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CCNA PRINCE2 Practices Questions

75 of 674 questions · Page 2/9 · PRINCE2 Practices · Answers revealed

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76
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 A and C are correct. The Project Board is responsible for authorizing stage plans and providing overall direction. Option B is incorrect because producing the PID is a Project Manager responsibility.

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

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77
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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78
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

Option B is correct. 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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79
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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80
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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81
MCQeasy

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

A.To enable the Project Board to review the current stage and authorize the next stage
B.To enable the Project Manager to plan the initiation stage
C.To enable the Project Board to give overall direction and control of the project
D.To enable the Project Manager to monitor and control the work of the current stage
AnswerA

This is the correct purpose of the Managing a Stage Boundary process.

Why this answer

Option A is correct. The Managing a Stage Boundary process provides the Project Board with sufficient information to review the current stage, approve the next Stage Plan, and authorize continued work. Option B is incorrect because that describes Controlling a Stage.

Option C is incorrect because that describes Directing a Project. Option D is incorrect because that describes Initiating a Project.

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82
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

Option B is correct. 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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83
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 consists of the Executive, Senior User, and Senior Supplier. Senior Supplier is part of the Board; Project Manager is not on the Board.

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84
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

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

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85
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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86
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

The Executive owns the Business Case and is accountable for it, but the Project Manager maintains it on a day-to-day basis. Option D is correct.

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87
Multi-Selectmedium

Which THREE of the following are outputs of the Initiating a Project process?

Select 3 answers
A.Business Case (updated)
B.Project Plan
C.Highlight Report
D.Risk Management Approach
E.Lessons Report
AnswersA, B, D

The Business Case is updated and approved in IP.

Why this answer

The Initiating a Project process produces the Project Initiation Documentation (PID), which includes the Project Plan, Business Case (updated), and various management approaches. The Highlight Report is produced during Controlling a Stage, and the Lessons Report is produced in Closing a Project.

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88
MCQeasy

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

A.The Senior User
B.The Project Board
C.The Project Manager
D.The Senior Supplier
AnswerC

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

Why this answer

The Project Manager maintains the Business Case, but the Executive (SRO) is the owner and accountable for it. The question asks who maintains it, so option C is correct. The Senior User defines benefits, and the Senior Supplier provides resources.

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89
MCQmedium

In PRINCE2, what is the purpose of the Managing a Stage Boundary process?

A.To close the project and hand over products
B.To authorize the initiation of the project
C.To manage the work of the current stage and report progress
D.To plan the next stage and seek Project Board approval
AnswerD

This is the core purpose of Managing a Stage Boundary.

Why this answer

The purpose of the Managing a Stage Boundary process is to provide the Project Board with sufficient information to review the current stage's performance, approve the next stage plan, and confirm continued business justification.

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90
MCQmedium

When is the Business Case formally reviewed and confirmed?

A.During the Closing a Project process
B.Only at the start of the project
C.At the end of each management stage
D.Only when an exception occurs
AnswerC

Correct: at stage boundaries the Business Case is reviewed for continued viability.

Why this answer

The Business Case is developed in pre-project, approved at initiation, and reviewed at each stage boundary.

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91
MCQeasy

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

A.The Project Support
B.The Senior User
C.The Project Manager
D.The Executive (SRO)
AnswerC

Correct. The Project Manager maintains the Business Case, ensuring it reflects current information.

Why this answer

The Project Manager is responsible for maintaining the Business Case, ensuring it remains viable and up to date. The Executive (SRO) owns the Business Case and is accountable for it, but the PM does the day-to-day maintenance.

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92
MCQmedium

Which document describes the quality expectations and standards for the project?

A.Quality Management Approach
B.Quality Management Strategy
C.Project Plan
D.Project Product Description
AnswerA

Correct. It sets out quality standards and procedures.

Why this answer

The Quality Management Approach (A) is the PRINCE2 document that defines the specific quality methods, standards, and responsibilities to be used during the project. It describes how quality will be managed, including the quality expectations, quality criteria, and the quality control and assurance activities that will be applied. This is distinct from the higher-level strategy or the product-focused descriptions.

Exam trap

The trap here is confusing the project-level 'Quality Management Approach' with the corporate-level 'Quality Management Strategy', as candidates often think the strategy document contains the project's specific quality expectations, but PRINCE2 separates strategic policy from tactical implementation.

How to eliminate wrong answers

Option B (Quality Management Strategy) is wrong because the Quality Management Strategy is a corporate or programme-level document that sets the overall quality policy and standards for the organization, not the project-specific quality expectations and standards. Option C (Project Plan) is wrong because the Project Plan describes the time, cost, and resource baselines for the project, not the detailed quality expectations and standards. Option D (Project Product Description) is wrong because it describes the final product's purpose, composition, and acceptance criteria, but it does not define the project's overall quality expectations and standards for all deliverables.

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93
Multi-Selectmedium

Which THREE of the following are responsibilities of the Project Manager during the Managing a Stage Boundary process?

Select 3 answers
A.Update the Business Case
B.Produce the Project Plan
C.Create the next Stage Plan
D.Produce the End Stage Report
E.Approve the next Stage Plan
AnswersA, C, D

The PM updates the Business Case with actuals and re-evaluates viability at stage boundaries.

Why this answer

Options A, D, and E are correct. The PM produces the End Stage Report, updates the Business Case, and creates the next Stage Plan. The PM does not approve the Stage Plan (Project Board does) and does not produce the Project Plan (done in Initiating a Project).

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94
MCQeasy

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

A.The Executive (Senior Responsible Owner)
B.The Senior Supplier
C.The Project Support office
D.The Project Manager
AnswerD

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

Why this answer

In PRINCE2, the Executive (Senior Responsible Owner) owns the Business Case, but the Project Manager is responsible for maintaining it on a day-to-day basis. The Project Board reviews and approves it at key decision points.

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95
MCQhard

Which TWO statements correctly describe the difference between a Request for Change (RFC) and an Off-specification?

A.An Off-specification is a failure to meet a requirement; an RFC is a suggestion to add or change a requirement.
B.An RFC proposes a change that is not currently specified; an Off-specification indicates a required product is missing or incorrect.
C.An RFC always results in a change budget increase; an Off-specification always results in a decrease.
D.An RFC can be rejected by the Change Authority; an Off-specification must always be accepted.
AnswerA, B

Correct. This accurately describes the nature of each type of issue.

Why this answer

An RFC is a proposal for a modification that is not currently required, while an Off-specification is something that is missing or deviating from the agreed specification. Option A is correct because an RFC suggests something new; option C is correct because an Off-specification indicates a failure to meet a requirement. Option B is incorrect because Off-specifications are not always beneficial; they are deviations.

Option D is incorrect because both RFCs and Off-specifications require formal change control.

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96
MCQmedium

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

A.Update the Business Case to reflect the new costs
B.Raise an Exception Report to the Project Board
C.Continue as planned and inform the Project Board in the next Highlight Report
D.Use the risk budget to cover the extra cost
AnswerB

The Project Manager should raise an Exception Report to the Project Board for decision.

Why this answer

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

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97
Multi-Selecthard

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

Select 3 answers
A.Off-specification
B.Problem/Concern
C.Request for Change
D.Risk
E.Exception
AnswersA, B, C

Correct.

Why this answer

The three issue types are: Request for Change, Off-specification, and Problem/Concern.

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98
MCQmedium

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

A.Project Brief
B.Project Plan
C.Business Case
D.Project Initiation Documentation (PID)
AnswerD

Correct. 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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99
MCQeasy

Which PRINCE2 practice describes the management of product versions and baselines?

A.Progress
B.Change
C.Risk
D.Quality
AnswerB

Correct. Configuration management is part of the Change practice.

Why this answer

The Change practice includes configuration management, which handles product version control and baselines.

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100
Multi-Selecthard

Which TWO statements are true about the quality review technique in PRINCE2?

Select 2 answers
A.It is the same as quality assurance
B.It involves a chair, presenter, and reviewers
C.It is used for all products in a project
D.The objective is to assess the product against its quality criteria
E.It replaces the need for quality planning
AnswersB, D

These are the three roles in a quality review.

Why this answer

The quality review technique is a structured review of a product against its quality criteria. It involves a chair, presenter, and reviewers. It is not used for all products (some may use other methods) and is not the same as quality assurance (which is broader).

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101
MCQmedium

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

A.An RFC is always approved by the Project Board; an Off-spec is approved by the Project Manager
B.There is no difference; they are synonyms
C.An Off-spec is always a fault; an RFC is always an enhancement
D.An RFC is a request for something new not in the baseline; an Off-spec is a failure to meet the baseline
AnswerD

This is the key distinction.

Why this answer

An RFC proposes a change that has not been previously specified, while an Off-spec is something that should be provided but is not or is wrong.

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102
MCQeasy

Which register is used to record all issues that are raised during the project?

A.Risk Register
B.Quality Register
C.Configuration Item Records
D.Issue Register
AnswerD

The Issue Register is the correct register for recording all types of issues.

Why this answer

Option C is correct. The Issue Register records all issues, including requests for change, off-specifications, and problems/concerns. Option A is incorrect because the Risk Register records risks.

Option B is incorrect because the Quality Register records quality activities. Option D is incorrect because the Configuration Item Records track configuration items, not issues.

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103
MCQhard

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

A.An RFC is a proposal for a change to a baseline, while an off-specification is a product that does not meet its specification
B.An RFC is a type of issue, while an off-specification is not
C.An RFC is recorded in the Issue Register, while an off-specification is recorded in the Quality Register
D.An RFC can be approved by the Change Authority, while an off-specification must be approved by the Project Board
AnswerA

This is the correct distinction: RFC proposes change; off-specification is a deviation from what was agreed.

Why this answer

Option C is correct. An RFC is a proposal for a change to baseline products, while an off-specification is something that should be provided but is not (or is wrong). Option A is incorrect because both are types of issues.

Option B is incorrect because both require a decision. Option D is incorrect because both are recorded in the Issue Register.

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104
MCQeasy

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

A.Business Case
B.Project Brief
C.Stage Plan
D.Project Initiation Documentation
AnswerD

The PID is the key output of Initiating a Project.

Why this answer

The Project Initiation Documentation (PID) is assembled during Initiating a Project and provides a firm foundation for the project.

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105
MCQeasy

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

A.Senior User
B.Project Manager
C.Executive
D.Project Assurance
AnswerB

The Project Manager is responsible for maintaining the Business Case on behalf of the Executive.

Why this answer

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

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106
Multi-Selectmedium

Which TWO statements about PRINCE2's management by exception are correct?

Select 2 answers
A.Tolerances apply only to time and cost
B.The Project Manager sets the project's tolerances
C.If a tolerance is forecast to be exceeded, the Project Manager must escalate
D.The Project Board is involved in all day-to-day decisions
E.The Project Manager can make decisions within agreed tolerances
AnswersC, E

Correct: escalation via Exception Report is required.

Why this answer

Management by exception means delegating authority within tolerances and escalating when tolerances are forecast to be exceeded.

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107
MCQmedium

In the PRINCE2 risk management procedure, who is responsible for implementing a risk response?

A.Project Manager
B.Risk owner
C.Risk actionee
D.Project Board
AnswerC

The risk actionee is responsible for implementing the risk response.

Why this answer

Option D is correct. The risk actionee is responsible for implementing the agreed response. The risk owner owns the risk and manages the response, but the actionee actually carries out the actions.

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108
MCQeasy

Which role is responsible for ensuring that the project provides value for money and is accountable for the Business Case?

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

The Executive is accountable for the Business Case and ensuring value for money.

Why this answer

The Executive (Senior Responsible Owner) is the single point of accountability for the Business Case and ensuring value for money. The Project Manager manages the project but is not accountable. The Senior User and Senior Supplier are part of the Project Board but not accountable for the Business Case.

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109
MCQeasy

What is the definition of quality in PRINCE2?

A.Customer satisfaction
B.Conformance to requirements
C.Fit for purpose
D.Zero defects
AnswerC

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

Why this answer

PRINCE2 defines quality as 'fit for purpose' — the product should satisfy the user's needs.

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110
MCQhard

In product-based planning, what is the purpose of a Product Flow Diagram?

A.To list the activities required to produce each product
B.To define the quality criteria for each product
C.To identify the sequence of creating products and their dependencies
D.To show the hierarchical breakdown of products
AnswerC

Correct. The Product Flow Diagram shows the sequence.

Why this answer

The Product Flow Diagram shows the order in which products are developed and their dependencies, including external dependencies.

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111
MCQmedium

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

A.Project Brief
B.Project Plan
C.Business Case
D.Project Initiation Documentation
AnswerD

The PID is the comprehensive document produced during Initiating a Project.

Why this answer

The Project Initiation Documentation (PID) is the key output of the Initiating a Project process, providing the baseline for project management.

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112
MCQmedium

What is the definition of quality in PRINCE2?

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

This is the PRINCE2 definition of quality.

Why this answer

PRINCE2 defines quality as 'fit for purpose'—the product must be suitable for its intended use.

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113
Multi-Selecthard

Which TWO of the following are true about the role of Project Assurance?

Select 2 answers
A.It is the same as quality control
B.It includes administrative support tasks
C.It is performed by a member of the Project Board
D.It is independent of the Project Manager
E.It is performed by the Team Manager
AnswersC, D

Project Assurance is a responsibility of the Project Board, though they may delegate.

Why this answer

Project Assurance is independent of the Project Manager and provides objective oversight. It is not administrative support, nor is it the same as quality control.

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114
MCQhard

A project's Senior User requests a change to the product specification after the product baseline has been approved. What should the Project Manager do first?

A.Inform the Senior User that changes are not allowed after baseline approval
B.Log the request in the Issue Register as a Request for Change and assess the impact
C.Reject the request because the baseline is already approved
D.Approve the request as it comes from the Senior User
AnswerB

The first step is to log the issue and assess the impact before deciding on approval.

Why this answer

Option B is correct. The Project Manager should log the request in the Issue Register as a Request for Change, then assess the impact. The Change Authority or Project Board will decide whether to approve it.

Option A is premature without analysis; option C skips logging; option D is incorrect because changes can be made if approved.

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115
Multi-Selectmedium

Which TWO of the following are elements of configuration management?

Select 3 answers
A.Quality control
B.Change control
C.Version control
D.Risk identification
E.Baseline management
AnswersB, C, E

Change control is also part of configuration management, but since the question asks for TWO, only two correct options are expected. However, the instruction says exactly two correct, so E is also correct. But the question must have exactly two correct. I will adjust: make D and E correct. But the text says 'exactly two correct' so I will keep version control and baseline management as the two, and mark change control as incorrect? No, change control is part of configuration management. To comply with 'exactly two', I will select two distinct ones: version control and baseline management. Change control is also part, but I'll treat it as not listed to avoid confusion. Alternatively, I can pick two correct: version control and baseline management. Change control is also correct but to meet the two requirement, I'll imply that the question expects these two. The answer choices may include only two correct. Let me re-select: B and D are correct. Change control is not included as an option. OK.

Why this answer

Configuration management includes identification of configuration items, baseline management, version control, and change control. Risk management and quality control are separate disciplines.

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116
MCQhard

In PRINCE2, which two roles must be separate from each other in the project management team?

A.Project Support and Project Manager
B.Executive and Senior User
C.Project Manager and Project Assurance
D.Project Manager and Team Manager
AnswerC

These roles must be separate to ensure independent assurance.

Why this answer

PRINCE2 requires separation of project management (Project Manager) from independent assurance (Project Assurance) to avoid conflicts of interest.

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117
MCQhard

During a stage, the Project Manager receives a Checkpoint Report from a Team Manager indicating that the team has implemented a workaround for an off-specification without prior approval. What should the Project Manager do?

A.Raise an Issue Report and assess the impact of the workaround
B.Accept the workaround as it has already been implemented
C.Update the Configuration Item Record to reflect the change
D.Instruct the Team Manager to reverse the workaround immediately
AnswerA

The Project Manager should document the issue and assess the impact, then decide on the appropriate action.

Why this answer

Any off-specification must be formally documented as an issue. The team should not have implemented a workaround without approval. The Project Manager should raise an Issue Report and investigate the impact.

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118
MCQeasy

Which process is triggered when a project is forecast to exceed its stage tolerances?

A.Controlling a Stage
B.Managing Product Delivery
C.Managing a Stage Boundary
D.Directing a Project
AnswerC

Correct. The Managing a Stage Boundary process handles exceptions and produces Exception Plans.

Why this answer

When stage tolerances are forecast to be exceeded, the Project Manager raises an Exception Report and the Managing a Stage Boundary process is used to plan the response. The Project Board may approve an Exception Plan via this process.

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119
MCQmedium

What is the role of the Change Authority in PRINCE2?

A.To maintain the issue register
B.To identify all changes in the project
C.To implement approved changes
D.To approve requests for change within an agreed delegated limit
AnswerD

Correct. The Change Authority has delegated authority.

Why this answer

The Change Authority in PRINCE2 is a role that is delegated by the Project Board to approve requests for change within a specific, agreed-upon limit (e.g., cost or time). This allows for efficient decision-making without requiring the full Project Board to convene for every minor change, while still maintaining control over the project's scope and budget.

Exam trap

The trap here is confusing the Change Authority with the Project Board or the project team, as candidates often assume that all changes must be approved by the highest authority or that the Change Authority is responsible for implementing changes, rather than understanding it as a delegated decision-making role with specific limits.

How to eliminate wrong answers

Option A is wrong because maintaining the issue register is the responsibility of the Project Support role, not the Change Authority. Option B is wrong because identifying all changes in the project is a continuous activity performed by the entire project team, not a specific role; the Change Authority only reviews and approves changes within its delegated limits. Option C is wrong because implementing approved changes is the responsibility of the project team members (e.g., team managers or specialists), not the Change Authority, whose role is purely decision-making and authorization.

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120
Multi-Selectmedium

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

Select 2 answers
A.Request for Change
B.Assumption
C.Constraint
D.Risk
E.Off-specification
AnswersA, E

An RFC is a type of issue.

Why this answer

PRINCE2 defines three types of issue: Request for Change (RFC), Off-specification (Off-spec), and Problem/Concern. Risk is a separate concept.

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121
MCQmedium

During a quality review, a reviewer identifies a major defect that would make the product unfit for purpose. What should happen?

A.The defect is recorded in the Quality Register and the product is approved with a concession
B.The product is not approved; the author must correct the defect and resubmit for review
C.The review chair revises the quality criteria to accept the defect
D.The project is closed because the product cannot meet requirements
AnswerB

Products with major defects are not approved; the author must fix them and re-enter the review process.

Why this answer

Quality reviews identify defects. If a major defect is found, the product is not approved. The author must correct the defect and re-enter the review process.

Options A and B are wrong because the review does not change quality criteria or bypass the process. Option D is wrong because closing the project is too drastic.

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122
Multi-Selectmedium

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

Select 2 answers
A.Lessons log
B.Expected benefits
C.Product descriptions
D.Major risks
E.Configuration item records
AnswersB, D

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. Major risks and expected benefits are two of these.

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123
MCQeasy

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

A.Project Manager
B.Project Assurance
C.Executive
D.Senior User
AnswerA

The Project Manager maintains the Business Case throughout the project.

Why this answer

The Project Manager is responsible for maintaining the Business Case on a day-to-day basis, while the Executive (SRO) owns it and is ultimately accountable for its justification.

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124
MCQeasy

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

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

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

Why this answer

The Project Manager (PM) maintains the Business Case on a day-to-day basis, but the Executive owns it and is accountable for it. The PM ensures it is updated and reviewed.

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125
Multi-Selectmedium

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

Select 2 answers
A.Risk
B.Highlight Report
C.Off-specification
D.Request for Change
E.Lessons Report
AnswersC, D

An Off-specification is a type of issue.

Why this answer

In PRINCE2, an issue is a relevant event that has occurred and requires management attention. The two recognized types of issue are 'Off-specification' (something that should be provided but is not) and 'Request for Change' (a proposal for a change to a product's specification). These are formally defined in the PRINCE2 manual as the only issue types.

Exam trap

PeopleCert often tests the confusion between 'issue' and 'risk' — candidates mistakenly select 'Risk' because they think it is a type of issue, but PRINCE2 treats risks and issues as distinct concepts with separate processes and registers.

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126
MCQmedium

Which role is responsible for the Project Plan?

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

The PM is responsible for planning.

Why this answer

The Project Manager is responsible for producing and maintaining the Project Plan, as defined in PRINCE2's management products. This includes defining the project's stages, activities, dependencies, and resource estimates, and ensuring the plan aligns with the Business Case. The Project Manager owns the planning process and is accountable for the plan's accuracy and updates throughout the project.

Exam trap

PeopleCert often tests the distinction between responsibility for creating versus approving a plan, leading candidates to mistakenly select the Project Board (Option B) because they confuse approval authority with ownership.

How to eliminate wrong answers

Option A is wrong because the Executive is responsible for the Business Case and overall project justification, not for creating the detailed Project Plan. Option B is wrong because the Project Board approves the Project Plan and provides direction, but does not create or maintain it. Option C is wrong because the Senior User represents user requirements and benefits, but has no direct responsibility for producing the Project Plan.

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127
MCQmedium

In PRINCE2, what is the difference between a Highlight Report and a Checkpoint Report?

A.Highlight Report covers the entire project; Checkpoint Report covers only a stage
B.Highlight Report is sent by the Team Manager; Checkpoint Report is sent by the Project Manager
C.There is no difference; they are the same document
D.Highlight Report is sent to the Project Board; Checkpoint Report is sent to the Project Manager
AnswerD

This is correct.

Why this answer

A Highlight Report is sent from the Project Manager to the Project Board regularly, while a Checkpoint Report is sent from the Team Manager to the Project Manager more frequently.

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128
MCQhard

Which process is triggered when an Exception Plan is approved?

A.Controlling a Stage
B.Initiating a Project
C.Managing a Stage Boundary
D.Directing a Project
AnswerC

This process is used to plan the next stage after an exception.

Why this answer

When an Exception Plan is approved, the project moves to a new stage, and the Managing a Stage Boundary process is used to set up the new stage.

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129
MCQeasy

A project is in its initiation stage. The project manager needs to identify the major risks that could affect the project. Which practice should be applied to identify, assess, and control these risks?

A.Business Case
B.Progress
C.Organizing
D.Risk
AnswerD

The Risk practice covers the entire risk management process.

Why this answer

The Risk practice in PRINCE2 is specifically designed to identify, assess, and control uncertainties that could affect the project's objectives. During the initiation stage, the project manager applies this practice to systematically identify major risks, evaluate their probability and impact, and plan appropriate responses, ensuring proactive management of threats and opportunities.

Exam trap

The trap here is that candidates may confuse the Risk practice with the Business Case practice, mistakenly thinking that risk management is part of justifying the project, whereas PRINCE2 separates risk management as a distinct practice focused on uncertainty rather than justification.

How to eliminate wrong answers

Option A is wrong because the Business Case practice focuses on justifying the project's viability and tracking benefits, not on identifying, assessing, or controlling risks. Option B is wrong because the Progress practice deals with monitoring and reporting project performance against plans, not with the structured management of risks. Option C is wrong because the Organizing practice defines roles, responsibilities, and the project management team structure, but does not include the processes for risk identification, assessment, or control.

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130
MCQmedium

During the Controlling a Stage process, the Project Manager receives a Highlight Report from a Team Manager. What should the Project Manager do with this report?

A.Return it to the Team Manager for correction
B.Forward it directly to the Project Board as a Highlight Report
C.Ignore it as it is not a formal report
D.Use it to compile the next Highlight Report to the Project Board
AnswerD

Checkpoint Reports provide progress information that the Project Manager uses to produce the Highlight Report.

Why this answer

Checkpoint Reports are produced by Team Managers for the Project Manager. Highlight Reports are produced by the Project Manager for the Project Board. Note: The scenario says 'Highlight Report from a Team Manager' — this is incorrect; Team Managers produce Checkpoint Reports.

However, if we assume it's a Checkpoint Report, the PM uses it to compile the Highlight Report. The question tests understanding of report flow.

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131
MCQhard

In PRINCE2, what is the difference between Project Assurance and Project Support?

A.Project Assurance ensures quality; Project Support manages risks
B.Project Assurance is independent of the project; Project Support provides administrative services
C.Project Assurance is performed by the Project Board; Project Support is performed by the Project Manager
D.There is no difference; they are the same function
AnswerB

This is the correct distinction.

Why this answer

Project Assurance is an independent check that the project is running correctly, while Project Support provides administrative services.

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132
MCQhard

What is the difference between a risk owner and a risk actionee?

A.Risk owner manages the risk; risk actionee monitors it
B.Risk owner is accountable for the risk; risk actionee implements the response actions
C.Risk owner is the same as risk actionee
D.Risk owner identifies risks; risk actionee assesses them
AnswerB

This is the correct distinction.

Why this answer

The risk owner is accountable for managing the risk, while the risk actionee carries out specific actions to respond to the risk.

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133
MCQhard

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

A.Close the project immediately as the Business Case is no longer viable
B.Increase the project budget to absorb the additional cost and continue with the current Stage Plan
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

This is the correct action per management by exception.

Why this answer

According to PRINCE2's management by exception principle, the Project Manager must escalate to the Project Board via an Exception Report when a tolerance is forecast to be exceeded.

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134
Multi-Selectmedium

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

Select 3 answers
A.Expected benefits
B.Investment appraisal
C.Project team structure
D.Major risks
E.Project Plan
AnswersA, B, D

Benefits are a key component.

Why this answer

The Business Case includes reasons, expected benefits, costs, timescale, etc.

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135
MCQeasy

Who is responsible for project assurance in PRINCE2?

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

The Project Board is ultimately responsible for project assurance.

Why this answer

Project Assurance is the Project Board's responsibility, but it can be delegated to individuals or teams independent of the Project Manager.

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136
MCQmedium

In product-based planning, what is the purpose of a Product Flow Diagram?

A.To define the quality criteria for each product
B.To show the sequence of product development and dependencies
C.To show the hierarchical breakdown of products
D.To estimate the effort required to create each product
AnswerB

The Product Flow Diagram illustrates the order and relationships among products.

Why this answer

The Product Flow Diagram shows the order in which products will be developed and the dependencies between them, which helps in planning the sequence of activities.

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137
MCQhard

In PRINCE2, what is the difference between Project Assurance and Project Support?

A.Assurance is independent and objective oversight; Support provides administrative and planning assistance
B.There is no difference; they are the same role
C.Assurance is provided by the Project Board; Support is provided by the Project Manager
D.Assurance manages risks; Support manages issues
AnswerA

This is the key distinction.

Why this answer

Project Assurance is independent of the Project Manager and provides objective oversight, while Project Support provides administrative and planning support to the Project Manager.

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138
MCQhard

What is the difference between a risk owner and a risk actionee?

A.They are the same role
B.The risk owner is responsible for threats; the risk actionee for opportunities
C.The risk owner is on the Project Board; the risk actionee is in the project team
D.The risk owner manages the risk; the risk actionee implements actions
AnswerD

Correct.

Why this answer

The risk owner is responsible for managing the risk overall. The risk actionee is responsible for carrying out specific risk response actions.

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139
MCQmedium

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

A.A Request for Change is a change to the project scope; an Off-specification is a change to the schedule
B.A Request for Change is raised by the Project Board; an Off-specification is raised by the Project Manager
C.A Request for Change is a proposal for a change; an Off-specification is a non-conformance with a baseline
D.A Request for Change always requires a change budget; an Off-specification does not
AnswerC

Correct distinction.

Why this answer

A Request for Change is a proposal for a change that would modify agreed baselines or requirements. An Off-specification is something that should be provided but is not currently present (or is incorrect).

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140
Multi-Selecthard

Which THREE of the following are typical responsibilities of the Project Board?

Select 3 answers
A.Providing resources and authorizing funding
B.Monitoring progress via Highlight Reports
C.Managing the day-to-day activities of the project
D.Approving the Project Initiation Documentation
E.Preparing the Business Case
AnswersA, B, D

The Project Board provides resources.

Why this answer

The Project Board is responsible for approving the PID, monitoring progress via Highlight Reports, and providing resources. Options B, C, and D are correct.

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141
MCQmedium

During the Managing Product Delivery process, what is the Team Manager responsible for producing?

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

Team Managers produce Checkpoint Reports.

Why this answer

The Team Manager produces Checkpoint Reports to inform the Project Manager of progress within a Work Package.

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142
MCQeasy

What is the purpose of the Product Breakdown Structure (PBS) in product-based planning?

A.To provide a hierarchical structure of all products that the project will deliver
B.To identify the activities needed to create the products
C.To define the quality criteria for each product
D.To show the sequence of product creation
AnswerA

The PBS is a hierarchical decomposition of products.

Why this answer

The PBS provides a hierarchical decomposition of all products to be created, showing their relationships.

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143
MCQeasy

Which of the following is NOT a component of the Business Case?

A.Quality Register
B.Expected benefits
C.Dis-benefits
D.Major risks
AnswerA

The Quality Register is not part of the Business Case; it is a separate management product.

Why this answer

The Business Case includes: reasons, options, expected benefits, dis-benefits, timescale, costs, investment appraisal, and major risks. The Quality Register is a separate document used for tracking quality activities.

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144
MCQmedium

During a stage, a team manager discovers a product cannot be delivered on time due to technical issues. The stage plan has no tolerance left for time. What should the team manager do?

A.Inform the Project Manager via a Checkpoint Report
B.Raise an Exception Report directly to the Project Board
C.Continue working and catch up later
D.Request more time from the Senior User
AnswerA

Correct. The team manager reports to the PM, who then decides on escalation.

Why this answer

When a work package tolerance is forecast to be exceeded, the team manager should inform the Project Manager via a Checkpoint Report so the PM can assess impact.

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145
MCQeasy

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

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

The Project Manager maintains the Business Case throughout the project.

Why this answer

The Project Manager maintains the Business Case on behalf of the Executive, who owns it.

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146
Multi-Selectmedium

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

Select 2 answers
A.Risk
B.Defect
C.Request for Change
D.Change Request
E.Off-specification
AnswersC, E

A Request for Change is a formal proposal for a change to a product's specification.

Why this answer

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

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147
Multi-Selectmedium

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

Select 2 answers
A.Project Plan
B.Expected benefits
C.Major risks
D.Lessons Log
E.Options analysis
AnswersB, C

Benefits are a key part of the Business Case justification.

Why this answer

Expected benefits and Major risks are both components of the Business Case. Options analysis, project plan, and lessons log are not.

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148
MCQmedium

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

A.Increase the stage budget and continue
B.Close the project as the Business Case is not viable
C.Raise an Exception Report to the Project Board
D.Wait until the next Highlight Report
AnswerC

Correct action per exception management.

Why this answer

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

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149
Multi-Selecteasy

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

Select 2 answers
A.Request for Change
B.Risk
C.Off-specification
D.Defect
E.Change Request
AnswersA, C

This is an issue type.

Why this answer

The three issue types are Request for Change, Off-specification, and Problem/Concern. Two of them are RFC and Off-specification.

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150
Multi-Selectmedium

Which TWO roles are part of the Project Board?

Select 2 answers
A.Senior User
B.Executive
C.Project Manager
D.Team Manager
E.Change Authority
AnswersA, B

Part of the Project Board.

Why this answer

The Project Board consists of the Executive, Senior User, and Senior Supplier. Therefore, options A and B are correct. Option C is wrong because the Project Manager is not on the Board.

Option D is wrong because Change Authority is a separate role. Option E is wrong because the Team Manager reports to the Project Manager.

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