CCNA Overview of PRINCE2 and the project environment Questions — Page 3 of 3

151

Multi-Selecthard

Which THREE of the following are characteristics of a project according to PRINCE2?

Select 3 answers

A.Permanent organization

B.Repetitive processes

C.Cross-functional teams

D.Temporary

E.Unique output

AnswersC, D, E

Projects involve people from different functions.

Why this answer

Projects are temporary, have a unique output, and involve cross-functional teams. Options A, B, and D are correct. Option C is a characteristic of business as usual.

Option E is false; projects are not permanent.

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152

Multi-Selectmedium

Which THREE of the following are PRINCE2 practices (themes)?

Select 3 answers

A.Waterfall

B.Risk

C.Sprint Planning

D.Quality

E.Business Case

AnswersB, D, E

Correct.

Why this answer

Business Case, Risk, and Quality are themes. PRINCE2 has seven themes.

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153

MCQeasy

Which of the following is NOT a PRINCE2 principle?

A.Manage by risks

B.Manage by stages

C.Focus on products

D.Continued business justification

AnswerA

Risk management is a theme, not a principle.

Why this answer

The seven principles are: Continued business justification, Learn from experience, Defined roles and responsibilities, Manage by stages, Manage by exception, Focus on products, Tailor to suit the project environment.

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154

MCQeasy

Which PRINCE2 process is triggered by the Project Mandate and produces the Project Brief?

A.Managing a Stage Boundary

B.Directing a Project

C.Initiating a Project

D.Starting Up a Project

AnswerD

Correct. SU produces the Project Brief from the Project Mandate.

Why this answer

Starting Up a Project (SU) is the pre-project process that takes the Project Mandate and develops the Project Brief.

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155

Multi-Selectmedium

Which TWO of the following are PRINCE2 practices (themes)?

Select 2 answers

A.Managing a Stage Boundary

B.Directing a Project

C.Starting Up a Project

D.Risk

E.Business Case

AnswersD, E

Risk is a theme.

Why this answer

The seven themes are: Business Case, Organization, Quality, Plans, Risk, Change, Progress.

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156

MCQmedium

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

A.Close the project

B.Continue and report later

C.Raise an Exception Report

D.Increase the project budget

AnswerC

The PM must escalate to the Project Board.

Why this answer

The PM must escalate via an Exception Report to the Project Board.

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157

MCQmedium

What is the difference between a Request for Change and an Off-specification in PRINCE2?

A.A Request for Change is raised by the Project Manager; an Off-specification is raised by the Team Manager

B.A Request for Change is always urgent; an Off-specification is not

C.A Request for Change proposes a change to a product; an Off-specification indicates that a product does not meet its specification

D.There is no difference; they are synonymous

AnswerC

Correct. This is the key distinction.

Why this answer

A Request for Change is a proposed modification to a product, while an Off-specification is a product that does not meet its specification.

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158

MCQeasy

Which principle of PRINCE2 is being applied when a project is divided into management stages?

A.Manage by exception

B.Focus on products

C.Learn from experience

D.Manage by stages

AnswerD

This principle requires dividing the project into stages.

Why this answer

Option B is correct. The principle 'Manage by stages' states that a project should be planned, monitored, and controlled on a stage-by-stage basis. 'Manage by exception' is about tolerances.

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159

Multi-Selectmedium

Which THREE of the following are benefits of adopting PRINCE2?

Select 3 answers

A.Better control of resources

B.Increased project duration

C.Improved stakeholder management

D.Clear focus on business justification

E.Common language across projects

AnswersA, D, E

Structured processes improve resource management.

Why this answer

PRINCE2 provides a common language, control of resources, and a focus on business justification.

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160

MCQhard

A Project Manager receives a Team Plan from a Team Manager. Which process should the Project Manager use to incorporate this into the overall project?

A.Managing a Stage Boundary

B.Controlling a Stage

C.Directing a Project

D.Managing Product Delivery

AnswerB

Correct. During CS, the Project Manager authorizes work packages and incorporates their plans.

Why this answer

The Controlling a Stage (CS) process is where the Project Manager authorizes work packages, monitors progress, and handles issues. The Team Plan is part of the work package assignment, so it is used in CS.

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161

MCQhard

In PRINCE2, what is the difference between tailoring and embedding?

A.Tailoring is done by the Project Board; embedding is done by the Project Manager

B.They are the same thing

C.Tailoring adapts PRINCE2 to a specific project; embedding incorporates PRINCE2 into the organization's culture

D.Tailoring is for large projects; embedding is for small projects

AnswerC

This is the correct distinction.

Why this answer

Option C is correct. Tailoring is adapting PRINCE2 to the project's specific context. Embedding is integrating PRINCE2 into the organization's management system.

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162

MCQmedium

A project is in the initiation stage. The project manager identifies that the project's objectives are not aligned with the corporate strategy. Which management product should the project manager review to address this issue?

A.Project Brief

B.Risk Register

C.Business Case

D.Project Plan

AnswerA

The Project Brief outlines the project's objectives and should align with corporate strategy.

Why this answer

The Project Brief is the correct management product to review because it contains the high-level project definition, including the project objectives and how they align with corporate strategy. During the initiation stage, if the objectives are misaligned, the Project Brief provides the basis for reassessing the project's justification and strategic fit before proceeding further.

Exam trap

The trap here is that candidates often confuse the Business Case with the Project Brief, but the Business Case is developed later in the initiation stage and does not serve as the initial check for strategic alignment.

How to eliminate wrong answers

Option B is wrong because the Risk Register is a log of identified risks and their management actions, not a document that defines or aligns project objectives with corporate strategy. Option C is wrong because the Business Case focuses on the project's justification and benefits, but it is derived from the Project Brief and does not itself contain the initial strategic alignment check. Option D is wrong because the Project Plan details how the project will be executed, including timelines and resources, but it does not address the alignment of objectives with corporate strategy.

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163

MCQmedium

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:

A.Request a budget increase and complete the project

B.Continue as planned but monitor costs more tightly

C.Recommend closure of the project because the business case is no longer viable

D.Proceed with an exception plan without board approval

AnswerC

PRINCE2 requires ongoing business case validation; if the project cannot deliver benefits within tolerance, closure is appropriate.

Why this answer

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.

Exam trap

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.

How to eliminate wrong answers

Option A is wrong because requesting a budget increase without reassessing the business case ignores the fundamental PRINCE2 principle of continued business justification; the board must first determine if the revised costs still deliver acceptable benefits. Option B is wrong because continuing as planned with tighter cost monitoring does not address the severe budget overrun (95% spent for 40% scope) and violates the principle of managing by stages, as the current stage is already out of tolerance. Option D is wrong because an exception plan must be approved by the project board; proceeding without board approval bypasses the PRINCE2 control process and the board's authority to decide the project's fate.

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164

Multi-Selectmedium

Which TWO of the following are PRINCE2 principles?

Select 2 answers

A.Tailor to suit the project environment

B.Focus on products

C.Manage by phases

D.Document everything

E.Assign all roles to one person

AnswersA, B

This is a PRINCE2 principle.

Why this answer

Option A is correct because 'Tailor to suit the project environment' is one of the seven PRINCE2 principles. This principle requires that the method be adapted to the specific context, complexity, size, and risk of the project, ensuring the framework remains relevant and practical without unnecessary overhead.

Exam trap

PeopleCert often tests the distinction between PRINCE2 principles and themes, so the trap here is that 'Manage by phases' sounds like a principle but is actually a misinterpretation of the 'Manage by stages' principle, and 'Document everything' seems logical but is not a formal principle.

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