- A
Request a budget increase and complete the project
Why wrong: The budget overrun is too severe; a simple increase does not address the poor cost performance.
- B
Continue as planned but monitor costs more tightly
Why wrong: The project is not viable; continuing ignores the fundamental issue.
- C
Recommend closure of the project because the business case is no longer viable
PRINCE2 requires ongoing business case validation; if the project cannot deliver benefits within tolerance, closure is appropriate.
- D
Proceed with an exception plan without board approval
Why wrong: Exception plans require board approval; bypassing change control violates PRINCE2 principles.
Question 1,719 of 1,731
PRINCE2F Practice Question: Overview of PRINCE2 and the project environment
This PRINCE2F practice question tests your understanding of overview of prince2 and the project environment. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
A project manager is reviewing a project that has been running for three months. The business case was approved with a cost tolerance of +/- 10%. The project has already spent 95% of the budget but has only completed 40% of the scope. The project board is meeting to decide the project's fate. The project manager should advise the board to:
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
✓
Recommend closure of the project because the business case is no longer viable
Option C is correct because the project has consumed 95% of the budget while delivering only 40% of the scope, making the original business case no longer viable. PRINCE2 requires continuous business justification; if the costs outweigh the benefits, the project should be closed. The project manager must advise the board to close the project as continuing would waste further resources.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Request a budget increase and complete the project
Why it's wrong here
The budget overrun is too severe; a simple increase does not address the poor cost performance.
- ✗
Continue as planned but monitor costs more tightly
Why it's wrong here
The project is not viable; continuing ignores the fundamental issue.
- ✓
Recommend closure of the project because the business case is no longer viable
Why this is correct
PRINCE2 requires ongoing business case validation; if the project cannot deliver benefits within tolerance, closure is appropriate.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Proceed with an exception plan without board approval
Why it's wrong here
Exception plans require board approval; bypassing change control violates PRINCE2 principles.
Common exam traps
Common exam trap: answer the scenario, not the keyword
PeopleCert often tests the misconception that a project can be saved by simply requesting more budget or monitoring costs, but PRINCE2 demands that the business case be re-evaluated when tolerance is breached, and if it is no longer viable, the project must be closed.
Detailed technical explanation
How to think about this question
Under PRINCE2, the business case is the key document for continued justification; if the projected costs exceed the agreed tolerance (here +/-10%), the project is in exception and must be escalated to the board. The board then decides whether to approve an exception plan (which includes revised costs and schedule) or close the project. In this scenario, the 55% gap between spend and completion indicates the original business case is fundamentally broken, making closure the only viable option.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
TExam Day Tips
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A practitioner preparing for the PRINCE2F exam encounters this exact type of scenario on the job. The correct answer here is not the most general option — it is the best answer for the specific constraint described. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Real exam questions reward reading the full scenario before eliminating options, because the constraint defines which answer fits.
What to study next
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
- →
Overview of PRINCE2 and the project environment — study guide chapter
Learn the concepts, then practise the questions
- →
Overview of PRINCE2 and the project environment practice questions
Targeted practice on this topic area only
- →
All PRINCE2F questions
1,731 questions across all exam domains
- →
PRINCE2 Foundation study guide
Full concept coverage aligned to exam objectives
- →
PRINCE2F practice test guide
How to use practice tests most effectively before exam day
Related practice questions
Related PRINCE2F practice-question pages
Use these pages to review the topic behind this question. This is how one missed question becomes focused revision.
Overview of PRINCE2 and Principles practice questions
Practise PRINCE2F questions linked to Overview of PRINCE2 and Principles.
Business Case and Organizing practice questions
Practise PRINCE2F questions linked to Business Case and Organizing.
Project Initiation and Stages practice questions
Practise PRINCE2F questions linked to Project Initiation and Stages.
Overview of PRINCE2 and the project environment practice questions
Practise PRINCE2F questions linked to Overview of PRINCE2 and the project environment.
People: organizations, teams, and leadership practice questions
Practise PRINCE2F questions linked to People: organizations, teams, and leadership.
PRINCE2 Practices practice questions
Practise PRINCE2F questions linked to PRINCE2 Practices.
PRINCE2 Processes practice questions
Practise PRINCE2F questions linked to PRINCE2 Processes.
PRINCE2F fundamentals practice questions
Practise PRINCE2F questions linked to PRINCE2F fundamentals.
PRINCE2F scenario practice questions
Practise PRINCE2F questions linked to PRINCE2F scenario.
PRINCE2F troubleshooting practice questions
Practise PRINCE2F questions linked to PRINCE2F troubleshooting.
Practice this exam
Start a free PRINCE2F practice session
Short sessions build daily habit. Longer sessions build exam-day stamina. Try a timed session to simulate real conditions.
FAQ
Questions learners often ask
What does this PRINCE2F question test?
Overview of PRINCE2 and the project environment — This question tests Overview of PRINCE2 and the project environment — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Recommend closure of the project because the business case is no longer viable — Option C is correct because the project has consumed 95% of the budget while delivering only 40% of the scope, making the original business case no longer viable. PRINCE2 requires continuous business justification; if the costs outweigh the benefits, the project should be closed. The project manager must advise the board to close the project as continuing would waste further resources.
What should I do if I get this PRINCE2F question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
About these practice questions
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
Keep practising
More PRINCE2F practice questions
- Which TWO of the following statements about the Quality Review technique are correct?
- A project is in its closing stage. The business case shows that all planned benefits have been realized. What should the…
- Which THREE of the following are PRINCE2 principles?
- A project manager is assigned to a project where the executive is often unavailable. Which role can act as a substitute…
- A project is initiating and the Business Case shows a cost-benefit ratio of 1:1.2. The project board is concerned. What…
- Which management product is used to capture lessons during the Initiation Stage?
Last reviewed: Jun 30, 2026
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.
Question Discussion
Share a tip, memory trick, or ask about the reasoning behind this question. Do not post real exam questions, leaked content, braindumps, or copyrighted exam material. Comments are moderated and may be removed without notice.
Sign in to join the discussion.