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CCNA PRINCE2 Practices Questions

75 of 674 questions · Page 1/9 · PRINCE2 Practices · Answers revealed

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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.

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2
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.

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3
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.

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4
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.

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5
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).

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6
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.

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7
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.

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8
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.

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9
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.

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10
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.

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11
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.

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12
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.

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13
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.

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14
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.

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15
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.

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16
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.

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17
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.

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18
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.

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19
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.

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20
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.

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21
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.

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22
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.

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23
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.

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24
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.

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25
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.

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26
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.

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27
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.

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28
MCQmedium

A project is using PRINCE2's product-based planning. What is the first step in this approach?

A.Create a product breakdown structure
B.Write a product description for each product
C.Estimate the effort and duration for each activity
D.Sequence the activities required to produce the products
AnswerA

This identifies all products needed before other planning steps.

Why this answer

Product-based planning starts with identifying the products (outputs) required, i.e., creating a Product Breakdown Structure.

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29
MCQeasy

Which role is responsible for ensuring that the project continues to have business justification?

A.Senior Supplier
B.Senior User
C.Executive
D.Project Manager
AnswerC

The Executive is responsible for business justification.

Why this answer

The Executive (Senior Responsible Owner) is accountable for the Business Case and ensuring the project remains justified.

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30
MCQmedium

What is the difference between a Highlight Report and a Checkpoint Report?

A.Highlight Report is from Project Manager to Project Board; Checkpoint Report is from Team Manager to Project Manager
B.Highlight Report is from Team Manager to Project Manager; Checkpoint Report is from Project Manager to Project Board
C.Both are from Project Manager to Project Board
D.Both are from Team Manager to Project Manager
AnswerA

Correct.

Why this answer

A Highlight Report is from the Project Manager to the Project Board; a Checkpoint Report is from the Team Manager to the Project Manager.

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31
MCQhard

During the Controlling a Stage process, the Team Manager reports that a work package is likely to be completed later than planned. The Project Manager assesses that stage tolerances will not be exceeded. What should the Project Manager do?

A.Request a change to the Work Package
B.Update the Project Plan to reflect the delay
C.Raise an Exception Report to the Project Board
D.Take corrective action within the stage tolerance
AnswerD

The PM can manage deviations within tolerance.

Why this answer

Since stage tolerances are not exceeded, the Project Manager can handle the deviation within the stage. Option A is correct.

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32
MCQmedium

During the Controlling a Stage process, the Project Manager identifies that the stage's cost tolerance is forecast to be exceeded. According to PRINCE2, what should the Project Manager do?

A.Increase the stage budget using the change budget and continue with the current Stage Plan
B.Close the project immediately as the Business Case is no longer viable
C.Raise an Exception Report to the Project Board and await their direction before proceeding
D.Continue with the current Stage Plan and report the cost overrun in the next Highlight Report
AnswerC

When a stage tolerance is forecast to be exceeded, the Project Manager must escalate to the Project Board via an Exception Report.

Why this answer

When a stage tolerance is forecast to be exceeded, the Project Manager must escalate immediately to the Project Board via an Exception Report. This is the management by exception principle.

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33
MCQmedium

During the Controlling a Stage process, the Project Manager identifies that the project is forecast to exceed the agreed cost tolerance for the current stage. What should the Project Manager do?

A.Raise an Exception Report to the Project Board and await their direction before proceeding
B.Close the project immediately as the Business Case is no longer viable
C.Continue with the current Stage Plan and report the cost overrun in the next Highlight Report
D.Increase the project budget to absorb the additional cost and continue with the current Stage Plan
AnswerA

This is the correct escalation procedure.

Why this answer

When a stage tolerance is forecast to be exceeded, the Project Manager must escalate to the Project Board via an Exception Report. This is management by exception.

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34
MCQhard

During the Managing a Stage Boundary process, the Project Manager produces an Exception Plan. What triggers the creation of an Exception Plan?

A.The project is closed prematurely
B.The Project Board approves an Exception Report
C.The end of a stage is reached
D.The Project Manager identifies a new risk
AnswerB

An Exception Plan replaces the current stage plan following an Exception Report.

Why this answer

An Exception Plan is created when the Project Board approves an Exception Report, i.e., when a tolerance is forecast to be exceeded.

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35
MCQeasy

Which role is responsible for maintaining the Business Case throughout the project?

A.Senior Supplier
B.Project Manager
C.Project Support
D.Executive
AnswerB

The Project Manager is responsible for maintaining the Business Case throughout the project.

Why this answer

The Project Manager maintains the Business Case on behalf of the Executive (Senior Responsible Owner). The Executive owns the Business Case and is accountable for the business justification, but the Project Manager is responsible for day-to-day maintenance.

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36
Multi-Selectmedium

Which TWO of the following are acceptable responses to a threat (negative risk)?

Select 2 answers
A.Exploit
B.Avoid
C.Reject
D.Transfer
E.Enhance
AnswersB, D

Correct. Avoid is a threat response.

Why this answer

Avoid and Transfer are valid threat responses. Enhance is for opportunities; Reject is for opportunities.

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37
MCQeasy

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

A.Executive
B.Senior User
C.Project Support
D.Project Manager
AnswerD

Correct. The Project Manager maintains the Business Case.

Why this answer

The Project Manager maintains the Business Case on behalf of the Executive. The Executive owns it and ensures it remains viable.

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38
MCQhard

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

A.The risk owner identifies the risk; the risk actionee assesses it
B.There is no difference
C.The risk owner is responsible for the budget; the risk actionee is responsible for the schedule
D.The risk owner is accountable for the risk; the risk actionee performs the response actions
AnswerD

Correct distinction.

Why this answer

The risk owner is accountable for managing the risk and ensuring appropriate responses are implemented; the risk actionee carries out specific actions.

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39
MCQhard

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

A.Plan responses
B.Communicate the risk
C.Assess the risk
D.Implement responses
AnswerC

After identification, the risk is assessed in terms of probability and impact.

Why this answer

The recommended risk management procedure steps are: Identify, Assess, Plan, Implement, Communicate. So after Identify, the next step is Assess (evaluate probability and impact).

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40
Multi-Selectmedium

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

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

A Request for Change is a type of issue.

Why this answer

The PRINCE2 issue types are Request for Change, Off-specification, and Problem/Concern. Threat and opportunity are risk types.

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41
MCQmedium

Which PRINCE2 principle is being applied when the Project Manager escalates an issue that is outside the stage tolerance?

A.Manage by stages
B.Manage by exception
C.Tailor to suit the project environment
D.Continued business justification
AnswerB

Escalation when tolerances are exceeded is management by exception.

Why this answer

Management by exception means that tolerances are delegated; if they are forecast to be exceeded, the issue is escalated to the next management level.

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42
MCQhard

A project is using the 'reduce' response for a threat. What does this mean?

A.The threat is accepted and no action is taken
B.The probability and/or impact of the threat is lowered
C.The threat is avoided by changing the plan
D.The threat is transferred to a third party
AnswerB

Reduce involves proactive measures to decrease probability or impact.

Why this answer

Reduce means taking action to lower the probability or impact of a threat to an acceptable level.

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43
MCQeasy

What is the definition of quality in PRINCE2?

A.The highest possible standard achievable
B.Compliance with ISO 9001
C.Zero defects in all deliverables
D.Fit for purpose
AnswerD

Correct. PRINCE2's definition of quality is 'fit for purpose'.

Why this answer

PRINCE2 defines quality as 'fit for purpose', meaning the product meets the stated requirements and is suitable for its intended use, not necessarily the highest possible standard.

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44
MCQmedium

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

A.A Request for Change proposes a modification to a baselined product; an Off-specification identifies a failure to meet agreed requirements
B.A Request for Change requires approval from the Project Board; an Off-specification requires approval from the Change Authority
C.There is no difference; the terms are interchangeable
D.A Request for Change is always raised by the Project Manager; an Off-specification is raised by the Senior User
AnswerA

This is the correct distinction.

Why this answer

A Request for Change is a proposal for a change to a product that is already baselined, while an Off-specification is something that should have been provided but was not, or is faulty.

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45
Multi-Selecteasy

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

Select 2 answers
A.Preparing the Project Plan
B.Approving the Business Case
C.Providing independent assurance
D.Managing day-to-day project activities
E.Authorizing Work Packages
AnswersA, D

The PM creates the Project Plan.

Why this answer

The Project Manager is responsible for day-to-day management and preparing the Project Plan. Options A and D are correct. Options B, C, and E are not PM responsibilities.

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46
MCQmedium

What is the purpose of the Managing a Stage Boundary process?

A.To plan the entire project before initiation
B.To control day-to-day work during a stage
C.To close the project and evaluate its performance
D.To review the progress of the current stage and request authorization to start the next stage
AnswerD

This is the correct purpose: the Project Board reviews the current stage's results and authorises the next.

Why this answer

Managing a Stage Boundary is the process where the Project Manager prepares the next Stage Plan and updates the Business Case for approval by the Project Board.

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47
MCQmedium

What is the purpose of the Quality Register?

A.To record all quality management activities and their results
B.To record all issues raised during the project
C.To record risks to quality
D.To record lessons learned about quality
AnswerA

Correct. It tracks quality checks and approvals.

Why this answer

The Quality Register records all planned quality activities and their results.

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48
MCQmedium

During the Controlling a Stage process, the Project Manager identifies that the project is forecast to exceed the agreed cost tolerance for the current stage. What should the Project Manager do?

A.Continue with the current Stage Plan and report the cost overrun in the next Highlight Report
B.Close the project immediately as the Business Case is no longer viable
C.Raise an Exception Report to the Project Board and await their direction before proceeding
D.Increase the project budget to absorb the additional cost and continue with the current Stage Plan
AnswerC

Correct action when tolerance is forecast to be exceeded.

Why this answer

When a stage tolerance is forecast to be exceeded, the Project Manager must escalate to the Project Board via an Exception Report. This is management by exception.

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49
MCQmedium

Which level of plan in PRINCE2 is produced during the Initiating a Project process?

A.Exception Plan
B.Team Plan
C.Stage Plan
D.Project Plan
AnswerD

The Project Plan is created during Initiating a Project.

Why this answer

Option A is correct. The Project Plan is created during Initiating a Project. Stage Plans are created during Managing a Stage Boundary; Team Plans are created by the Team Manager; Exception Plans are created when tolerances are exceeded.

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50
Multi-Selectmedium

Which TWO of the following are components of the Business Case?

Select 2 answers
A.Product descriptions
B.Expected benefits
C.Project plan
D.Risk register
E.Major risks
AnswersB, E

Expected benefits are a key component.

Why this answer

The Business Case includes reasons, options, expected benefits, dis-benefits, timescale, costs, investment appraisal, and major risks.

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51
MCQeasy

What is the purpose of the Highlight Report?

A.To report progress from Project Manager to Project Board
B.To close the project
C.To report progress from Team Manager to Project Manager
D.To escalate exceptions from Project Manager to Project Board
AnswerA

The Highlight Report is sent by the Project Manager to the Project Board.

Why this answer

The Highlight Report is a regular report from the Project Manager to the Project Board, providing a summary of progress and exceptions for the last reporting period.

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52
MCQmedium

In PRINCE2, which document is used to record quality activities and their results?

A.Project Plan
B.Quality Register
C.Quality Management Strategy
D.Product Description
AnswerB

The Quality Register records quality activities and outcomes.

Why this answer

The Quality Register is a log of all planned quality checks and their results.

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53
MCQmedium

During the Managing Product Delivery process, the Team Manager identifies a problem with the quality criteria for a work package. What should the Team Manager do?

A.Raise an issue to the Project Manager
B.Escalate directly to the Project Board
C.Reject the work package and stop work
D.Revise the quality criteria and continue
AnswerA

Correct: the Team Manager communicates issues to the Project Manager.

Why this answer

The Team Manager should raise an issue to the Project Manager, who then decides on the appropriate action (e.g., Request for Change or Off-specification).

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54
MCQeasy

In PRINCE2, what does 'fit for purpose' mean in the context of quality?

A.The product is suitable for its intended use
B.The product exceeds customer expectations
C.The product meets all specified requirements exactly
D.The product is free from defects
AnswerA

This is the definition of fit for purpose in PRINCE2.

Why this answer

PRINCE2 defines quality as 'fit for purpose', meaning the product meets its stated requirements and user needs, not necessarily perfection.

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55
MCQmedium

What is the purpose of the Managing a Stage Boundary process?

A.To plan the next stage and review the Business Case
B.To close the project
C.To manage the day-to-day activities of a stage
D.To initiate the project
AnswerA

Correct. The process produces an End Stage Report, next Stage Plan, and updated Business Case.

Why this answer

Managing a Stage Boundary provides the Project Board with information to approve the next stage, review the Business Case, and update the project plan.

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56
MCQhard

In PRINCE2, 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 agreed response
B.The risk owner is always a member of the Project Board; the risk actionee is always a team member
C.The risk owner identifies the risk; the risk actionee assesses it
D.There is no difference; they are the same role
AnswerA

Correct distinction.

Why this answer

The risk owner is responsible for managing the risk overall (monitoring, deciding on responses). The risk actionee is responsible for carrying out a specific risk response action.

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57
MCQhard

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

A.Increase the project budget to absorb the additional cost and continue with the current Stage Plan
B.Continue with the current Stage Plan and report the cost overrun in the next Highlight Report
C.Close the project immediately as the Business Case is no longer viable
D.Raise an Exception Report to the Project Board and await their direction before proceeding
AnswerD

Escalation via Exception Report is the correct action per management by exception.

Why this answer

When a stage tolerance is forecast to be exceeded, the PM must escalate via an Exception Report. The PM cannot unilaterally exceed tolerances.

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58
MCQmedium

Which PRINCE2 plan provides the basis for day-to-day control by the Project Manager?

A.Stage Plan
B.Exception Plan
C.Team Plan
D.Project Plan
AnswerA

The Stage Plan details the work for the current stage and is used for control.

Why this answer

The Stage Plan provides the detailed plan for the current management stage and is used for day-to-day control.

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59
MCQmedium

In PRINCE2, who is responsible for defining the change budget?

A.The Senior User
B.The Change Authority
C.The Project Manager
D.The Project Board
AnswerD

The Project Board sets the change budget as part of project authorisation.

Why this answer

The Project Board approves the change budget as part of the project's risk and change management approach.

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60
Multi-Selectmedium

Which TWO of the following are correct statements about the Project Board?

Select 2 answers
A.The Project Board is accountable for the success of the project
B.The Project Board performs project assurance and project support
C.The Project Board prepares the Stage Plans
D.The Project Board provides unified direction to the project
E.The Project Board is responsible for the day-to-day management of the project
AnswersA, D

The Project Board has overall accountability.

Why this answer

The Project Board is accountable for the project's success, not the day-to-day management (option A). It provides unified direction (option B). Option C is false because the Project Board does not deliver products; the team does.

Option D is false; assurance is separate from management. Option E is false; the Project Board makes decisions but does not prepare plans.

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61
MCQhard

In the risk management procedure, which step includes evaluating risk probability and impact?

A.Assess
B.Implement
C.Identify
D.Plan
AnswerA

The Assess step includes estimation and evaluation of probability and impact.

Why this answer

The 'Assess' step of the risk management procedure includes evaluating risk probability and impact to prioritize risks.

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62
MCQeasy

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

A.The Project Manager
B.The Senior User
C.The Executive (SRO)
D.The Project Board
AnswerA

The Project Manager is responsible for maintaining the Business Case and updating it as needed.

Why this answer

The Project Manager maintains the Business Case on a day-to-day basis, but the Executive (SRO) owns it and is accountable for the business justification.

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63
MCQmedium

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

A.Close the project immediately
B.Increase the project budget and continue
C.Raise an Exception Report to the Project Board
D.Continue and report in the next Highlight Report
AnswerC

This is the correct response per management by exception.

Why this answer

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

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64
MCQmedium

In product-based planning, what does the Product Flow Diagram show?

A.The hierarchical breakdown of all products
B.The sequence and dependencies of products
C.The activities required to create each product
D.The quality criteria for each product
AnswerB

This is the purpose of the Product Flow Diagram.

Why this answer

The Product Flow Diagram shows the order in which products are developed and the dependencies between them.

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65
MCQmedium

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

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

Correct. The PID is created during Initiating a Project.

Why this answer

The Project Initiation Documentation (PID) is the key output of the Initiating a Project process.

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66
MCQmedium

Who is responsible for producing a Checkpoint Report?

A.Project Manager
B.Team Manager
C.Senior User
D.Project Support
AnswerB

Team Managers produce Checkpoint Reports.

Why this answer

Team Managers produce Checkpoint Reports to inform the Project Manager of progress against work packages.

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67
Multi-Selectmedium

Which TWO of the following are types of issue in PRINCE2's Change practice?

Select 2 answers
A.Risk
B.Off-specification
C.Quality defect
D.Exception
E.Request for Change
AnswersB, E

Correct. Off-specification is a type of issue.

Why this answer

PRINCE2 defines three issue types: Request for Change, Off-specification, and Problem/Concern. Options B and D are correct; A, C, and E are not issue types.

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68
MCQhard

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

A.An RFC is related to budget; an Off-spec is related to quality.
B.An RFC proposes a new requirement; an Off-spec describes a problem with an existing product.
C.An RFC is always raised by the Project Manager; an Off-spec is raised by the Senior User.
D.An RFC is a type of issue; an Off-spec is not.
AnswerB

An RFC requests a change to a baselined product; an Off-spec indicates a product does not meet its specification.

Why this answer

An RFC is a request to change a product that has been agreed upon and baselined, whereas an Off-spec is something that should have been provided but is not, or is not meeting specifications. An RFC proposes a change; an Off-spec identifies a deviation.

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69
Multi-Selectmedium

Which TWO of the following are components of the Business Case?

Select 2 answers
A.Expected benefits
B.Product descriptions
C.Configuration item records
D.Investment appraisal
E.Risk register
AnswersA, D

Benefits are a key part of the Business Case.

Why this answer

The Business Case includes expected benefits, costs, risks, etc. Options A and E are correct components. Options B, C, and D are not standard components.

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70
MCQeasy

Which role is responsible for providing assurance that the project is being managed correctly from a business perspective?

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

Project Assurance performs independent oversight on behalf of the Project Board.

Why this answer

Project Assurance is independent of the Project Manager and reports to the Project Board. Business assurance is one aspect of Project Assurance.

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71
MCQeasy

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

A.Executive
B.Project Support
C.Project Manager
D.Senior Supplier
AnswerC

The Project Manager maintains the Business Case on behalf of the Executive.

Why this answer

The Project Manager is responsible for maintaining the Business Case, but the Executive (SRO) owns it and is accountable for it.

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72
Multi-Selecthard

Which TWO statements about tolerances in PRINCE2 are correct?

Select 2 answers
A.Tolerances are only for cost and time
B.Tolerances apply at project level only
C.Tolerances are defined for each management stage
D.Tolerances are set by the Project Manager
E.If a tolerance is forecast to be exceeded, the Project Manager must escalate via an Exception Report
AnswersC, E

Stage tolerances are defined by the Project Board.

Why this answer

Tolerances are defined for each stage by the Project Board, and the Project Manager may only deviate within that tolerance without escalation. They are set for time, cost, scope, quality, risk, and benefits.

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73
MCQhard

During the Closing a Project process, which report is used to evaluate the project's performance against the approved Business Case?

A.End Stage Report
B.Lessons Report
C.Benefits Review Plan
D.End Project Report
AnswerD

The End Project Report reviews overall project performance against the Business Case.

Why this answer

The End Project Report is used to evaluate the project's performance against the Business Case and provide lessons for future projects.

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74
MCQmedium

During the Managing a Stage Boundary process, the Project Manager updates the Project Plan based on the actual results of the completed stage. What is the primary reason for updating the Project Plan?

A.To reflect the actual costs and schedule of the completed stage and revise the plan for the remainder of the project
B.To provide information for the End Project Report
C.To create a detailed plan for the next stage
D.To distribute work packages to teams
AnswerA

Correct. The Project Plan is updated with actual data to maintain an accurate baseline for the whole project.

Why this answer

The Project Plan is updated to reflect actual performance and to provide an updated baseline for the remaining stages. This ensures the plan remains realistic and that the Business Case remains viable.

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75
MCQeasy

Which document is used to capture the quality criteria for a product?

A.Product Description
B.Product Breakdown Structure
C.Project Plan
D.Quality Register
AnswerA

The Product Description includes quality criteria for each product.

Why this answer

The Product Description defines the product's purpose, composition, quality criteria, and quality methods.

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