74 of 164 questions · Page 2/3 · Overview of PRINCE2 and the project environment · Answers revealed
Who is responsible for maintaining the Business Case throughout the project?
The Project Manager is responsible for maintaining the Business Case on a day-to-day basis.
Why this answer
The Senior User is responsible for specifying the benefits and ensuring they are realized, but the Executive owns the Business Case. The Project Manager maintains it on a day-to-day basis.
What is the purpose of the Highlight Report?
The Highlight Report goes to the Project Board.
Why this answer
The Highlight Report is provided by the Project Manager to the Project Board at the end of each reporting period to summarize progress.
Which of the following is a characteristic of a project according to PRINCE2?
A project in a highly regulated industry must comply with external legal requirements. The project manager is concerned that changes in regulations during the project could affect the project's viability. According to PRINCE2, which management product should be updated to reflect the impact of regulatory changes?
The business case contains the project's justification; if external regulations change, the business case must be reviewed to ensure the project remains viable.
Why this answer
The Business Case is the correct management product because it documents the justification for the project, including costs, benefits, and risks. A change in external regulations directly impacts the project's viability, which is a fundamental aspect of the Business Case. PRINCE2 requires the Business Case to be updated whenever there is a change that could affect the project's continued justification.
Exam trap
PeopleCert often tests the distinction between the Business Case (project justification) and the Risk Register (specific risks), leading candidates to incorrectly choose the Risk Register when the question asks about impact on viability.
How to eliminate wrong answers
Option A is wrong because the Issue Register is used to capture and manage issues (unplanned events requiring management action), not to reflect the impact of regulatory changes on project viability. Option B is wrong because the Project Plan details the schedule, resources, and costs, but the impact on viability (whether the project remains worthwhile) is documented in the Business Case, not the plan. Option D is wrong because the Risk Register captures specific risks and their responses, but the overall impact of regulatory changes on the project's justification is a Business Case concern, not a risk to be logged.
In PRINCE2, which role is responsible for providing independent assurance that the project is being managed correctly?
Project Assurance is independent and checks compliance.
Why this answer
Project Assurance is an independent role, separate from Project Support.
What is the purpose of the Managing a Stage Boundary process?
SB provides a control point between stages.
Why this answer
The purpose of Managing a Stage Boundary is to enable the Project Board to review the current stage's performance and approve the next stage plan. Option B is correct. Option A describes IP.
Option C describes CS. Option D describes SU.
Who is responsible for maintaining the Business Case throughout the project?
What is the purpose of the Managing a Stage Boundary process?
Correct.
Why this answer
The purpose is to enable the Project Board to review the current stage's performance, approve the next stage plan, and update the Business Case and project plan.
A project is forecast to exceed its cost tolerance at the project level. What should the Project Manager do first?
This is the correct action per PRINCE2's management by exception.
Why this answer
When a project is forecast to exceed its cost tolerance at the project level, the Project Manager must first escalate the deviation to the Project Board by raising an Exception Report. This is because the Project Board holds the authority to approve changes to tolerances or authorize corrective actions, and the Project Manager cannot unilaterally revise the plan or close the project. The Exception Report provides the Board with the necessary information to make an informed decision on how to proceed.
Exam trap
The trap here is that candidates often confuse escalation to the Programme Manager (Option A) with the correct escalation to the Project Board, or mistakenly believe the Project Manager can autonomously revise the plan (Option B) when the forecast breach requires Board-level decision-making.
How to eliminate wrong answers
Option A is wrong because the Project Manager escalates to the Project Board, not the Programme Manager; the Programme Manager would only be involved if the project is part of a programme and the Board decides to escalate further. Option B is wrong because revising the Project Plan and continuing without Board approval violates the management by exception principle; the Project Manager must first report the forecast deviation before any plan changes. Option D is wrong because closing the project is a premature action; the Project Board must decide whether to close, continue with revised tolerances, or take other corrective measures based on the Exception Report.
Which document is the key output of the Initiating a Project process?
The PID is the key output of Initiating a Project.
Why this answer
The PID is the key output that provides the basis for managing the project.
Which TWO of the following are characteristics of a project as defined by PRINCE2?
Correct. Projects create unique outputs.
Why this answer
Projects are temporary and deliver unique products. Ongoing operations are not projects.
What is the purpose of the Managing a Stage Boundary process?
Correct; it enables the Board to decide whether to continue.
Why this answer
This process provides the Project Board with information to review the current stage, approve the next stage plan, and assess the updated Business Case.
Which THREE of the following are characteristics of a project according to PRINCE2?
The output of a project is unique.
Why this answer
Option A is correct because PRINCE2 defines a project as a temporary organization created to deliver one or more business products according to an agreed business case. The uniqueness of the product is a core characteristic, meaning the output is not a routine or repetitive item but something new or different, which distinguishes a project from ongoing operations.
Exam trap
PeopleCert often tests the misconception that a project must have a fixed budget, but PRINCE2 uses tolerances to allow controlled flexibility, so candidates should not confuse a project's constraints with rigid limits.
What is the primary purpose of the 'Manage by exception' principle?
Correct. It sets tolerances and escalates only when breached.
Why this answer
Manage by exception means that the Project Board only needs to be involved when tolerances are forecast to be exceeded. This frees them to focus on strategic decisions.
What is the difference between Project Assurance and Project Support?
Correct. Assurance is independent; Support is administrative.
Why this answer
Project Assurance is independent oversight, while Project Support is administrative assistance. Assurance is not done by the PM or support staff.
What is the difference between a Request for Change and an Off-specification?
Which statement about the Project Assurance role is true?
Project Assurance is independent and reports to the Project Board.
Why this answer
Option A is correct because the PRINCE2 methodology defines Project Assurance as an independent check on the project's progress, performed on behalf of the Project Board. It is separate from the Project Manager's day-to-day management and ensures that the project remains viable, compliant with standards, and aligned with business objectives. This independence is critical for objective oversight and is a core principle of PRINCE2's governance model.
Exam trap
The trap here is confusing Project Assurance with Project Support, as both roles involve oversight or assistance, but PRINCE2 explicitly separates them: Assurance is independent and reports to the Board, while Support is administrative and reports to the Project Manager.
How to eliminate wrong answers
Option B is wrong because Project Assurance is not a full-time role on every project; it can be performed part-time or by multiple individuals, depending on the project's scale and complexity. Option C is wrong because Project Assurance is distinct from Project Support; Project Support provides administrative and clerical services, while Assurance provides independent oversight and checks. Option D is wrong because Project Assurance is not responsible for administrative support; that is the function of Project Support, which assists the Project Manager with tasks like filing, scheduling, and maintaining records.
What is the difference between tailoring and embedding PRINCE2?
Correct distinction.
Why this answer
Tailoring adapts PRINCE2 to the project's environment; embedding is integrating it into the organization's culture.
A project is using PRINCE2. The Senior User identifies a new requirement that was not in the original scope. What should the Project Manager do first?
All requests for change are logged as issues initially.
Why this answer
The Project Manager should log it as an issue and assess the impact. Option A is correct. Option B is premature.
Option C is wrong as the PM can log issues without authorization. Option D is wrong as the PM should not ignore it.
Which of the following is an integrated element of PRINCE2?
Correct; these are the integrated elements.
Why this answer
PRINCE2 integrates principles, themes (practices), and processes. Tailoring is also an element but is applied across these.
Which THREE of the following are reasons why projects fail, which PRINCE2 aims to address?
PRINCE2 provides structured planning processes.
Why this answer
PRINCE2 addresses lack of clear objectives, insufficient stakeholder involvement, and poor planning. Option A, C, and D are correct. Option B is not necessarily a project failure reason; PRINCE2 does not cover HR.
Option E is not typically a reason; PRINCE2 includes change control.
Which TWO of the following are benefits of adopting PRINCE2?
PRINCE2 defines roles and reporting.
Why this answer
Option A is correct because PRINCE2 provides a structured framework with defined roles, responsibilities, and management products (e.g., Highlight Reports, Issue Reports) that standardize communication channels and enable better control through stage-gate approvals and exception management. This reduces ambiguity and ensures stakeholders receive timely, relevant information.
Exam trap
The trap here is that candidates often confuse ‘improved control’ with ‘guaranteed success’ or assume PRINCE2’s prescriptive nature eliminates all project risks, when in fact it only provides a disciplined framework to manage them.
What is the difference between the Starting Up a Project process and the Initiating a Project process?
Which THREE of the following are integrated elements of the PRINCE2 methodology?
Correct. Practices (themes) are one of the integrated elements.
Why this answer
The PRINCE2 framework consists of 7 principles, 7 practices (themes), and 7 processes. Tailoring is also an element but is not listed here.
Which PRINCE2 principle ensures that a project remains viable by requiring continuous justification of the project's objectives against the benefits?
This principle requires that the project's business justification is maintained and reviewed throughout, ensuring the project remains viable.
Why this answer
The 'continued business justification' principle requires that the business justification for the project is reviewed and updated throughout the project. Options A and B are other principles but do not directly address viability. Option D is not a PRINCE2 principle.
Which of the following is NOT covered by PRINCE2?
PRINCE2 does not cover HR.
Why this answer
PRINCE2 does not cover HR management; it focuses on project management processes.
What is the purpose of the Managing a Stage Boundary (SB) process?
Correct. The SB process produces a Stage Plan for the next stage and an updated Business Case for Project Board decision.
Why this answer
The SB process provides the Project Board with information needed to review the current stage, approve the next stage Plan, and assess the continued viability of the project.
Which TWO of the following are correct statements about tailoring PRINCE2?
Simplification is a common tailoring activity.
Why this answer
Option A is correct because PRINCE2 explicitly allows tailoring to simplify processes and documentation to suit the project's needs, ensuring the method remains scalable and practical. This is a core concept of PRINCE2's flexibility, not a deviation from the framework.
Exam trap
PeopleCert often tests the misconception that tailoring allows removing PRINCE2 principles, which is false because principles are mandatory and cannot be tailored away, unlike processes and documentation.
According to PRINCE2, what is the relationship between the principles, practices, and processes?
The principles are embedded in the practices and processes.
Why this answer
The principles are the guiding obligations; the practices provide the management activities; the processes describe the flow of activities. They are integrated and complementary.
Which THREE of the following are common reasons why projects fail, which PRINCE2 addresses?
PRINCE2 requires a clear Business Case.
Why this answer
PRINCE2 addresses lack of stakeholder involvement, unclear objectives, and insufficient planning. It does not address technology failures directly.
What is the difference between a Request for Change (RFC) and an Off-Specification (Off-spec)?
Correct distinction.
Why this answer
An RFC proposes a change to an approved product, while an Off-spec identifies that a product does not meet its specification.
What does PRINCE2 NOT cover?
Correct.
Why this answer
PRINCE2 does not cover HR management; it provides a project management methodology.
Which TWO of the following are benefits of adopting PRINCE2?
Standard processes promote consistency.
Why this answer
Benefits include common terminology and consistency across projects. Option B and C are correct. Option A is false because PRINCE2 does not guarantee success.
Option D is false because it does not eliminate change. Option E is false because it does not guarantee lower costs.
Which PRINCE2 process is triggered by the authorization of an Exception Plan?
Correct. After an Exception Plan is approved, the Project Manager executes it within Controlling a Stage.
Why this answer
An Exception Plan is approved by the Project Board, and the project then returns to the Controlling a Stage process to execute the plan.
Which THREE of the following are integrated elements of PRINCE2?
Correct. The 7 principles are a core element.
Why this answer
The integrated elements are the principles, practices (themes), and processes. Tailoring is how they adapt, but it is not an element itself. The project mandate is an input.
Which TWO of the following are outputs of the Closing a Project process?
During the Starting Up a Project process, what is the role of the Project Manager?
Correct. The PM supports the Executive in Starting Up a Project.
Why this answer
The Project Manager assists the Executive in preparing the Project Brief and other initiation documentation.
A project is forecast to exceed its cost tolerance. According to PRINCE2, what should the Project Manager do?
Escalation via Exception Report is required when a tolerance is forecast to be breached.
Why this answer
When a tolerance is forecast to be exceeded, the Project Manager must escalate to the Project Board via an Exception Report. Option C is correct. This is PRINCE2's management by exception principle.
Which TWO of the following are PRINCE2 principles?
One of the seven PRINCE2 principles.
Why this answer
The two correct principles are 'Manage by Exception' and 'Tailor to suit the project environment'. Options C and E are correct. Option A is not a PRINCE2 principle.
Option B is a practice (theme). Option D is not a principle.
In PRINCE2, what is the difference between Project Assurance and Project Support?
Correct.
Why this answer
Project Assurance is independent oversight; Project Support provides administrative assistance.
Which role is responsible for maintaining the Business Case throughout the project?
The Executive owns and maintains the Business Case.
Why this answer
The Executive (Senior Responsible Owner) owns the Business Case and is responsible for its maintenance.
A project manager is assigned to a new project. The project's business case has been approved, and the project board has authorized the initiation stage. According to PRINCE2, what is the first step the project manager should take?
The Project Plan is the first plan to be created in the initiation stage.
Why this answer
In PRINCE2, once the business case is approved and the initiation stage is authorized, the project manager's first step is to create the Project Plan. This is because the Project Plan provides the detailed schedule, costs, and resource allocations needed to manage the initiation stage effectively, and it is a mandatory management product for the Initiating a Project process. Without the Project Plan, the project manager cannot proceed with other activities like updating the Risk Register or reviewing the Business Case in a structured way.
Exam trap
The trap here is that candidates often confuse the order of activities in the Initiating a Project process, mistakenly thinking that updating the Risk Register or reviewing the Business Case should come first, when PRINCE2 explicitly requires the Project Plan to be created as the initial step after authorization.
How to eliminate wrong answers
Option A is wrong because updating the Risk Register occurs after the Project Plan is created, as risks are identified and assessed during planning, not as the first step. Option B is wrong because the project board is appointed by the project executive before the initiation stage begins, not by the project manager after authorization. Option C is wrong because the Business Case is already approved before the initiation stage is authorized, so reviewing it again is not the first step; the project manager should focus on creating the Project Plan to detail how the stage will be executed.
Which role provides an independent view of the project's progress, ensuring that it is carried out correctly?
Correct. Project Assurance is independent and reports to the Project Board.
Why this answer
Project Assurance is independent of the Project Manager and provides oversight to the Project Board. Project Support is administrative and not independent.
In PRINCE2, which process is triggered by a request from the Project Manager to the Team Manager to deliver a product?
MP is the process for Team Managers to deliver work packages.
Why this answer
The Managing Product Delivery process covers the acceptance and delivery of work packages. Option B is correct. CS includes the request but MP is the Team Manager's process.
DP is for the Project Board. SU is for starting up.
Which document defines the authority and responsibility of the Project Manager?
The Project Brief includes the Project Manager's authority and is approved by the Project Board.
Why this answer
The Project Brief defines the authority and responsibility of the Project Manager because it is created during the Starting Up a Project process and includes the project mandate, which outlines the Project Manager's role, authority levels, and accountability. PRINCE2 explicitly states that the Project Brief contains the project management team structure and role descriptions, making it the definitive document for the Project Manager's authority and responsibility.
Exam trap
PeopleCert often tests the misconception that the Project Initiation Documentation (PID) defines the Project Manager's authority, but the PID is a later, more detailed document that builds on the Project Brief, which actually establishes that authority first.
How to eliminate wrong answers
Option A is wrong because the Project Initiation Documentation (PID) is created during the Initiating a Project process and provides a comprehensive baseline for the project, but it does not define the Project Manager's authority and responsibility; that is established earlier in the Project Brief. Option B is wrong because the Stage Plan details the work, costs, and resources for a specific management stage, not the authority or responsibility of the Project Manager. Option C is wrong because the Work Package is a set of information authorizing work to a Team Manager or team member, defining their authority and responsibility, not the Project Manager's.
A project is forecast to exceed its stage cost tolerance. What should the Project Manager do?
Correct.
Why this answer
When a tolerance is forecast to be exceeded, the Project Manager must escalate to the Project Board via an Exception Report.
In PRINCE2, what is the purpose of the 'Directing a Project' process?
Correct. The Project Board directs the project.
Why this answer
The 'Directing a Project' process in PRINCE2 is designed for the Project Board, not the project manager or team. Its purpose is to empower the Board to make key decisions (e.g., stage boundary approvals, exception plans) and exercise overall control from project initiation through closure, ensuring governance without involvement in day-to-day management.
Exam trap
PeopleCert often tests the misconception that 'Directing a Project' is about tactical management or product creation, when in fact it is exclusively about high-level governance and decision-making by the Project Board.
How to eliminate wrong answers
Option A is wrong because planning and scheduling the next stage is the responsibility of the 'Managing a Stage Boundary' process, not 'Directing a Project'. Option B is wrong because managing day-to-day activities is the purpose of the 'Managing Product Delivery' process, handled by the team manager. Option C is wrong because creating the project's products is the work of the 'Managing Product Delivery' process, executed by the project team, not the Project Board.
What is NOT covered by PRINCE2?
Correct; PRINCE2 does not cover HR.
Why this answer
PRINCE2 is a process-based project management methodology that focuses on business justification, defined roles, and product-based planning. It explicitly covers risk management, business case management, and quality management as core themes, but it does not prescribe detailed human resource management practices; instead, it defines roles and responsibilities within the project management team.
Exam trap
The trap here is that candidates may assume PRINCE2 covers all aspects of project management, including human resource management, because it defines roles and responsibilities, but the exam specifically tests that PRINCE2 does not include detailed HR processes such as staff recruitment, training, or performance management.
How to eliminate wrong answers
Option A is wrong because PRINCE2 includes a dedicated 'Risk' theme that provides a systematic approach to identifying, assessing, and controlling risks throughout the project. Option B is wrong because the 'Business Case' theme is central to PRINCE2, ensuring the project remains viable and aligned with organizational objectives. Option C is wrong because the 'Quality' theme in PRINCE2 defines how quality is planned, controlled, and verified, including product-based quality criteria and quality registers.
Which issue type is used to record a request for a new product or a change to an existing product that has been baselined?
An RFC proposes a change to a baselined product.
Why this answer
In PRINCE2, a Request for Change (RFC) is the correct issue type for recording a proposal for a new product or a modification to a product that has already been baselined (i.e., approved and placed under configuration management). This aligns with the PRINCE2 principle of 'Manage by Stages' and the Change Control approach, where any change to a baselined product must be formally captured as an RFC before being assessed and potentially approved via the change authority.
Exam trap
PeopleCert often tests the distinction between 'Request for Change' and 'Off-specification' by presenting a scenario where a product is already baselined and a modification is needed, leading candidates to mistakenly choose Off-specification because they confuse a change request with a defect report.
How to eliminate wrong answers
Option A (Risk) is wrong because a risk is an uncertain event that could affect the project's objectives, not a formal request to alter a baselined product. Option C (Problem/Concern) is wrong because this issue type is used to record a situation that has occurred and requires management attention, but it is not specifically for requesting a change to a baselined product; it could be a general issue or query. Option D (Off-specification) is wrong because an off-specification records a situation where a product does not meet its specification (a defect or non-conformance), not a request to change an already-approved baseline.
Which TWO of the following are PRINCE2 principles?
During which process is the Project Plan created?
IP produces the PID, which includes the Project Plan.
Why this answer
The Project Plan is created during Initiating a Project.
Which of the following distinguishes a Highlight Report from a Checkpoint Report?
This is the main distinction in terms of audience.
Why this answer
Option D is correct because in PRINCE2, the Highlight Report is a formal report from the Project Manager to the Project Board, providing a summary of progress, risks, and issues at predefined intervals during a stage. The Checkpoint Report is produced by the Team Manager for the Project Manager, detailing progress against the Work Package. This distinction in audience and purpose is a core PRINCE2 principle.
Exam trap
PeopleCert often tests the confusion between the producer and recipient of these reports, especially the misconception that the Checkpoint Report goes to the Project Board or that the Highlight Report is produced by the Team Manager.
How to eliminate wrong answers
Option A is wrong because it reverses the roles: the Checkpoint Report is produced by the Team Manager, while the Highlight Report is produced by the Project Manager. Option B is wrong because the Highlight Report is produced at intervals defined in the stage plan (not necessarily at the end of each stage), and the Checkpoint Report frequency is also defined in the Work Package (not necessarily monthly). Option C is wrong because both reports can include a summary of risks and issues; the Highlight Report always includes a risk summary, but the Checkpoint Report may also include risks relevant to the Work Package.
What is the purpose of the Managing a Stage Boundary process?
Which PRINCE2 principle is being applied when the Project Manager escalates a forecast tolerance deviation to the Project Board?
This principle sets tolerances and escalates when they are forecast to be exceeded.
Why this answer
The 'Manage by Exception' principle is applied when the Project Manager escalates a forecast tolerance deviation to the Project Board. This principle delegates decision-making authority within defined tolerances; only when a deviation is forecast to exceed those tolerances does the Project Manager escalate to the Project Board for a decision. The escalation triggers exception management, ensuring the board retains control at key decision points without micromanaging day-to-day activities.
Exam trap
The trap here is that candidates confuse 'Manage by Exception' with 'Defined Roles and Responsibilities', because escalation involves roles, but the principle specifically governing tolerance-based escalation is 'Manage by Exception', not role definition.
How to eliminate wrong answers
Option A is wrong because 'Defined Roles and Responsibilities' ensures each team member knows their duties and authority levels, but it does not specifically address the escalation of tolerance deviations; that is the function of 'Manage by Exception'. Option B is wrong because 'Learn from Experience' focuses on capturing and applying lessons throughout the project, not on the escalation mechanism for tolerance breaches. Option D is wrong because 'Continued Business Justification' requires ongoing validation that the project remains viable, but it does not prescribe the escalation process for tolerance deviations; that is handled by 'Manage by Exception'.
During the Managing a Stage Boundary process, the Project Manager produces a revised Stage Plan for the next stage. What else must be produced as part of this process?
Correct. The End Stage Report is a mandatory output of Managing a Stage Boundary.
Why this answer
The End Stage Report is produced to provide the Project Board with a summary of progress and to request approval to proceed.
Which THREE of the following are benefits of adopting PRINCE2?
PRINCE2 standardizes terminology.
Why this answer
Option C is correct because PRINCE2 provides a standardized framework with defined roles, responsibilities, and terminology, which ensures all stakeholders (including project board, team managers, and suppliers) share a common language. This reduces misunderstandings and aligns communication across the project lifecycle, directly supporting the principle of 'continued business justification' and 'manage by stages'.
Exam trap
PeopleCert often tests the misconception that PRINCE2 is a silver bullet for speed or risk elimination, but the exam expects candidates to recognize that PRINCE2 is a process-based method for governance and control, not a guarantee of outcomes.
What is the definition of a project according to PRINCE2?
This is the official PRINCE2 definition.
Why this answer
Option B is correct because PRINCE2 defines a project as a temporary organization created to deliver one or more business products according to an agreed Business Case. This definition emphasizes the temporary nature of a project, its focus on outputs (products), and the necessity of a validated Business Case to justify the investment. It distinguishes projects from ongoing operations by highlighting the unique, time-limited structure and the governance provided by the Business Case.
Exam trap
The trap here is that candidates confuse a project with ongoing operations or repetitive tasks, failing to recognize that PRINCE2's core distinction is the temporary, product-focused, and Business Case-driven nature of a project versus the permanent, process-driven nature of operations.
How to eliminate wrong answers
Option A is wrong because it describes a process for managing day-to-day activities, which is characteristic of operations or business-as-usual, not a project. Option C is wrong because it describes a permanent organizational structure that performs ongoing operations, which is the opposite of the temporary organization defined for a project. Option D is wrong because it describes a team that works on repetitive tasks, which aligns with operational work or functional teams, not the unique, temporary, and product-focused nature of a project.
Which TWO of the following are PRINCE2 principles?
Correct.
Why this answer
The seven principles include Manage by Stages and Continued Business Justification. 'Use of Agile' is not a principle.
In PRINCE2, what is the difference between a Request for Change and an Off-specification?
This is the correct distinction.
Why this answer
A Request for Change is a proposal for a change to a product that has been agreed; an Off-specification is something that should be provided but is not or is wrong. Option C is correct. Option A confuses the two.
Option B is incorrect as both are types of issue. Option D is incorrect as both require a change budget if approved.
Which PRINCE2 principle emphasizes that the project must remain desirable, viable, and achievable throughout its life?
Ensures the project remains justified.
Why this answer
The principle 'Continued Business Justification' requires that the business justification (Business Case) is maintained and reviewed. Option B is correct. Option A is about learning from experience.
Option C is about defining roles and responsibilities. Option D is about managing by stages.
Which PRINCE2 principle emphasizes focusing on the justification for the project?
A project is in the Initiating a Project process. Which document describes the products to be delivered and the resources required to deliver them?
The Project Plan describes the products and resources required for the entire project.
Why this answer
The Project Plan is created during IP and provides the detailed plan for the entire project. Option D is correct. The PID is a collection of documents, not a single plan.
The Stage Plan is for a specific stage. The Business Case is for justification.
Who is responsible for maintaining the Business Case throughout the project?
The Executive is responsible for the Business Case.
Why this answer
The Senior User represents the users and is responsible for ensuring the project delivers the required benefits; however, the Executive (Senior Responsible Owner) owns the Business Case. In PRINCE2, the Executive is ultimately accountable for the Business Case, but the Senior User provides input on benefits. The question asks who maintains it, and the correct answer is the Executive.
A Project Board is considering whether to authorize the initiation of a project. Which document should they review?
Correct. The Project Brief is produced in SU and used by the Project Board to decide on initiating.
Why this answer
The Project Brief contains the outline Business Case, project approach, and other information needed for the Project Board to decide whether to proceed to initiation.
Which TWO of the following are PRINCE2 principles?
This is one of the seven PRINCE2 principles.
Why this answer
PRINCE2 principles include 'Learn from Experience' and 'Focus on Products'. Option A and D are correct. Option B is a theme (Risk).
Option C is a process (Directing a Project). Option E is a theme (Progress).
Which of the following is a characteristic of a project according to PRINCE2?
This is the PRINCE2 definition of a project.
Why this answer
Option C is correct. PRINCE2 defines a project as a temporary organization that creates a unique product. Business as usual is ongoing and repetitive, not temporary.
Drag and drop the steps to manage a risk in PRINCE2 into the correct order.
Drag steps to the numbered slots on the right, or tap a step then tap a slot.
Why this order
The PRINCE2 risk management procedure follows: identify, assess, plan responses, implement, and monitor.
Which TWO of the following statements about the Executive role are correct?
The Executive chairs the Project Board.
Why this answer
Option A is correct because the Executive role in PRINCE2 is the chair of the Project Board. The Executive is the ultimate decision-maker for the project, responsible for ensuring the project remains viable and aligned with business objectives. Chairing the Project Board means the Executive leads board meetings, sets the agenda, and ensures decisions are made to authorize key stages and changes.
Exam trap
PeopleCert often tests the distinction between the Executive's strategic accountability and the Project Manager's operational responsibility, leading candidates to confuse who approves Work Packages or manages daily tasks.
Which of the following is a characteristic of a project according to PRINCE2?
Temporary nature with clear start and end.
Why this answer
PRINCE2 defines a project as temporary, with a unique output, and cross-functional. Option D is correct. Option A is false because projects have a defined start and end.
Option B is false because projects are unique. Option C is false because projects involve multiple functions.
Which document is the key output of the Initiating a Project process?
The PID is the comprehensive document that consolidates all initiation information.
Why this answer
The Project Initiation Documentation (PID) is the key output of Initiating a Project.
During the Initiating a Project (IP) process, which document is created to define how the project will be executed, monitored, and controlled?
Correct. The PID contains the Project Plan, Business Case, and other key information.
Why this answer
The Project Initiation Documentation (PID) is the key output of IP. It brings together all the information needed to start the project.
A project is forecast to exceed its cost tolerance. What should the Project Manager do?
Correct; this triggers management by exception.
Why this answer
According to the management by exception principle, exceeding tolerance must be escalated to the Project Board via an Exception Report.
A project is forecast to exceed its cost tolerance. What should the Project Manager do first?
Correct escalation procedure.
Why this answer
According to PRINCE2's management by exception, when a tolerance is forecast to be exceeded, the Project Manager must escalate to the Project Board via an Exception Report.
Which of the following is a characteristic of a project, as defined by PRINCE2?
Correct. A project creates a unique output.
Why this answer
A project is defined as a temporary organization that produces a unique output, with cross-functional teams. The Business Case provides the business justification. 'Derived from business as usual' is not a defining characteristic; projects are temporary and unique.
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