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CCNA PRINCE2 Practices Questions

75 of 596 questions · Page 1/8 · 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

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

Correct. In PRINCE2, the Risk Owner is accountable for managing the risk and ensuring that the response actions are implemented effectively. The Risk Actionee, on the other hand, is assigned by the Risk Owner to carry out specific actions as part of the risk response.

Why this answer

In PRINCE2, the Risk Owner is accountable for managing the risk and ensuring that the response actions are implemented effectively. The Risk Actionee, on the other hand, is assigned by the Risk Owner to carry out specific actions as part of the risk response. Option B is incorrect because the Risk Owner is appointed during the 'Identify' step, while the Risk Actionee is appointed during the 'Assess' step when response actions are defined.

Option C is incorrect because both identifying and assessing risks are part of risk analysis, not specific to the roles. Option D is incorrect because the Risk Actionee reports to the Risk Owner, not the reverse.

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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
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 is responsible for providing timely feedback on team progress to the Project Manager because the PRINCE2 role description assigns them the specific duty of reporting on actual progress against the Work Package plan. This satisfies the stem’s constraint of “timely feedback” by requiring the Team Manager to escalate deviations or completed deliverables directly, enabling the Project Manager to update the Project Plan and manage stage tolerances.

Why this answer

The Team Manager is responsible for the day-to-day management of the team and must provide timely feedback on team progress to the Project Manager, as defined in the PRINCE2 'Manage Product Delivery' process. This feedback is typically provided via Checkpoint Reports, which the Team Manager produces at intervals agreed with the Project Manager.

Exam trap

The trap here is that candidates often confuse the Team Manager's operational reporting role with the Project Assurance's oversight role, mistakenly thinking that 'Assurance' implies reporting on progress rather than independent compliance checking in PRINCE2.

How to eliminate wrong answers

Option A is wrong because the Senior User represents the interests of those who will use the project's products and is responsible for specifying user requirements, not for providing progress feedback on team activities. Option B is wrong because Project Assurance is an independent monitoring role that checks compliance and viability, but it does not report on team progress; it reports on adherence to standards and tolerances. Option D is wrong because Project Support provides administrative and advisory services, such as maintaining files and tools, but does not manage the team or report on their progress.

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7
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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8
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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9
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

The Project Board includes three mandatory roles: the Executive, the Senior User, and the Senior Supplier. The Executive is accountable for the project's success, and the Senior User represents the interests of those who will use the project's outputs. The Project Manager (option C) manages the project on a day-to-day basis and reports to the Board, but is not a Board member.

The Team Manager (option E) reports to the Project Manager. The Change Authority (option D) is an optional role that may be delegated by the Board to approve change requests, but it is not a core Board role. Therefore, the correct answers are A (Executive) and B (Senior User).

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10
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. It provides a comprehensive baseline that defines the project's scope, objectives, risks, and controls. Option A (Project Brief) is an input to the process, not an output.

Option B (Stage Plan) is created during the Managing a Stage Boundary process. Option D (Benefits Management Approach) is developed during the Initiating a Project process but is part of the PID, not a separate key output. The PID itself is the primary output that brings together all the management products required to initiate the project.

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11
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

In PRINCE2, the risk owner is the person who is accountable for the risk, meaning they are responsible for ensuring that the risk is managed and that appropriate responses are implemented. The risk actionee, on the other hand, is the person who carries out the specific response actions defined in the risk response plan. This distinction ensures clear accountability and task execution within the risk management process.

Exam trap

The trap here is that candidates often confuse accountability with execution, assuming the risk owner also performs the response actions, or they mistakenly think the risk owner must be a senior role like the Project Board, when PRINCE2 allows any appropriate stakeholder to be assigned as risk owner.

How to eliminate wrong answers

Option A is wrong because the risk owner is not necessarily the person who identified the risk; identification can be done by anyone, and the risk owner is assigned later based on accountability. Option B is wrong because the risk owner and risk actionee are distinct roles with different responsibilities—accountability versus execution. Option C is wrong because the risk owner is not always a member of the Project Board; they can be any appropriate stakeholder, and the risk actionee is not always a team member; they can be any person assigned to perform the response actions.

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12
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

A Request for Change (RFC) is a proposal to modify a product that has already been approved and baselined, while an Off-specification (Off-spec) is a formal notification that a product is missing, incomplete, or does not meet its agreed specifications. In PRINCE2, the RFC seeks to change what was agreed, whereas the Off-spec identifies a deviation from what was agreed. This distinction is fundamental to the Change Control Approach and the issue management process.

Exam trap

PRINCE2 candidates often mistakenly think an RFC is only for the Business Case or that only the Project Board can raise issues, when in fact any stakeholder can raise any type of issue. The key differentiator is whether the product is already agreed (RFC) or failing to meet its specification (Off-spec).

How to eliminate wrong answers

Option A is wrong because an RFC can apply to any product, not just the Business Case; the Business Case is one of many products that may be changed via an RFC. Option B is wrong because neither an RFC nor an Off-spec is automatically accepted or rejected; both are subject to the change control process and may be approved, deferred, or rejected by the appropriate authority (e.g., Change Authority or Project Board). Option D is wrong because both an RFC and an Off-spec can be raised by any project stakeholder, not exclusively by the Project Board or Project Manager; the Project Manager often raises Off-specs, but team members, suppliers, or other stakeholders may also raise them.

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13
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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14
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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15
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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16
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, C, E

The Project Plan is a component of the PID as it details the project's schedule, resources, and approach.

Why this answer

The Project Initiation Documentation (PID) is a key PRINCE2 management product that provides a foundation for the project. It typically includes the Project Plan, Business Case, and Project Brief. The Project Plan defines how and when project objectives are achieved; the Business Case justifies the project's viability; and the Project Brief provides the initial context and requirements.

The Risk Register is not part of the PID; rather, the Risk Management Strategy is included in the PID, and the Risk Register is created and maintained during the project as a separate management product.

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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17
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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18
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 (RFC) is a proposal to modify an agreed product, while an Off-specification (Off-spec) is a notification that a product does not meet its specification. In PRINCE2, these are distinct issue types: RFCs seek to change the specification, whereas Off-specs report a deviation from the agreed specification.

Exam trap

The trap here is that candidates confuse the purpose of RFCs and Off-specs, often thinking they are interchangeable or that one is always raised by a specific role, when in fact they are distinct issue types with different triggers and outcomes.

How to eliminate wrong answers

Option A is wrong because both RFCs and Off-specs can be raised by any project stakeholder, not exclusively by the Project Manager or Team Manager. Option B is wrong because RFCs and Off-specs are not synonyms; they serve different purposes in issue management. Option C is wrong because an Off-specification is not always free; it may require a change budget if a corrective action is needed, and a Request for Change does not necessarily require a change budget if it is within the project's contingency.

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19
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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20
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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21
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 in PRINCE2 is a structured assessment process that evaluates whether a product meets its predefined quality criteria. It involves a review meeting where the product's producer presents the product to a team of reviewers, who then identify any defects or deviations from the quality criteria. This ensures that the product is fit for purpose before it is formally approved.

Exam trap

The trap here is that candidates often confuse the Quality Review technique with quality planning or with other management practices like risk management or change control, but the technique is specifically a product assessment activity, not a planning or approval mechanism.

How to eliminate wrong answers

Option B is wrong because identifying risks in the project is the purpose of the Risk Management practice, not the Quality Review technique. Option C is wrong because approving changes to the project scope is handled by the Change Control approach and the Issue and Change Control procedure, not by the Quality Review technique. Option D is wrong because planning quality activities is the purpose of the Quality Management approach and the quality planning process, whereas the Quality Review technique is used to assess products against already-defined quality criteria.

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22
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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23
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 budget is a specific sum of money set aside in the project budget to fund risk responses for identified threats. PRINCE2 mandates that the risk budget is used exclusively for implementing risk responses, not for general contingencies or other project costs.

Exam trap

A common mistake is confusing the Assess step, where risks are assessed and evaluated, with the Plan step, where risk owners and actionees are formally assigned to specific responses.

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24
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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25
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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26
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 is the single point of accountability for the project and is responsible for ensuring that the project continues to have business justification throughout its lifecycle. This includes approving the business case, monitoring its validity, and making the final decision to continue, change, or close the project based on ongoing justification.

Exam trap

The trap here is that candidates often confuse the Project Manager's responsibility for developing and maintaining the business case with the Executive's accountability for approving and ensuring its ongoing validity.

How to eliminate wrong answers

Option A is wrong because the Senior Supplier represents the interests of those providing the project's products and resources, but does not own the business case or have authority to decide on continued business justification. Option B is wrong because the Senior User represents the interests of those who will use the project's outputs and specifies the benefits, but does not hold the ultimate accountability for business justification. Option D is wrong because the Project Manager is responsible for day-to-day management and producing the business case, but the authority to approve and ensure ongoing justification rests with the Executive.

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27
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

In PRINCE2, the Highlight Report is a formal report from the Project Manager to the Project Board, summarizing progress, risks, and issues at a stage level. The Checkpoint Report is a detailed report from the Team Manager to the Project Manager, covering work package progress at a team level. This distinction ensures the right level of detail reaches the appropriate management layer.

Exam trap

The trap here is confusing the reporting direction and audience, as candidates often mix up which report goes to the Project Board versus the Project Manager, leading to a reversal of the correct roles.

How to eliminate wrong answers

Option B is wrong because it reverses the reporting lines: the Highlight Report is from the Project Manager to the Project Board, not from the Team Manager to the Project Manager. Option C is wrong because it incorrectly states both reports are from the Project Manager to the Project Board; the Checkpoint Report is from the Team Manager to the Project Manager. Option D is wrong because it claims both reports are from the Team Manager to the Project Manager; the Highlight Report is from the Project Manager to the Project Board.

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28
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

D is correct because the Project Manager has assessed that the delay will not exceed the stage tolerances set by the Project Board. In PRINCE2, the Project Manager is empowered to take corrective action within stage tolerances without escalating to the Project Board. This ensures the stage remains on track while the Project Manager manages the work package deviation at their level.

Exam trap

The trap here is that candidates often confuse a work package delay with a stage tolerance breach and incorrectly escalate to the Project Board via an Exception Report, failing to recognize that the Project Manager has authority to take corrective action within tolerances.

How to eliminate wrong answers

Option A is wrong because requesting a change to the Work Package is unnecessary; the delay does not require a formal change request as it is within tolerances and the Work Package can be adjusted via corrective action. Option B is wrong because updating the Project Plan is not appropriate at this point; the Project Plan is a high-level document and should only be updated when there is a baseline change, not for minor delays within tolerances. Option C is wrong because an Exception Report is only raised when stage or project tolerances are forecast to be exceeded; since the Project Manager has confirmed tolerances will not be exceeded, escalation to the Project Board is premature and incorrect.

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29
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

According to PRINCE2, when a stage's cost tolerance is forecast to be exceeded, the Project Manager must escalate the issue to the Project Board by raising an Exception Report. This is because the Project Manager does not have authority to exceed the agreed tolerance; the Project Board must decide whether to approve a revised Stage Plan or take other corrective action. Continuing without escalation or making unauthorized adjustments violates the management by exception principle.

Exam trap

The trap here is that candidates may confuse an issue that is within tolerance (handled by the Project Manager) with one that is forecast to exceed tolerance (requiring escalation), or mistakenly think the change budget can be used to cover any cost overrun.

How to eliminate wrong answers

Option A is wrong because the change budget is not intended to cover cost overruns within a stage; it is reserved for authorized changes to scope or quality, and the Project Manager cannot unilaterally increase the stage budget. Option B is wrong because exceeding cost tolerance does not automatically invalidate the Business Case; the Project Board must assess viability before deciding to close the project. Option D is wrong because the Project Manager must escalate issues forecast to exceed tolerance immediately via an Exception Report, not wait for the next Highlight Report, as this would delay necessary corrective action.

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30
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

In PRINCE2, when a Project Manager forecasts that stage tolerances will be exceeded, they must escalate the issue to the Project Board via an Exception Report. This triggers an Exception Plan process, allowing the Board to decide whether to approve revised tolerances or take corrective action. The Project Manager cannot proceed without direction, as tolerances are a delegated authority limit.

Exam trap

The trap here is that candidates often assume the Project Manager can absorb small cost overruns within their delegated authority, but PRINCE2 strictly requires escalation whenever forecast costs exceed the agreed stage tolerance, regardless of the amount.

How to eliminate wrong answers

Option B is wrong because closing the project immediately is a premature decision; the Business Case may still be viable if the cost overrun is manageable or can be offset by benefits. Option C is wrong because continuing with the current Stage Plan and reporting the overrun in the next Highlight Report violates the principle of managing by exception—tolerance breaches require immediate escalation, not deferred reporting. Option D is wrong because the Project Manager has no authority to increase the project budget; budget changes are the Project Board's responsibility and must be formally approved through an Exception Plan.

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31
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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32
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 is responsible for maintaining the Business Case throughout the project because PRINCE2 requires the Business Case to be a living document that is reviewed and updated at each stage boundary. The Project Manager ensures that the project remains viable by monitoring costs, benefits, and risks against the approved Business Case, and escalates any deviations to the Project Board. This role is distinct from the Executive, who owns the Business Case and provides the initial justification, but the day-to-day maintenance and tracking fall to the Project Manager.

Exam trap

PRINCE2 often tests the distinction between ownership and maintenance of the Business Case, where candidates mistakenly choose the Executive because they confuse accountability for the document with the day-to-day responsibility of keeping it updated.

How to eliminate wrong answers

Option A (Senior Supplier) is wrong because the Senior Supplier is responsible for providing supplier resources and ensuring the quality of deliverables, not for maintaining the Business Case. Option C (Project Support) is wrong because Project Support provides administrative and advisory services (e.g., maintaining registers and plans) but does not have the authority or accountability to maintain the Business Case. Option D (Executive) is wrong because the Executive owns the Business Case and is accountable for its approval and ultimate viability, but the day-to-day maintenance and monitoring of the Business Case is delegated to the Project Manager.

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33
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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34
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 is responsible for maintaining the Business Case throughout the project because they manage day-to-day activities, monitor progress against the Business Case, and escalate any deviations to the Project Board. PRINCE2 assigns this operational responsibility to the Project Manager to ensure the Business Case remains viable and aligned with project objectives.

Exam trap

PRINCE2 often tests the distinction between accountability (Executive) and operational responsibility (Project Manager), leading candidates to incorrectly select the Executive because they associate the Business Case with ownership rather than maintenance.

How to eliminate wrong answers

Option A is wrong because the Executive owns the Business Case and is accountable for its creation and approval, but the day-to-day maintenance and monitoring of the Business Case is delegated to the Project Manager. Option B is wrong because the Senior User specifies the user requirements and benefits, but does not maintain the Business Case; their role is to represent user interests and ensure the project delivers expected benefits. Option C is wrong because Project Support provides administrative and advisory services (e.g., maintaining registers, providing configuration management), but does not have the authority or responsibility to maintain the Business Case.

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35
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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36
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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37
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 (RFC) is a type of issue in PRINCE2 because it represents a proposal for a modification to the project’s baselined products, satisfying the constraint that issues must be formally documented and assessed against the project’s tolerances. The RFC triggers the change control procedure, requiring evaluation of its impact on time, cost, quality, scope, and risk before approval or rejection.

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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38
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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39
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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40
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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41
Multi-Selecteasy

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

Select 3 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, E

Correct. The Project Manager prepares the Project Plan.

Why this answer

The Project Manager is responsible for preparing the Project Plan (A), managing day-to-day project activities (D), and authorizing Work Packages (E) within tolerances. Approving the Business Case (B) is the responsibility of the Executive, and providing independent assurance (C) is the role of Project Assurance. Therefore, A, D, and E are correct.

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42
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

The Managing a Stage Boundary process is designed to provide the Project Board with sufficient information to review the current stage's performance, approve the next stage plan, and authorize the project to continue. It ensures that the project remains viable by assessing progress against the business case and updating the project plan accordingly.

Exam trap

The trap here is confusing the Managing a Stage Boundary process with the Controlling a Stage process, as both involve stage-level activities, but only Managing a Stage Boundary handles the formal handover and authorization between stages.

How to eliminate wrong answers

Option A is wrong because planning the entire project before initiation is the purpose of the Initiating a Project process, not Managing a Stage Boundary. Option B is wrong because controlling day-to-day work during a stage is the purpose of the Controlling a Stage process. Option C is wrong because closing the project and evaluating its performance is the purpose of the Closing a Project process.

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43
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 is a PRINCE2 management product used to record all planned quality management activities (such as reviews, inspections, and tests) and their results, including whether each activity was successfully completed or failed. This provides a central log for tracking quality control and assurance throughout the project, ensuring that quality criteria are met and that any non-conformances are documented.

Exam trap

The trap here is that candidates confuse the Quality Register with the Issue Register or Risk Register, because all three are logs used in PRINCE2, but each has a distinct purpose: the Quality Register is solely for tracking quality activities and their outcomes, not for recording problems or risks.

How to eliminate wrong answers

Option B is wrong because the Quality Register records quality activities and results, not issues; issues are recorded in the Issue Register. Option C is wrong because risks to quality are recorded in the Risk Register, not the Quality Register. Option D is wrong because lessons learned about quality are captured in the Lessons Log (or Lessons Report), not the Quality Register.

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44
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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45
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

Project Plan. During the Initiating a Project process, the Project Plan is created to define how and when the project's objectives will be achieved. Stage Plans are created during Managing a Stage Boundary, Team Plans are created by the Team Manager, and Exception Plans are created when tolerances are forecast to be exceeded.

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46
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 PRINCE2 management product used by the Project Manager to provide the Project Board with a summary of progress, achievements, and planned activities for the next reporting period. Its purpose is to keep the Project Board informed so they can make decisions and exercise control, not to escalate issues or report at the team level.

Exam trap

PRINCE2 often tests the distinction between management products by their direction of communication (e.g., Highlight Report is upward to the Board, Checkpoint Report is upward to the Project Manager, Exception Report is for escalations) and candidates confuse the Highlight Report with the Checkpoint Report or Exception Report.

How to eliminate wrong answers

Option B is wrong because closing the project is the purpose of the End Project Report, not the Highlight Report. Option C is wrong because reporting progress from Team Manager to Project Manager is the purpose of the Checkpoint Report, not the Highlight Report. Option D is wrong because escalating exceptions from Project Manager to Project Board is the purpose of the Exception Report, not the Highlight Report.

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47
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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48
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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49
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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50
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

The Managing a Stage Boundary process is designed to provide the Project Board with sufficient information to review the current stage's performance, approve the next stage plan, and reassess the continued viability of the project by reviewing the Business Case. This process occurs at the end of each management stage (except the final one) and ensures that the project remains aligned with its business justification before committing further resources.

Exam trap

PRINCE2 often tests the distinction between the Managing a Stage Boundary process and the Controlling a Stage process, trapping candidates who confuse the end-of-stage review with the day-to-day management activities within a stage.

How to eliminate wrong answers

Option B is wrong because closing the project is the purpose of the Closing a Project process, not Managing a Stage Boundary. Option C is wrong because managing day-to-day activities is the purpose of the Controlling a Stage process, which handles work packages and daily progress. Option D is wrong because initiating the project is the purpose of the Initiating a Project process, which produces the Project Initiation Documentation (PID) and establishes the project's foundation.

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51
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

In PRINCE2, the risk owner is the person who is accountable for the management and monitoring of a specific risk, including ensuring that the agreed response is implemented. The risk actionee, on the other hand, is the person assigned to carry out the specific risk response actions. This separation of accountability and execution is a key governance principle in PRINCE2's risk management practice.

Exam trap

The trap here is that candidates often confuse the risk owner with the risk actionee, assuming they are interchangeable or that the owner must be a senior manager, when PRINCE2 explicitly separates accountability (owner) from execution (actionee) to ensure clear governance.

How to eliminate wrong answers

Option B is wrong because the risk owner is not required to be a member of the Project Board; they can be any stakeholder with the appropriate authority and knowledge, while the risk actionee is not always a team member but could be any person assigned to perform the response. Option C is wrong because risk identification and assessment are separate activities typically performed by the project manager or risk specialist, not specifically the risk owner or risk actionee. Option D is wrong because the risk owner and risk actionee are distinct roles with different responsibilities: the owner is accountable for the risk, while the actionee executes the response.

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52
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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53
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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54
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 is responsible for maintaining the Business Case throughout the project because they manage day-to-day activities, monitor progress against the Business Case, and update it when changes occur. PRINCE2 assigns this responsibility to the Project Manager to ensure the Business Case remains viable and reflects current project realities. The Project Manager prepares and updates the Business Case for approval by the Project Board, but the ongoing maintenance is their duty.

Exam trap

The trap here is that candidates confuse the Executive's ownership and approval authority with the Project Manager's responsibility for maintaining the document, leading them to select the Executive (SRO) instead of the Project Manager.

How to eliminate wrong answers

Option B is wrong because the Senior User represents the users' interests and specifies benefits, but they do not maintain the Business Case; they provide input on benefits realization. Option C is wrong because the Executive (SRO) is the ultimate owner of the Business Case and approves it, but the day-to-day maintenance is delegated to the Project Manager. Option D is wrong because the Project Board makes key decisions and approves the Business Case, but they are not responsible for its ongoing maintenance; that is a Project Manager role.

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55
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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56
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 in PRINCE2 product-based planning shows the sequence in which products are developed and the dependencies between them. It is a key technique for identifying the order of creation and the relationships among products, which is essential for planning the project's activities and stages.

Exam trap

The trap here is that candidates often confuse the Product Flow Diagram with the Product Breakdown Structure (PBS), mistakenly thinking the flow diagram shows a hierarchy rather than sequence and dependencies.

How to eliminate wrong answers

Option A is wrong because the hierarchical breakdown of all products is shown in the Product Breakdown Structure (PBS), not the Product Flow Diagram. Option C is wrong because the activities required to create each product are detailed in the activity network or project plan, not in the Product Flow Diagram. Option D is wrong because the quality criteria for each product are defined in the Product Description, not in the Product Flow Diagram.

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57
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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58
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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59
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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60
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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61
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 throughout the project because PRINCE2 requires the Business Case to be a living document that is reviewed and updated at each stage boundary. The Project Manager ensures that the Business Case remains viable by monitoring costs, benefits, and risks against the approved baseline, and escalates any deviations to the Project Board. This ongoing maintenance is a key project management responsibility, distinct from the Executive's ownership of the Business Case's justification.

Exam trap

The trap here is that candidates confuse the Executive's accountability for the Business Case with the Project Manager's responsibility for its maintenance, leading them to incorrectly select the Executive as the answer.

How to eliminate wrong answers

Option A is wrong because the Executive owns the Business Case and is accountable for its justification, but the day-to-day maintenance and update of the document is delegated to the Project Manager. Option B is wrong because Project Support provides administrative and clerical assistance, such as filing and version control, but does not have the authority or responsibility to maintain the Business Case's content or viability. Option D is wrong because the Senior Supplier is responsible for providing the project's products and ensuring supplier interests are met, not for maintaining the Business Case, which is a management product.

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62
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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63
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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64
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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65
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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66
Multi-Selectmedium

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

Select 2 answers
A.Produce the Project Initiation Documentation
B.Maintain the Business Case
C.Authorize Stage Plans
D.Provide overall direction and control of the project
E.Manage risks on a day-to-day basis
AnswersC, D

The Project Board authorizes stage plans and any deviations from tolerances.

Why this answer

Options C and D are correct. The Project Board is responsible for authorizing stage plans and providing overall direction and control of the project. Option A is incorrect because producing the Project Initiation Documentation is a Project Manager responsibility.

Option B is incorrect because maintaining the Business Case is the Executive's role on behalf of the Board. Option E is incorrect because managing risks on a day-to-day basis is the Project Manager's role.

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67
MCQeasy

What is the definition of quality in PRINCE2?

A.Conformance to specification
B.Customer satisfaction
C.Zero defects
D.Fit for purpose
AnswerD

Correct. This is the PRINCE2 definition.

Why this answer

In PRINCE2, quality is defined as 'fit for purpose,' meaning the product must meet the stated user needs and expectations within the project's scope. This definition aligns with the PRINCE2 principle of continued business justification, ensuring that deliverables provide value by satisfying their intended use. Unlike conformance to specification, which focuses solely on meeting documented requirements, 'fit for purpose' emphasizes that the product must actually work in its operational environment.

Exam trap

The trap here is that candidates often confuse 'conformance to specification' (a common ISO 9000 definition) with PRINCE2's 'fit for purpose,' leading them to select Option A, but PRINCE2 prioritizes user needs over strict specification adherence.

How to eliminate wrong answers

Option A is wrong because 'conformance to specification' is a narrower, manufacturing-focused definition that does not account for whether the product meets user needs or is usable in context, which PRINCE2 requires. Option B is wrong because 'customer satisfaction' is an outcome of quality but not its formal definition in PRINCE2; the framework defines quality in terms of the product's fitness for its stated purpose, not subjective satisfaction. Option C is wrong because 'zero defects' is a quality control target from total quality management (TQM) and is not the PRINCE2 definition; PRINCE2 acknowledges that acceptable quality may include tolerances for defects based on cost and time constraints.

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68
MCQmedium

A project is in the Initiating a Project process. The Project Manager is creating the Project Initiation Documentation. Which plan should be produced during this process?

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

The Project Plan is produced during the Initiating a Project process and is part of the PID.

Why this answer

The Project Plan is created during the Initiating a Project process. Stage Plans are created during Managing a Stage Boundary. Team Plans are created by team managers as required.

Exception Plans are created in response to an exception.

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69
MCQmedium

Which PRINCE2 document provides the Project Board with a summary of the stage's progress, including achievements, issues, and forecasts, at regular intervals during a stage?

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

Correct. The Highlight Report is the regular progress report from PM to Project Board.

Why this answer

The Highlight Report is prepared by the Project Manager and sent to the Project Board at regular intervals (e.g., weekly) to provide a summary of stage progress, including achievements, issues, and forecasts.

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70
Multi-Selecthard

Which THREE of the following are components of the PRINCE2 quality management approach?

Select 3 answers
A.Quality control methods (e.g., quality review technique)
B.Roles and responsibilities for quality
C.Project Plan
D.Quality standards and procedures to be applied
E.Quality Register
AnswersA, B, D

Methods are defined in the approach.

Why this answer

The Quality Management Approach includes standards, quality control methods, and quality assurance. The Quality Register is a separate document, not part of the approach. The Project Plan is also separate.

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71
MCQhard

In PRINCE2, what is the primary purpose of the Product Breakdown Structure (PBS)?

A.To show the dependencies between products
B.To identify all products that must be produced by the project
C.To define the quality criteria for each product
D.To show the order in which products will be created
AnswerB

The PBS is a hierarchical chart of all products.

Why this answer

The PBS is used to identify all the products that need to be created, providing a hierarchical decomposition of the project's outputs. Option A is wrong because the Product Flow Diagram shows the sequence. Option C is wrong because the PBS does not show dependencies; that is the Product Flow Diagram.

Option D is wrong because quality criteria are documented in Product Descriptions.

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72
Multi-Selectmedium

Which TWO of the following are typical roles in the Project Board?

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

Correct. The Senior Supplier is a Project Board role.

Why this answer

The Project Board is the PRINCE2 management layer responsible for overall project direction and decision-making. The Executive represents the business interests and is the ultimate decision-maker, while the Senior Supplier represents the interests of those providing the project's products or services. These are two of the three primary Project Board roles, the third being the Senior User.

Exam trap

The trap here is that candidates often confuse the Project Manager as a member of the Project Board, but PRINCE2 explicitly separates the 'directing' level (Project Board) from the 'managing' level (Project Manager), and the Project Manager reports to the Board, not sits on it.

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73
MCQeasy

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

A.The Executive (Senior Responsible Owner)
B.The Project Manager
C.The Project Support
D.The Senior User
AnswerB

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

Why this answer

In PRINCE2, the Project Manager is responsible for maintaining the Business Case throughout the project. This includes monitoring the project's viability against the Business Case, updating it with actual costs and benefits, and escalating any deviations to the Project Board. The Project Manager ensures the Business Case remains valid and aligned with the project's objectives.

Exam trap

Candidates often confuse accountability with responsibility, mistakenly assigning the maintenance of the Business Case to the Executive instead of the Project Manager. In PRINCE2, the Executive is accountable for the Business Case, but the Project Manager is responsible for its day-to-day maintenance and monitoring.

How to eliminate wrong answers

Option A is wrong because the Executive (Senior Responsible Owner) is accountable for the Business Case and its approval, but not for its day-to-day maintenance. Option C is wrong because Project Support provides administrative and configuration management services, not ownership or maintenance of the Business Case. Option D is wrong because the Senior User represents the users' interests and specifies benefits, but does not maintain the Business Case itself.

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74
MCQmedium

What is the purpose of the Quality Review Technique?

A.To assess whether a product is complete and fit for purpose
B.To approve the project's quality management approach
C.To assign quality responsibilities to team members
D.To identify all quality control activities in the project
AnswerA

The review ensures the product meets its defined quality criteria.

Why this answer

The Quality Review Technique is a team-based review to assess whether a product meets its quality criteria.

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75
MCQeasy

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

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

The Project Manager maintains the Business Case under the direction of the Executive.

Why this answer

In PRINCE2, the Project Manager is responsible for maintaining the Business Case throughout the project. This includes monitoring the Business Case against the project's progress and updating it as necessary to ensure it remains viable and aligned with the project's objectives. The Project Manager does this by regularly reviewing the Business Case and reporting any changes or deviations to the Project Board.

Exam trap

A common pitfall in PRINCE2 is confusing accountability (Executive) with responsibility (Project Manager) for the Business Case. Candidates often incorrectly choose the Executive as the maintainer.

How to eliminate wrong answers

Option B is wrong because the Project Board is responsible for approving the Business Case and making key decisions, but not for its day-to-day maintenance. Option C is wrong because the Executive is the owner of the Business Case and is accountable for its content, but the actual maintenance task is delegated to the Project Manager. Option D is wrong because the Senior User represents the users' interests and provides requirements, but does not maintain the Business Case.

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