP includes authorizing initiation.

Why this answer

The Project Board authorizes the project, initiation, stage plans, and closure. Authorization is a key output of DP.

18
MCQmedium

A project is in the Initiating a Project process. The project manager has drafted the project plan, but the project board requests that the project be broken into management stages. Which factor should primarily determine the number and length of management stages?

A.The project manager's preference for short stages to monitor progress
B.The points in the project where major risks and decisions are expected
C.The availability of team members for each phase
D.The need to keep costs low by minimizing stage boundaries
AnswerB

Stage boundaries are placed at decision points.

Why this answer

In PRINCE2, management stages are defined by key decision points and major risks, not by arbitrary time intervals. The project board uses stage boundaries to reassess business justification, approve continued investment, and control exposure to risk. Therefore, the primary factor is where significant risks or decisions are anticipated, as this aligns with the PRINCE2 principle of managing by stages.

Exam trap

PeopleCert often tests the misconception that stages are based on time or resource convenience, when in PRINCE2 they are strictly determined by management control points where major risks and decisions occur.

How to eliminate wrong answers

Option A is wrong because the project manager's preference for short stages is not a valid PRINCE2 criterion; stages are driven by control needs, not monitoring convenience. Option C is wrong because team member availability influences resource planning but does not determine stage boundaries; stages are about management control points, not staffing schedules. Option D is wrong because minimizing stage boundaries to reduce costs contradicts PRINCE2's requirement for appropriate stage divisions to manage risk and enable go/no-go decisions; cost savings are secondary to effective governance.

19
MCQhard

Which process is responsible for producing the End Project Report?

A.Managing a Stage Boundary
B.Initiating a Project
C.Closing a Project
D.Directing a Project
AnswerC

Correct. CP produces the End Project Report.

Why this answer

The End Project Report is produced during Closing a Project (CP) to summarize project performance and confirm closure.

20
MCQeasy

Which process is used by the Project Board to oversee the entire project?

A.Directing a Project
B.Controlling a Stage
C.Managing Product Delivery
D.Starting Up a Project
AnswerA

DP is the process for the Project Board to manage by exception and make key decisions.

Why this answer

Directing a Project (DP) is the process that covers the Project Board's activities from start to finish, including authorizing stages and closure.

21
Multi-Selectmedium

Which TWO of the following are responsibilities of the Project Manager?

Select 2 answers
A.Managing the stage boundary activities
B.Performing Project Assurance
C.Preparing Highlight Reports for the Project Board
D.Approving stage plans
E.Defining project tolerances
AnswersA, C

The PM manages the stage boundary process, including preparing the next Stage Plan.

Why this answer

The Project Manager is responsible for day-to-day management, including preparing Highlight Reports for the Project Board and managing stage boundaries. Project Assurance is independent, and the Project Board defines tolerances.

22
MCQhard

In PRINCE2, why is the Project Manager role separated from the Project Assurance role?

A.To comply with regulatory requirements
B.To reduce the cost of the project
C.To ensure independent oversight of the project
D.To allow the Project Manager to focus on team management
AnswerC

Independence is the key reason.

Why this answer

Separation ensures independence and objectivity in assurance, preventing conflicts of interest where the PM would be checking their own work.

23
MCQmedium

A Project Manager is planning the next stage. The current stage is on track and within tolerance. Which process is being performed?

A.Managing a Stage Boundary
B.Directing a Project
C.Controlling a Stage
D.Initiating a Project
AnswerA

SB plans the next stage.

Why this answer

Managing a Stage Boundary (SB) is the process where the PM plans the next stage and produces an End Stage Report.

24
MCQmedium

The Project Board is reviewing an Exception Plan and decides to approve it. Which process is the Project Board executing?

A.Controlling a Stage
B.Closing a Project
C.Directing a Project
D.Managing a Stage Boundary
AnswerC

The Project Board authorizes exception plans during Directing a Project.

Why this answer

Approving an Exception Plan is a key decision made by the Project Board during Directing a Project. The Project Board authorizes exception plans, stage plans, and closure. Controlling a Stage is for the PM.

Managing a Stage Boundary produces the Exception Plan but the Board approves it. Closing a Project is for project closure.

25
MCQmedium

Which role is responsible for providing timely feedback on team progress to the Project Manager?

A.Senior User
B.Project Assurance
C.Team Manager
D.Project Support
AnswerC

The Team Manager produces Checkpoint Reports for the Project Manager.

Why this answer

The Team Manager reports progress to the Project Manager via Checkpoint Reports.

26
Multi-Selectmedium

Which TWO roles are part of the Project Board?

Select 2 answers
A.Team Manager
B.Project Manager
C.Senior User
D.Executive
E.Project Support
AnswersC, D

The Senior User is a member of the Project Board.

Why this answer

The Project Board is the decision-making body of a PRINCE2 project, and its mandatory roles are the Executive, Senior User, and Senior Supplier. The Senior User (Option C) is correct because they represent the interests of those who will use the project's outputs and are responsible for specifying requirements and ensuring the project delivers the expected benefits. The Executive (Option D) is correct as they own the business case and have ultimate authority over the project.

Exam trap

PeopleCert often tests the distinction between management roles (Project Board) and delivery/administrative roles (Team Manager, Project Support), leading candidates to mistakenly include the Project Manager as a Board member because they are the most visible role in project execution.

27
Multi-Selectmedium

Which THREE of the following are steps in the PRINCE2 risk management procedure?

Select 3 answers
A.Monitor
B.Plan
C.Implement
D.Analyze
E.Identify
AnswersB, C, E

Plan responses is a step.

Why this answer

The risk management procedure steps are: Identify, Assess, Plan, Implement, Communicate.

28
MCQhard

Which of the following correctly distinguishes Project Assurance from Project Support?

A.Both roles are performed by the same person in small projects
B.Project Support is independent; Project Assurance provides administrative services
C.Project Assurance is part of the Project Manager's team; Project Support is part of the Project Board
D.Project Assurance is independent; Project Support provides administrative services
AnswerD

Correct: Assurance is independent; Support is administrative.

Why this answer

Project Assurance provides independent oversight and is accountable to the Project Board. Project Support provides administrative services to the Project Manager.

29
MCQeasy

Who is responsible for providing independent assurance to the Project Board that the project is on track?

A.Project Support
B.Project Assurance
C.Project Manager
D.Team Manager
AnswerB

Project Assurance is the correct role.

Why this answer

Project Assurance provides independent oversight, reporting to the Project Board, and cannot be delegated to the Project Manager.

30
MCQhard

What is the key difference between the Starting Up a Project (SU) and Initiating a Project (IP) processes?

A.SU is done before the project is formally initiated; IP establishes the project's foundations
B.SU involves the Project Board; IP involves the Project Manager only
C.SU is optional; IP is mandatory
D.SU produces the PID; IP produces the Project Brief
AnswerA

SU is pre-project; IP is the first process after authorisation to initiate.

Why this answer

The Starting Up a Project (SU) process occurs before the project is formally initiated, focusing on verifying the project's viability and creating the Project Brief. The Initiating a Project (IP) process then establishes the project's foundations by creating the Project Initiation Documentation (PID), which includes detailed plans and controls. Thus, the key difference is that SU is a pre-initiation process, while IP formally establishes the project's management foundation.

Exam trap

The trap here is confusing the outputs of SU and IP, specifically that SU produces the Project Brief and IP produces the PID, leading candidates to incorrectly select option D.

How to eliminate wrong answers

Option B is wrong because SU involves the Project Manager and the Executive (not the full Project Board), while IP involves the Project Board for approval and the Project Manager for planning; both processes involve the Project Board at different levels. Option C is wrong because both SU and IP are mandatory processes in PRINCE2; neither is optional. Option D is wrong because SU produces the Project Brief, not the PID, and IP produces the PID, not the Project Brief.

31
MCQmedium

During the Controlling a Stage process, the Project Manager receives a Checkpoint Report showing that a Work Package is behind schedule. What should the Project Manager do first?

A.Raise an Exception Report immediately
B.Assess the impact on the stage plan and take corrective action if within tolerance
C.Inform the Project Board in the next Highlight Report
D.Request a new Work Package from the Team Manager
AnswerB

The PM must evaluate the situation and decide whether corrective action is sufficient within tolerances.

Why this answer

The Project Manager should assess the impact of the delay on the stage plan. If the deviation can be managed within stage tolerances, the PM will take corrective action. If tolerances are forecast to be exceeded, escalation is needed.

32
Multi-Selectmedium

Which TWO of the following are roles that are part of the Project Board?

Select 2 answers
A.Executive
B.Senior User
C.Project Manager
D.Change Authority
E.Team Manager
AnswersA, B

The Executive chairs the Project Board and owns the Business Case.

Why this answer

Options A and D are correct. The Executive and Senior User are mandatory roles on the Project Board. The Project Manager is not on the Board.

The Team Manager reports to the PM. The Change Authority may be a separate role.

33
MCQmedium

Which of the following is a key output of the Initiating a Project process?

A.Project Brief
B.Stage Plan
C.Project Initiation Documentation
D.Benefits Management Approach
AnswerC

The PID is the definitive document produced during the Initiating a Project process.

Why this answer

The Project Initiation Documentation (PID) is the key output of the Initiating a Project process, providing a comprehensive baseline for the project.

34
MCQeasy

Which process does the Project Board use to give ad-hoc direction to the project?

A.Managing Product Delivery
B.Directing a Project
C.Starting Up a Project
D.Controlling a Stage
AnswerB

DP is the Board's process for giving direction and authorizing.

Why this answer

Option A is correct. Directing a Project is the process by which the Project Board provides ongoing direction and authorizes key decisions.

35
MCQhard

In PRINCE2, what is the difference between a risk owner and a risk actionee?

A.The risk owner is the person who identified the risk; the risk actionee is the person who monitors it
B.They are the same role
C.The risk owner is always a member of the Project Board; the risk actionee is always a team member
D.The risk owner is accountable for the risk; the risk actionee carries out the response actions
AnswerD

Correct. The owner manages the risk; the actionee does the work.

Why this answer

The risk owner is accountable for managing the risk and ensuring appropriate responses are implemented. The risk actionee performs the specific actions to respond to the risk.

36
MCQmedium

During the Managing a Stage Boundary process, the Project Manager prepares an Exception Plan. What is the trigger for this activity?

A.The Project Board requests a new Stage Plan.
B.The project is at the end of a stage.
C.The Team Manager reports a Work Package is complete.
D.An Exception Report is raised because stage tolerances are forecast to be exceeded.
AnswerD

The Exception Report triggers the need for an Exception Plan.

Why this answer

In PRINCE2, the trigger for preparing an Exception Plan during the Managing a Stage Boundary process is the raising of an Exception Report. This report is created when the Project Manager forecasts that stage tolerances will be exceeded, indicating that the current Stage Plan cannot be completed within its agreed tolerances. The Exception Plan then replaces the existing Stage Plan to bring the project back within tolerance.

Exam trap

The trap here is that candidates often confuse the trigger for an Exception Plan with the routine end-of-stage planning, forgetting that an Exception Plan is a corrective response to a forecast tolerance breach, not a normal planning activity.

How to eliminate wrong answers

Option A is wrong because the Project Board does not request a new Stage Plan as a trigger; they may approve an Exception Plan, but the trigger is the Exception Report. Option B is wrong because the end of a stage triggers the normal production of a Stage Plan for the next stage, not an Exception Plan. Option C is wrong because a completed Work Package is a routine event that triggers the next activity in the Controlling a Stage process, not the creation of an Exception Plan.

37
MCQhard

What is the difference between a Request for Change (RFC) and an Off-specification (Off-spec)?

A.An RFC only applies to the Business Case; an Off-spec applies to any product
B.An RFC is always accepted; an Off-spec is always rejected
C.An RFC is about changing a product that is already agreed; an Off-spec is about a product that is missing or not meeting specifications
D.An RFC is raised by the Project Board; an Off-spec is raised by the Project Manager
AnswerC

This is the correct distinction.

Why this answer

An RFC is a proposal for a change to a product that has been agreed as part of the baseline, while an Off-spec is something that should be provided by the project but currently is not or is forecast not to be.

38
MCQmedium

During which process does the Project Manager produce the End Stage Report?

A.Closing a Project
B.Managing Product Delivery
C.Managing a Stage Boundary
D.Controlling a Stage
AnswerC

SB produces the End Stage Report and next stage plan.

Why this answer

The End Stage Report is produced in the Managing a Stage Boundary process, which reviews the current stage and plans the next. The report is sent to the Project Board for a decision.

39
Multi-Selectmedium

Which TWO of the following are produced during the Initiating a Project process?

Select 2 answers
A.Project Brief
B.End Stage Report
C.Risk Management Approach
D.Communication Management Approach
E.Exception Report
AnswersC, D

Created in IP as part of PID.

Why this answer

IP produces the PID, which includes the Risk Management Approach and Communication Management Approach. The Project Brief is from SU, and the End Stage Report is from SB.

40
Multi-Selecteasy

Which TWO of the following are outputs of the Starting Up a Project process?

Select 2 answers
A.Initiation Stage Plan
B.Benefits Management Approach
C.Project Brief
D.End Project Report
E.Project Initiation Documentation
AnswersA, C

The Stage Plan for initiation is created in SU.

Why this answer

SU produces the Project Brief and the Stage Plan for the initiation stage. The Daily Log is also created but not a formal output. The PID is from IP.

41
MCQhard

Which document is the key output of the Initiating a Project process?

A.Project Brief
B.Project Initiation Documentation (PID)
C.Stage Plan
D.Business Case
AnswerB
42
MCQmedium

Which document is produced in the Initiating a Project process and defines how the project will be managed?

A.Stage Plan
B.Project Initiation Documentation
C.Project Brief
D.Business Case
AnswerB

The PID is the output of Initiating a Project.

Why this answer

The Project Initiation Documentation (PID) is the key output of Initiating a Project and defines the project's approach, controls, and plans.

43
MCQmedium

Which role is responsible for providing independent assurance that the project is being managed correctly?

A.Project Assurance
B.The Project Manager
C.The Team Manager
D.Project Support
AnswerA

Project Assurance is independent and reports to the Project Board.

Why this answer

Option B is correct. Project Assurance is an independent role that monitors project performance and compliance. Project Support provides administrative support.

44
MCQhard

In risk management, what is the difference between a risk owner and a risk actionee?

A.The risk owner takes the risk on behalf of the organization; the risk actionee is the Project Manager
B.The risk owner is from the Project Board; the risk actionee is from the team
C.The risk owner identifies the risk; the risk actionee assesses it
D.The risk owner is responsible for managing the risk; the risk actionee implements the response
AnswerD

This is the correct distinction: owner manages, actionee implements.

Why this answer

The risk owner is responsible for managing the risk and ensuring the response is implemented. The risk actionee is the person who carries out the response actions. The risk owner may delegate actions but retains accountability.

45
Multi-Selectmedium

Which TWO roles are permanent members of the Project Board in PRINCE2?

Select 2 answers
A.Team Manager
B.Senior Responsible Owner (Executive)
C.Change Authority
D.Project Manager
E.Senior User
AnswersB, E

The Executive is a permanent Project Board member.

Why this answer

The three permanent roles on the Project Board are the Executive (SRO), Senior User, and Senior Supplier. The Project Manager is not a permanent member; they attend but are not on the Board.

46
MCQeasy

Which PRINCE2 theme provides a mechanism to monitor actual progress against planned progress?

A.Business Case
B.Change
C.Risk
D.Progress
AnswerD
47
MCQhard

During a quality review, who is responsible for ensuring that the review is conducted effectively?

A.Chair
B.Project Assurance
C.Presenter
D.Project Manager
AnswerA

The Chair manages the review meeting.

Why this answer

The quality review technique specifies three roles: Presenter, Chair, and Reviewer. The Chair is responsible for managing the review meeting and ensuring it is effective and fair.

48
MCQeasy

Which output is produced during the Starting Up a Project process?

A.End Stage Report
B.Project Initiation Documentation
C.Checkpoint Report
D.Project Brief
AnswerD

Correct. The Project Brief is created during Starting Up a Project.

Why this answer

Starting Up a Project produces the Project Brief, initiation Stage Plan, and Daily Log. The Project Brief is a key output.

49
MCQmedium

What is the purpose of the Closing a Project process?

A.To plan the next stage of the project
B.To manage the day-to-day delivery of products
C.To authorize the initiation of the project
D.To evaluate the project and ensure a controlled close
AnswerD

This is the purpose of Closing a Project.

Why this answer

Closing a Project provides a controlled closure, ensuring that all products are handed over, the project is formally completed, and lessons are captured.

50
MCQmedium

A project is forecast to exceed its stage cost tolerance. What should the Project Manager do?

A.Continue and report in the next Highlight Report
B.Raise an Exception Report to the Project Board
C.Close the project
D.Increase the cost tolerance and continue
AnswerB

Correct. Management by exception requires immediate escalation.

Why this answer

When tolerance is forecast to be exceeded, the Project Manager must raise an Exception Report to the Project Board.

51
Multi-Selecthard

Which THREE of the following are components of the Project Initiation Documentation (PID)?

Select 3 answers
A.Project Plan
B.Risk Register
C.Business Case
D.Checkpoint Report
E.Project Brief
AnswersA, B, C

The Project Plan is a key component of the PID.

Why this answer

The Project Initiation Documentation (PID) is a key PRINCE2 management product that provides a foundation for the project. The Project Plan is a core component of the PID as it defines how and when the project's objectives are to be achieved, including the schedule and resource allocation. The Risk Register is also a component because it documents all identified risks and their management strategies, which is essential for informed decision-making.

The Business Case is a mandatory component of the PID, as it justifies the project's viability and provides the basis for continued approval.

Exam trap

PeopleCert often tests the distinction between management products that are part of the PID versus those that are produced during other processes, leading candidates to mistakenly include the Project Brief or Checkpoint Report as PID components.

52
MCQmedium

What is the difference between a Request for Change and an Off-specification?

A.An Off-specification is always raised by the Project Manager
B.A Request for Change is always urgent; an Off-specification is not
C.There is no difference
D.A Request for Change proposes a modification; an Off-specification identifies a gap in requirements
AnswerD

Correct: RC is a change; Off-spec is a failure to meet a requirement.

Why this answer

A Request for Change is a proposed modification, while an Off-specification is something that was required but not delivered.

53
MCQhard

A project is forecast to exceed its stage cost tolerance. The Project Manager has raised an Exception Report. Which process does the Project Board use to decide how to respond?

A.Managing Product Delivery
B.Controlling a Stage
C.Directing a Project
D.Managing a Stage Boundary
AnswerC

DP covers ad-hoc direction and decision-making by the Board.

Why this answer

The Project Board uses Directing a Project to give ad-hoc direction, including responding to exception reports.

54
Multi-Selecthard

Which THREE of the following are components of the Project Initiation Documentation (PID)?

Select 3 answers
A.Business Case
B.Product Status Account
C.Project Brief
D.Project Approach
E.Project Plan
AnswersA, D, E

The Business Case is part of the PID.

Why this answer

The PID includes the Business Case, Project Plan, and Project Approach. Options A, B, and C are correct. Option D is wrong because the Project Brief is created before the PID.

Option E is wrong because the Product Status Account is a configuration management report, not part of PID.

55
MCQmedium

What is the difference between a risk owner and a risk actionee?

A.The risk owner is accountable for the risk; the risk actionee performs the response actions
B.The risk owner reports to the Project Board; the risk actionee reports to the risk owner
C.The risk owner identifies the risk; the risk actionee assesses it
D.The risk owner is responsible for threats; the risk actionee for opportunities
AnswerA

This correctly distinguishes the roles: owner is accountable, actionee implements.

Why this answer

In PRINCE2, the risk owner is the person accountable for the management and outcome of a specific risk, including ensuring that appropriate response actions are planned and executed. The risk actionee, by contrast, is the person assigned to carry out the specific response actions defined in the risk response plan. This distinction ensures clear accountability versus execution responsibility within the risk management process.

Exam trap

The trap here is that candidates confuse accountability with responsibility, assuming the risk owner must also perform the actions, or that the risk actionee has any ownership of the risk itself, when PRINCE2 deliberately separates these roles to ensure clear governance.

How to eliminate wrong answers

Option B is wrong because the risk owner does not necessarily report to the Project Board; the risk owner is accountable for the risk but may report through the project management team, and the risk actionee reports to the risk owner regarding the execution of response actions, not as a fixed hierarchical line. Option C is wrong because the risk owner does not solely identify the risk; identification is a team effort involving multiple stakeholders, and assessment is performed by the project manager or risk specialist, not exclusively by the risk actionee. Option D is wrong because the risk owner is responsible for both threats and opportunities, and the risk actionee can be assigned to response actions for either type; there is no split by threat/opportunity based on role.

56
MCQhard

In PRINCE2, what is the difference between a Request for Change (RFC) and an Off-specification?

A.There is no difference; they are synonyms
B.An RFC is always approved; an off-specification is always rejected
C.An RFC is about cost; an off-specification is about time
D.An RFC is a proposed change; an off-specification is a failure to meet a specified requirement
AnswerD

This is the core distinction.

Why this answer

Option D is correct because in PRINCE2, a Request for Change (RFC) is a formal proposal to change a product, baseline, or agreed scope, while an Off-specification is a formal notification that a product or deliverable does not meet its specified requirements. The key distinction is that an RFC is a proactive suggestion for change, whereas an Off-specification is a reactive report of a deviation or failure against an agreed specification.

Exam trap

The trap here is that candidates confuse the proactive nature of an RFC with the reactive nature of an Off-specification, often assuming both are just 'problems' or that they are interchangeable terms for any issue.

How to eliminate wrong answers

Option A is wrong because RFC and Off-specification are distinct concepts with different purposes and triggers; they are not synonyms. Option B is wrong because an RFC is not always approved—it goes through change control and can be rejected, and an Off-specification is not always rejected; it can be resolved via a concession or corrective action. Option C is wrong because an RFC can involve cost, time, scope, or quality changes, and an Off-specification can relate to any requirement failure, not just time.

57
Multi-Selecthard

Which THREE of the following are true about the role of the Project Board?

Select 3 answers
A.It is accountable for the project's success
B.It provides unified direction to the project
C.It includes the Project Manager as a member
D.It is responsible for day-to-day management of the project
E.It consists of the Executive, Senior User, and Senior Supplier
AnswersA, B, E

The Project Board is accountable to the organization.

Why this answer

The Project Board is accountable for the project's success, provides unified direction, and includes the Executive, Senior User, and Senior Supplier. Option A is false because the Project Manager is not on the Board. Option E is false because the Board does not perform day-to-day management.

58
MCQhard

What is the difference between a Request for Change and an Off-specification?

A.A Request for Change is always raised by the Project Manager; an Off-specification is raised by the Team Manager
B.There is no difference; they are synonyms
C.A Request for Change requires a change budget; an Off-specification is always free
D.A Request for Change proposes a change to an agreed product; an Off-specification identifies a product that does not meet its specification
AnswerD

Correct distinction.

Why this answer

A Request for Change is a proposal for a modification to a product that has been approved or baselined. An Off-specification is a situation where a product is not meeting its specification. Both are issue types.

59
MCQhard

During the Controlling a Stage process, the Team Manager reports a completed product. What does the Project Manager do next?

A.Accept the work package and update the Stage Plan
B.Raise an Issue to the Project Board
C.Update the Project Plan
D.Send a Highlight Report
AnswerA
60
MCQeasy

Who is responsible for maintaining the Business Case throughout the project?

A.Project Assurance
B.Project Manager
C.Senior Responsible Owner (SRO)
D.Senior Supplier
AnswerC

The SRO is accountable for the Business Case and its maintenance throughout the project.

Why this answer

The Senior Responsible Owner (SRO) is accountable for the Business Case and ensures it remains viable throughout the project.

61
Multi-Selectmedium

Which TWO of the following are responsibilities of the Project Board?

Select 2 answers
A.Authorize expenditure beyond delegated authority
B.Approve the Stage Plans
C.Manage the day-to-day activities of the team
D.Produce the Project Plan
E.Update the Business Case
AnswersA, B

The Project Board approves exceptions beyond their delegated tolerances.

Why this answer

The Project Board is responsible for overall project governance, including authorizing expenditure beyond the delegated authority of the Project Manager. This ensures that financial control remains at the senior management level, preventing unauthorized spending that could jeopardize the project's budget.

Exam trap

PeopleCert often tests the distinction between strategic and operational responsibilities, where candidates mistakenly assign day-to-day management or plan production to the Project Board instead of the Project Manager.

62
Multi-Selecthard

Which THREE of the following are characteristics of Project Assurance?

Select 3 answers
A.Independent of the Project Manager
B.Involved in day-to-day team management
C.Responsible for administrative support
D.Can be performed by multiple individuals or a committee
E.Provides objective oversight to the Project Board
AnswersA, D, E

Assurance must be independent to provide objective oversight.

Why this answer

Project Assurance is a PRINCE2 role that provides an independent, objective view of the project's progress, ensuring that it remains viable and compliant with the business case, quality standards, and risks. Option A is correct because the Project Assurance role must be independent of the Project Manager to avoid conflicts of interest and provide unbiased oversight to the Project Board.

Exam trap

PeopleCert often tests the distinction between Project Assurance (independent oversight) and Project Support (administrative tasks), leading candidates to confuse the two roles.

63
MCQhard

Refer to the exhibit. According to PRINCE2, to whom should the Team Manager report the potential delay?

A.The Executive, John Smith
B.The Project Manager, Sarah Lee
C.The Project Assurance, Peter Black
D.The Senior User, Mary Johnson
AnswerB

Correct: The Team Manager reports to the Project Manager.

Why this answer

In PRINCE2, the Team Manager is responsible for delivering the work package and reports to the Project Manager on progress, issues, and risks. The Project Manager (Sarah Lee) is the single point of contact for the Team Manager within the project management team. Therefore, any potential delay must be reported to the Project Manager, who will then escalate to the Project Board if necessary.

Exam trap

The trap here is that candidates confuse the reporting lines within the project management team, mistakenly thinking a Team Manager should report directly to a Project Board member (Executive, Senior User, or Project Assurance) rather than to the Project Manager who coordinates all delivery-level communications.

How to eliminate wrong answers

Option A is wrong because the Executive (John Smith) is the project's business representative and chair of the Project Board, not the direct line of communication for a Team Manager; the Team Manager reports to the Project Manager, not to the Executive. Option C is wrong because Project Assurance (Peter Black) is an independent oversight role that monitors compliance and performance, not a recipient of operational progress reports from the Team Manager. Option D is wrong because the Senior User (Mary Johnson) represents user requirements and benefits, but the Team Manager's reporting line is to the Project Manager, not to any individual Project Board member.

64
MCQhard

An issue is raised that a product delivered by a supplier does not include a feature that was agreed in the product description. The Project Manager determines that the product is still usable without the feature. What type of issue is this?

A.Request for Change
B.Off-specification
C.Problem/Concern
D.Risk
AnswerB

An Off-specification is a product that does not meet its specification or is missing a required feature.

Why this answer

An Off-specification is something that should be provided but is not (or is provided but does not meet specifications). A Request for Change is a proposed change. A Problem/Concern is a general issue.

Here, the feature is missing, so it's an Off-specification.

65
MCQeasy

Which process is triggered when the Project Manager needs to plan the next stage and report on the current stage's performance?

A.Controlling a Stage
B.Starting Up a Project
C.Directing a Project
D.Managing a Stage Boundary
AnswerD

Correct. SB produces the End Stage Report and next Stage Plan.

Why this answer

The Managing a Stage Boundary process is triggered at the end of each stage (except the final stage) to plan the next stage and produce an End Stage Report.

66
MCQmedium

Refer to the exhibit. PRINCE2 Configuration Item Record Item ID: CI-103 Product: User Authentication Module Version: 2.1 Status: Under Development Baseline: 2.0 Last Review: 2024-01-15 Owner: Project Support Office Issue: The team reports that the latest version (2.1) has a critical defect. The status is 'Under Development' but the baseline is still 2.0. What process should the project manager follow?

A.Log the defect as an issue and manage it through Controlling a Stage.
B.Include the defect in the next Managing a Stage Boundary report.
C.Update the configuration item record and close the project.
D.Raise an exception report to the project board for a baseline change.
AnswerA

Issues are managed during Controlling a Stage.

Why this answer

Option A is correct because the defect in version 2.1 of the User Authentication Module is a new issue that must be formally logged and managed within the current stage. PRINCE2 requires that all issues (including defects) be captured in the Issue Register and handled through the Controlling a Stage process, which includes assessing the impact, deciding on corrective action, and updating the Configuration Item Record (CIR) accordingly. The baseline remains 2.0 because version 2.1 is still under development and has not been baselined, so the defect does not trigger a baseline change request.

Exam trap

PeopleCert often tests the distinction between managing issues within a stage (Controlling a Stage) versus escalating to the project board (Exception Report) or deferring to stage boundaries (Managing a Stage Boundary); the trap here is assuming that any defect automatically requires a baseline change or an exception report, when in fact the product is still under development and the defect can be handled as a normal issue within the current stage.

How to eliminate wrong answers

Option B is wrong because the Managing a Stage Boundary process is used to report on stage progress and plan the next stage, not to manage defects that arise during the current stage; defects must be addressed immediately via Controlling a Stage. Option C is wrong because updating the CIR and closing the project would ignore the defect entirely and violate PRINCE2's principle of continued business justification and management by stages. Option D is wrong because an exception report is only raised when a stage plan is forecast to exceed tolerance levels; a single defect in a product under development does not automatically constitute a stage-level exception, and a baseline change is not required since version 2.1 has not been baselined.

67
MCQmedium

In PRINCE2, who is responsible for the day-to-day management of the project within the tolerances set by the Project Board?

A.Executive (SRO)
B.Senior User
C.Senior Supplier
D.Project Manager
AnswerD

The Project Manager is responsible for day-to-day management.

Why this answer

The Project Manager is responsible for the day-to-day management of the project within the tolerances set by the Project Board. This includes planning, delegating, monitoring, and controlling all aspects of the project, while reporting any deviations that exceed the agreed tolerances to the Project Board.

Exam trap

The trap here is confusing the Project Manager's operational role with the strategic or representational roles of the Executive, Senior User, or Senior Supplier, leading candidates to incorrectly select a board member for day-to-day management.

How to eliminate wrong answers

Option A is wrong because the Executive (Senior Responsible Owner) is the project's business champion, responsible for the business case and overall project justification, not for day-to-day management. Option B is wrong because the Senior User represents the interests of those who will use the project's outputs and specifies user requirements, but does not manage the project on a daily basis. Option C is wrong because the Senior Supplier represents the interests of those providing the project's products and ensures supplier resources are available, but is not involved in daily project management.

68
Multi-Selectmedium

Which TWO of the following are types of issue in PRINCE2?

Select 2 answers
A.Assumption
B.Off-specification
C.Risk
D.Request for Change
E.Constraint
AnswersB, D

A type of issue.

Why this answer

The three types of issue are Request for Change, Off-specification, and Problem/Concern.

69
Multi-Selectmedium

Which THREE of the following are components of the Project Initiation Documentation (PID)?

Select 3 answers
A.The Risk Register
B.The Lessons Log
C.The Business Case
D.The Project Plan
E.The Team Manager
AnswersA, C, D

The Risk Register is included in the PID.

Why this answer

Options A, B, and D are correct. The PID includes the Business Case, Project Plan, and Risk Register. The Team Manager is a role, not a document.

The Lessons Log is created earlier and maintained, but it is not part of the PID; it is a separate register.

70
MCQeasy

What is the purpose of the Quality Review technique?

A.To assess whether a product meets its quality criteria
B.To identify risks in the project
C.To approve changes to the project scope
D.To plan quality activities
AnswerA

Correct: the technique assesses product quality.

Why this answer

The Quality Review technique is a systematic review of a product to assess its conformance to quality criteria.

71
MCQmedium

What is the purpose of the Product Status Account?

A.To approve changes to baselined products
B.To document product descriptions
C.To report on the status of products in the project
D.To record changes to products
AnswerC

The Product Status Account is used to report on product status.

Why this answer

A Product Status Account provides information about the status of one or more products, including version, status, and location.

72
Multi-Selecthard

Which THREE of the following are correct statements about the Risk Management procedure in PRINCE2?

Select 3 answers
A.The risk budget is used to fund risk responses
B.The procedure consists of five steps: Identify, Assess, Plan, Implement, Communicate
C.Risk owners and risk actionees are assigned during the Assess step
D.Only threats are considered; opportunities are handled separately
E.Communication is a continuous step throughout the procedure
AnswersA, B, E

Risk responses may be funded from the risk budget.

Why this answer

The risk management procedure consists of: Identify, Assess, Plan, Implement, Communicate. Both threats and opportunities are managed. The risk budget is used to fund risk responses.

Risk owners and actionees are assigned during the Plan step.

73
MCQhard

During a stage, a team manager reports that a key product will be delivered two weeks late due to resource constraints. The project manager updates the stage plan and finds that the stage tolerance for time is about to be exceeded. What is the first action the project manager should take?

A.Issue an exception report to the project board
B.Revise the project plan to absorb the delay
C.Reassign resources to the delayed product
D.Request a concession from the project board
AnswerA

When tolerance is forecast to be exceeded, the project manager must produce an Exception Report and seek guidance from the project board.

Why this answer

The project manager must escalate the issue to the project board because the stage tolerance for time is about to be exceeded. According to PRINCE2, when a forecast indicates that a stage will exceed its tolerances, the project manager must produce an Exception Report and submit it to the project board, which then decides on corrective action. This is a mandatory escalation step to maintain management by exception.

Exam trap

The trap here is that candidates often think the project manager can handle the delay internally by reassigning resources or revising plans, but PRINCE2 strictly requires escalation via an Exception Report when stage tolerance is forecast to be exceeded.

How to eliminate wrong answers

Option B is wrong because revising the project plan to absorb the delay is a corrective action that falls outside the project manager's authority once stage tolerance is breached; only the project board can authorize changes beyond tolerance. Option C is wrong because reassigning resources to the delayed product is an operational decision that does not address the imminent tolerance breach and may violate existing resource agreements without board approval. Option D is wrong because requesting a concession is not a PRINCE2 term; the correct escalation mechanism is an Exception Report, and the project board may grant a concession only after receiving that report.

74
MCQhard

A Work Package has been completed and the Team Manager has delivered the products. The Project Manager notices a minor defect that does not affect the overall product quality. What should the Project Manager do?

A.Issue a Request for Change to modify the product description
B.Accept the product and note the defect in the Lessons Log
C.Raise an Exception Report to the Project Board
D.Reject the product and ask the Team Manager to correct the defect
AnswerD

Correct. The product should meet its quality criteria; the Team Manager should correct the defect.

Why this answer

In Managing Product Delivery, the Team Manager must deliver products that meet their quality criteria. If a product is delivered with a defect, even minor, it may be considered an off-specification. However, the most appropriate action first is to ask the Team Manager to fix it, as the defect should have been identified during quality inspection.

If the defect is accepted, it becomes an off-specification and a concession may be needed.

Page 1 of 24

Page 2