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CCNA PRINCE2 Practices Questions

75 of 596 questions · Page 6/8 · PRINCE2 Practices · Answers revealed

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376

MCQeasy

A project to upgrade the IT infrastructure of a medium-sized company is in the Initiating a Project process. The project manager has created the Business Case, which shows a net present value (NPV) of £150,000 and an internal rate of return (IRR) of 12%. The project board's executive is concerned that the project may not deliver the expected benefits because the market demand for the new infrastructure is uncertain. The project manager is now preparing the Project Plan. What should the project manager do next?

A.Ask the project board to approve the Project Plan subject to a review of the Business Case later.

B.Proceed with the Project Plan as the Business Case already shows a positive NPV.

C.Update the Business Case to reflect the uncertainty and seek approval from the project board before proceeding with the Project Plan.

D.Refine the Business Case by including a risk assessment of the market uncertainty and then create the Project Plan based on the refined Business Case.

AnswerD

The Business Case should be updated with risk information to support planning.

Why this answer

D is correct because the Business Case must be refined to reflect the market uncertainty before the Project Plan is created. In PRINCE2, the Business Case is a living document that drives decision-making, and the Project Plan is based on it. Including a risk assessment of the market uncertainty ensures the project board can make an informed decision about whether the project remains viable, given the NPV and IRR are based on assumptions that may no longer hold.

Exam trap

The trap here is that candidates may think the Business Case is static once approved, but PRINCE2 requires it to be continually updated to reflect new risks or changes, and the Project Plan must be based on the most current version of the Business Case.

How to eliminate wrong answers

Option A is wrong because it bypasses the need to address the executive's concern about market uncertainty; approving the Project Plan subject to a later review of the Business Case violates the PRINCE2 principle of continued business justification, as the plan should be based on a current, validated Business Case. Option B is wrong because proceeding with the Project Plan despite known market uncertainty ignores the risk that the NPV and IRR may be invalid; PRINCE2 requires that the Business Case be updated to reflect new risks before planning continues. Option C is wrong because it suggests updating the Business Case to reflect uncertainty but then seeking approval before proceeding with the Project Plan, which is incomplete; the correct action is to refine the Business Case by including a risk assessment (as in D) and then create the Project Plan based on that refined version, not just update and seek approval separately.

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377

MCQmedium

In the Risk practice, who is responsible for implementing a risk response?

A.Project Manager

B.Project Board

C.Risk actionee

D.Risk owner

AnswerC

The risk actionee implements the agreed response.

Why this answer

In PRINCE2, the risk actionee is the person responsible for implementing the risk response actions as defined in the risk response plan. The risk owner owns the risk and oversees the response, but the actual implementation is delegated to the risk actionee. This separation ensures clear accountability for execution versus ownership.

Exam trap

A common mistake in PRINCE2 is confusing the risk owner (who is accountable for the risk) with the risk actionee (who implements the risk response). Candidates often select the risk owner, but the actual implementation is delegated to the risk actionee.

How to eliminate wrong answers

Option A is wrong because the Project Manager is responsible for managing the risk management process and ensuring responses are implemented, but they do not personally implement each response; that is delegated to the risk actionee. Option B is wrong because the Project Board provides direction and approves the risk budget, but they are not involved in the day-to-day implementation of risk responses. Option D is wrong because the risk owner is accountable for the risk and decides on the response strategy, but the actual implementation is carried out by the risk actionee.

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378

MCQeasy

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

A.Senior User

B.Project Manager

C.Executive

D.Project Support

AnswerB

The Project Manager maintains 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 Business Case remains viable by monitoring costs, benefits, and risks against the approved plan, and escalates any deviations to the Project Board. This responsibility is explicitly assigned to the Project Manager in the PRINCE2 manual for the Business Case management process.

Exam trap

PRINCE2 often tests the distinction between ownership (Executive) and maintenance (Project Manager), leading candidates to incorrectly select the Executive because they confuse accountability for the Business Case with the hands-on responsibility of keeping it current.

How to eliminate wrong answers

Option A is wrong because the Senior User represents the users' interests and specifies the expected benefits, but does not maintain the Business Case document itself. Option C is wrong because the Executive owns the Business Case and is ultimately accountable for its approval and justification, but the day-to-day maintenance and update of the document is delegated to the Project Manager. Option D is wrong because Project Support provides administrative and advisory services, such as maintaining the project's configuration management or quality records, but has no authority or responsibility for maintaining the Business Case.

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379

Multi-Selecthard

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

Select 3 answers

A.Approving Stage Plans

B.Providing direction and control

C.Deciding on exception situations

D.Preparing the Project Brief

E.Managing day-to-day activities

AnswersA, B, C

The Board approves Stage Plans.

Why this answer

The Project Board provides direction, approves plans, and makes key decisions.

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380

Multi-Selectmedium

Which TWO of the following are components of the Project Initiation Documentation (PID)?

Select 2 answers

A.Lessons Log

B.Business Case

C.Issue Register

D.Project Plan

E.Risk Register

AnswersB, D

The Business Case is a component of the PID.

Why this answer

The PID includes the Project Plan and the Business Case. The Risk Register and Issue Register are separate documents. The Lessons Log is created during Starting Up a Project.

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381

Multi-Selectmedium

Which TWO statements about the PRINCE2 Quality practice are correct?

Select 2 answers

A.Quality control is the responsibility of the project board.

B.Quality assurance is performed by the project manager.

C.The quality register is used to record planned and completed quality activities.

D.The quality management strategy defines the project's approach to quality.

E.The project product description is a specialist product.

AnswersC, D

The quality register logs quality activities and their results.

Why this answer

The quality register is the PRINCE2 management product used to record all planned and completed quality activities, including quality inspections and test results. It provides a log of quality events throughout the project lifecycle, enabling traceability and auditability of quality efforts.

Exam trap

The trap here is confusing the roles of quality control and quality assurance, leading candidates to incorrectly assign quality control to the project board or quality assurance to the project manager, when in fact the project manager owns quality control and the project board owns quality assurance.

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382

Multi-Selecthard

Which THREE of the following are components of the defined project management team structure in PRINCE2?

Select 3 answers

A.Project Manager

B.Team Manager

C.Project Board

D.Customer

E.Business Case

AnswersA, B, C

The Project Manager is a key role.

Why this answer

The PRINCE2 project management team includes the Project Board (Executive, Senior User, Senior Supplier), Project Manager, Team Manager, and optional Project Support and Project Assurance. The Customer is not a role; the Senior User represents the customer. The Business Case is a practice, not a role.

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383

MCQmedium

Which document describes the quality criteria for a specific product?

A.Project Product Description

B.Product Description

C.Quality Management Strategy

D.Quality Register

AnswerB

Product Descriptions contain the quality criteria for each product.

Why this answer

A Product Description includes quality criteria that define what 'fit for purpose' means for that product.

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384

MCQmedium

What is the purpose of the product-based planning approach in PRINCE2?

A.To define the products and their quality criteria before planning activities

B.To list all activities required to produce the products

C.To create a Gantt chart

D.To assign costs to each activity

AnswerA

Product-based planning starts with identifying required products and their descriptions.

Why this answer

The product-based planning approach in PRINCE2 ensures that the project's outputs (products) and their quality criteria are defined before planning the activities and dependencies. This prevents scope creep and rework by establishing clear acceptance standards upfront, aligning with PRINCE2's focus on management by product.

Exam trap

The trap here is that candidates often confuse product-based planning with activity-based planning, mistakenly thinking the purpose is to list tasks or create schedules, when PRINCE2 specifically requires defining products and their quality criteria first.

How to eliminate wrong answers

Option B is wrong because listing activities is part of activity-based planning, which occurs after product identification in PRINCE2's product-based planning sequence. Option C is wrong because a Gantt chart is a scheduling tool used during the activity planning stage, not the purpose of product-based planning. Option D is wrong because assigning costs to activities is part of resource and cost planning, which follows product definition and quality criteria specification.

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385

MCQhard

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

A.There is no difference; they are interchangeable terms

B.Project Assurance is independent; Project Support provides administrative services

C.Project Assurance focuses on products; Project Support focuses on processes

D.Project Assurance is performed by the Project Manager; Project Support is performed by the team

AnswerB

Correct. Assurance is independent of the PM; Support assists the PM.

Why this answer

Project Assurance is independent oversight of the project's direction and controls, while Project Support provides administrative and advisory services to the Project Manager.

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386

MCQeasy

Which plan is produced during the Initiating a Project process and covers the entire project at a high level?

A.Project Plan

B.Exception Plan

C.Stage Plan

D.Team Plan

AnswerA

The Project Plan covers the whole project and is created during IP.

Why this answer

The Project Plan is produced during Initiating a Project and provides the overall plan for the project.

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387

Multi-Selectmedium

Which THREE of the following are threat response types in PRINCE2?

Select 3 answers

A.Avoid

B.Enhance

C.Transfer

D.Exploit

E.Accept

AnswersA, C, E

Avoid is a threat response.

Why this answer

In PRINCE2, threat response types are specific strategies for dealing with negative risks (threats). 'Avoid' (Option A) is a valid threat response that involves changing the plan to eliminate the threat or protect the project from its impact. 'Transfer' (Option C) shifts the financial impact of a threat to a third party, such as through insurance or a fixed-price contract. 'Accept' (Option E) acknowledges the threat and takes no proactive action, often with a contingency plan in place. These three are explicitly listed in the PRINCE2 risk management practice.

Exam trap

The trap here is that candidates confuse threat response types with opportunity response types, mistakenly selecting 'Enhance' or 'Exploit' as valid threat responses when they are only used for positive risks.

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388

MCQhard

In the Organising practice, what is the principle behind separating assurance from management?

A.To ensure that the Senior User approves all changes

B.To allow the Project Board to monitor the project without direct involvement

C.To reduce the workload of the Project Manager

D.To provide independent oversight of the project's management and delivery

AnswerD

Correct. Assurance is independent of management to provide objective checks.

Why this answer

In PRINCE2, the principle of separating assurance from management ensures that those who are responsible for the project's day-to-day management (the Project Manager) are not the same individuals who verify that the project is being managed correctly and remains viable. Option D is correct because assurance provides an independent, objective check on the project's management and delivery, protecting the Project Board's interests without being involved in the execution. This separation prevents conflicts of interest and ensures that assurance activities (e.g., reviewing compliance with the Business Case, quality standards, and risks) are unbiased.

Exam trap

A common misconception tested in PRINCE2 is that assurance is simply a monitoring tool for the Project Board to reduce their workload, rather than understanding it as a fundamental governance mechanism to provide independent, objective oversight of the project's management and delivery.

How to eliminate wrong answers

Option A is wrong because the Senior User does not approve all changes; change control authority is defined in the project's change control approach and typically involves the Project Board or a designated change authority, not solely the Senior User. Option B is wrong because the Project Board does monitor the project through management reports and stage boundaries, but the principle of separating assurance from management is not primarily about reducing the Board's direct involvement; it is about ensuring independent oversight of management activities. Option C is wrong because while separating assurance may indirectly affect workload, the core purpose is not to reduce the Project Manager's workload but to provide objective checks on their work, which can actually increase oversight effort.

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389

MCQmedium

Who should perform Project Assurance to ensure independence from the Project Manager?

A.Project Board members (or their delegates)

B.Team Manager

C.Project Support

D.Project Manager

AnswerA

Correct. Project Assurance must be independent and is often performed by Project Board members.

Why this answer

Project Assurance is independent of the Project Manager and can be performed by individuals from the Project Board or external reviewers.

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390

MCQmedium

Who is responsible for providing assurance that the project is being managed correctly?

A.Project Manager

B.Team Manager

C.Project Assurance

D.Project Support

AnswerC

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

Why this answer

Project Assurance is the independent check that the project is being managed correctly, as defined in PRINCE2. It is a role separate from the Project Manager and Team Manager, ensuring that the project remains viable and compliant with the organization's policies and standards. The Project Board delegates this responsibility to Project Assurance, which provides objective oversight throughout the project lifecycle.

Exam trap

The trap here is that candidates often confuse Project Assurance with Project Support or the Project Manager's responsibilities, assuming the Project Manager is responsible for all aspects of project management including assurance, but PRINCE2 explicitly separates the assurance role to maintain objectivity.

How to eliminate wrong answers

Option A is wrong because the Project Manager is responsible for day-to-day management and delivery of the project, not for providing independent assurance that the project is being managed correctly. Option B is wrong because the Team Manager is responsible for delivering the work packages within a team, not for providing assurance on the overall management of the project. Option D is wrong because Project Support provides administrative and clerical services to the project, such as maintaining files and tools, but does not have an assurance role.

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391

MCQmedium

Which report is produced by the Team Manager to inform the Project Manager about progress against a Work Package?

A.Checkpoint Report

B.End Stage Report

C.Exception Report

D.Highlight Report

AnswerA

The Checkpoint Report is from the Team Manager to the Project Manager.

Why this answer

A Checkpoint Report is produced by the Team Manager to provide the Project Manager with progress details on a Work Package at regular intervals.

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392

Multi-Selecteasy

Which TWO roles are permanent members of the Project Board?

Select 2 answers

A.Executive

B.Team Manager

C.Senior User

D.Project Manager

E.Project Support

AnswersA, C

The Executive is a permanent member.

Why this answer

The Project Board consists of the Executive, Senior User, and Senior Supplier. The Project Manager is not a permanent member.

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393

MCQhard

In PRINCE2, what is the difference between a risk owner and a risk actionee?

A.The risk owner identifies the risk; the risk actionee implements the response

B.The risk owner monitors the risk; the risk actionee updates the risk register

C.The risk owner is responsible for managing the risk; the risk actionee performs the agreed response actions

D.There is no difference; the terms are synonymous

AnswerC

Correct distinction.

Why this answer

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

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394

MCQhard

In PRINCE2, who is responsible for defining the project's acceptance criteria?

A.Executive

B.Project Assurance

C.Project Manager

D.Senior User

AnswerD

The Senior User defines the acceptance criteria to ensure the product meets user needs.

Why this answer

In PRINCE2, the Senior User is responsible for defining the project's acceptance criteria because they represent the interests of those who will use the project's products and are best placed to specify the quality expectations and measurable conditions that must be met for the project to be accepted. The acceptance criteria are documented in the Project Product Description, which is part of the Business Case, and the Senior User ensures these criteria reflect the users' needs and are achievable.

Exam trap

The trap here is that candidates often confuse the Executive's overall accountability for the project with the specific responsibility for defining acceptance criteria, or they mistakenly assign this task to the Project Manager who manages the acceptance process but does not set the criteria.

How to eliminate wrong answers

Option A is wrong because the Executive is responsible for the project's business justification and overall viability, not for defining the detailed acceptance criteria; they approve the Business Case but delegate user-specific requirements to the Senior User. Option B is wrong because Project Assurance is an independent monitoring role that checks compliance and adherence to standards, but it does not define acceptance criteria; it reviews them for completeness and alignment. Option C is wrong because the Project Manager is responsible for planning, managing, and delivering the project within constraints, but they do not define acceptance criteria; they use the criteria defined by the Senior User to plan acceptance activities and manage quality.

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395

MCQmedium

A project manager is defining the project's products in the Product Breakdown Structure. A key stakeholder disagrees with the inclusion of a certain product, claiming it is not needed. The project manager believes the product is essential to meet the user requirements. What is the best course of action according to PRINCE2 practices?

A.Escalate directly to senior management without discussion with the stakeholder.

B.Update the Business Case to reflect the costs and benefits of including the product, and present it to the Project Board for a decision.

C.Proceed with including the product as the project manager has authority over product definitions.

D.Remove the product to satisfy the stakeholder, as stakeholder satisfaction is key.

AnswerB

This follows the PRINCE2 practice of continued business justification and involves the Project Board.

Why this answer

PRINCE2 requires that any change to the project's scope, including the addition or removal of a product, must be formally assessed against the Business Case. The project manager should update the Business Case with the costs and benefits of including the disputed product and then present it to the Project Board, which holds the authority to approve or reject changes to the project's products. This aligns with the 'continued business justification' principle and the 'change control' practice.

Exam trap

PeopleCert often tests the misconception that the project manager has authority over product definitions, when in fact the Project Board holds the decision-making power for scope changes, and the Business Case must be updated to justify any such change.

How to eliminate wrong answers

Option A is wrong because it bypasses the stakeholder and the Project Board, violating PRINCE2's 'manage by stages' and 'manage by exception' principles, which require escalation only through the proper management level. Option C is wrong because the project manager does not have unilateral authority over product definitions; the Project Board is responsible for approving the Product Breakdown Structure and any changes to it. Option D is wrong because simply removing the product to satisfy a stakeholder ignores the need for continued business justification and the formal change control process, which requires assessing the impact on the Business Case.

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396

MCQeasy

What is the purpose of the Product Status Account?

A.To update the configuration management system

B.To summarize the status of products in the project

C.To approve changes to baselined products

D.To record the quality review results of a product

AnswerB

Correct. The Product Status Account provides a summary of product statuses.

Why this answer

The Product Status Account provides information about the status of products, typically including their version, state (e.g., in development, approved), and configuration records. It is used to report on the state of the project's products.

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397

MCQmedium

During the Managing a Stage Boundary process, what is the Project Manager required to produce?

A.Exception Plan

B.End Stage Report and next Stage Plan

C.Benefits Review Plan

D.Project Plan update

AnswerB

The End Stage Report reviews the current stage, and the next Stage Plan is presented for approval.

Why this answer

The End Stage Report is produced to give the Project Board a summary of progress to date, plus the next Stage Plan for approval.

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398

MCQeasy

Which practice defines the project management team structure and roles?

A.Business Case

B.Plans

C.Organising

D.Progress

AnswerC

Correct.

Why this answer

The Organising practice defines the project management team structure, roles, and responsibilities, including the project board, project manager, and team manager roles. It establishes the project's organizational hierarchy and accountability lines, ensuring clear authority and communication paths.

Exam trap

PRINCE2 often tests the distinction between 'Organising' (structure/roles) and 'Plans' (schedules/resources), so the trap here is confusing the definition of team roles with the planning of activities and deliverables.

How to eliminate wrong answers

Option A is wrong because the Business Case practice justifies the project's viability and ongoing business justification, not the team structure. Option B is wrong because the Plans practice defines how the project will be delivered, including schedules and resources, but not the team roles or structure. Option D is wrong because the Progress practice monitors and controls project performance against plans, not the organizational setup.

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399

MCQeasy

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

A.The Executive

B.The Project Manager

C.The Project Support

D.The Senior User

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 they manage day-to-day activities, track progress against the Business Case, and provide updated information to the Executive for approval. PRINCE2 assigns the Project Manager the duty of ensuring the Business Case remains viable by monitoring costs, benefits, and risks, and escalating any deviations. This aligns with the 'continued business justification' principle, where the Project Manager is the custodian of the Business Case's ongoing validity.

Exam trap

PRINCE2 candidates often confuse the Executive's approval authority with the Project Manager's ongoing maintenance responsibility for the Business Case.

How to eliminate wrong answers

Option A is wrong because the Executive is the owner of the Business Case and approves it, but they are not responsible for its day-to-day maintenance; that is delegated to the Project Manager. Option C is wrong because Project Support provides administrative and advisory services (e.g., maintaining registers or configuration management) but does not own or maintain the Business Case. Option D is wrong because the Senior User specifies the benefits and is a key stakeholder, but they do not maintain the Business Case; their role is to ensure the project delivers the required outcomes.

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400

MCQhard

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

A.A Request for Change proposes a change to a product that has not yet been created; an Off-specification relates to a product that already exists and is defective

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

C.A Request for Change is for any change to an agreed baseline; an Off-specification is when a product does not meet its specification

D.A Request for Change must be approved by the Project Board; an Off-specification can be approved by the Change Authority

AnswerC

This is the correct distinction.

Why this answer

In PRINCE2, a Request for Change (RFC) is a proposal for a change to any product that has been baselined, while an Off-specification (Off-spec) is a notification that a product does not meet its agreed specification. The key distinction lies in the nature of the issue: an RFC seeks to alter an existing baseline, whereas an Off-spec reports a deviation from the specification that must be resolved, often through a concession or a corrective action.

Exam trap

A common trap in PRINCE2 is the misconception that an Off-specification only applies to products that have already been created or baselined. In reality, PRINCE2 defines an Off-specification as any product (including those under development) that fails to meet its agreed specification, regardless of whether it has been baselined.

How to eliminate wrong answers

Option A is wrong because an Off-specification can relate to a product that has not yet been created (e.g., a product under development that fails to meet its specification), and an RFC can be raised for a product that already exists (e.g., a change to a baselined product). Option B is wrong because a Request for Change can be raised by any stakeholder, not just the Project Manager, and an Off-specification can be raised by anyone, including the Project Manager, Team Manager, or Quality Assurance. Option D is wrong because both an RFC and an Off-specification may require approval by the Project Board or the Change Authority depending on the level of authority delegated in the Change Budget and the severity of the issue; the statement incorrectly implies a fixed approval path.

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401

MCQhard

A project has identified an opportunity to reduce costs by using a new technology. The Project Manager decides to allocate additional resources to increase the likelihood of this opportunity occurring. Which risk response type is being applied?

A.Share

B.Reject

C.Enhance

D.Exploit

AnswerC

Enhance aims to increase the probability or impact of an opportunity.

Why this answer

The project is taking proactive action to increase the probability of a positive opportunity (cost reduction via new technology). In PRINCE2, the 'Enhance' response is specifically used to increase the likelihood and/or impact of an opportunity. By allocating additional resources to boost the chance of the technology succeeding, the Project Manager is applying the Enhance response, not Exploit (which would assume the opportunity is already certain and seeks to maximize its benefits).

Exam trap

The trap here is that candidates often confuse 'Enhance' with 'Exploit' because both involve taking action on an opportunity, but Exploit assumes the opportunity is already likely to happen and focuses on maximizing benefit, whereas Enhance is about increasing the probability of an uncertain opportunity.

How to eliminate wrong answers

Option A is wrong because 'Share' involves partnering with a third party to manage the opportunity (e.g., a joint venture), not allocating internal resources to increase probability. Option B is wrong because 'Reject' means deliberately not taking the opportunity (e.g., ignoring or declining it), which is the opposite of actively investing resources to make it happen. Option D is wrong because 'Exploit' is used when the opportunity is almost certain to occur and the goal is to maximize the benefit, not to increase the likelihood of it happening in the first place.

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402

MCQhard

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

A.An RFC is about scope changes; an Off-spec is about quality issues

B.An RFC is a request for a change to a baselined product; an Off-spec is a deviation from what was specified

C.An RFC is always approved by the Project Board; an Off-spec is approved by the Project Manager

D.An RFC is raised by the Project Manager; an Off-spec is raised by the team

AnswerB

This is the key distinction.

Why this answer

An RFC is a proposal for a change to a baselined product; an Off-spec is something that should be provided but is not, or is provided incorrectly.

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403

MCQmedium

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

A.Continue with the current Stage Plan and report the cost overrun in the next Highlight Report

B.Raise an Exception Report to the Project Board and await their direction before proceeding

C.Close the project immediately as the Business Case is no longer viable

D.Increase the project budget to absorb the additional cost and continue with the current Stage Plan

AnswerB

This is the correct action per PRINCE2's management by exception principle.

Why this answer

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

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404

Multi-Selectmedium

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

Select 2 answers

A.Constraint

B.Assumption

C.Risk

D.Off-specification

E.Request for Change

AnswersD, E

This is a type of issue.

Why this answer

PRINCE2 defines three types of issues: Request for Change, Off-specification, and Problem/Concern. In this question, the correct answers are Off-specification (D) and Request for Change (E). Constraint, Assumption, and Risk are not classified as issue types in PRINCE2; they are considered in other contexts such as the business case or risk register.

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405

Multi-Selecthard

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

Select 3 answers

A.Major risks

B.Project Plan

C.Risk Register

D.Expected benefits

E.Costs

AnswersA, D, E

Major risks are included in the Business Case.

Why this answer

PRINCE2 specifies that a Business Case includes reasons, options, expected benefits, dis-benefits, timescale, costs, investment appraisal, and major risks. Expected benefits, major risks, and costs are explicitly listed.

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406

MCQhard

A project manager is creating the project product description. Which practice provides the guidance for defining the project's outputs and acceptance criteria?

A.Change

B.Risk

C.Quality

D.Plans

AnswerC

The Quality practice provides the project product description template and guidance.

Why this answer

The Quality practice in PRINCE2 provides the guidance for defining the project's outputs and acceptance criteria. It ensures that the project product description includes the quality criteria, quality methods, and acceptance criteria that the product must meet to be accepted by the customer. This practice directly addresses how to specify and verify the project's deliverables.

Exam trap

The trap here is that candidates often confuse the Plans practice with defining outputs, but PRINCE2 explicitly assigns the definition of outputs and acceptance criteria to the Quality practice, not to Plans.

How to eliminate wrong answers

Option A is wrong because the Change practice deals with managing issues, change requests, and configuration management, not with defining outputs or acceptance criteria. Option B is wrong because the Risk practice focuses on identifying, assessing, and controlling uncertainties that could affect the project, not on specifying product requirements or acceptance standards. Option D is wrong because the Plans practice covers the creation of project plans, including schedules and resources, but does not provide the specific guidance for defining the project's outputs and acceptance criteria—that is the role of the Quality practice.

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407

Multi-Selecthard

Which THREE statements about the PRINCE2 Risk practice are correct?

Select 3 answers

A.The risk register is a management product that records identified risks.

B.The risk management strategy describes how risks will be managed.

C.The risk budget is used to fund risk responses.

D.Risk owners are responsible for the risk budget.

E.Risks are assessed only during the initiating a project process.

AnswersA, B, C

The risk register documents all identified risks and their management.

Why this answer

The risk register is a PRINCE2 management product that formally records all identified risks, their status, and related information throughout the project. It is created during the Initiating a Project process and maintained as risks are identified, assessed, and responded to.

Exam trap

The trap here is confusing the role of a risk owner with budget authority, leading candidates to incorrectly select Option D, and assuming risk assessment is a one-time event rather than a continuous activity, which makes Option E seem plausible.

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408

MCQmedium

During which process does the Project Board authorize the project to proceed with the initiation stage?

A.Starting up a Project

B.Directing a Project

C.Initiating a Project

D.Controlling a Stage

AnswerB

DP includes the decision to authorize initiation.

Why this answer

The Project Board authorizes the project to proceed with the initiation stage during the 'Directing a Project' process. This process covers the Project Board's decision-making responsibilities, including giving the authorization to start the initiation stage after reviewing the Project Brief and the Stage Plan for initiation. The specific management product used for this authorization is the 'Project Initiation Documentation' (PID) approval, but the decision itself is a key activity in the Directing a Project process.

Exam trap

The trap here is that candidates often confuse the 'Starting up a Project' process (which prepares the project for initiation) with the actual authorization to begin the initiation stage, but PRINCE2 explicitly separates the preparation work from the board-level decision to proceed.

How to eliminate wrong answers

Option A is wrong because 'Starting up a Project' is the process that prepares the Project Brief and appoints the Project Manager and Executive, but it does not authorize the initiation stage; that authorization is given by the Project Board in the subsequent 'Directing a Project' process. Option C is wrong because 'Initiating a Project' is the process that develops the Project Initiation Documentation (PID) and detailed plans, but it occurs after the authorization to proceed with initiation has already been granted. Option D is wrong because 'Controlling a Stage' is the process for managing day-to-day work within a stage and reporting progress to the Project Board, not for authorizing the start of the initiation stage.

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409

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.Continue with the current plan and report the cost overrun in the next Highlight Report

C.Raise an Exception Report to the Project Board and await their direction

D.Increase the budget to absorb the additional cost and continue with the current plan

AnswerC

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

Why this answer

In PRINCE2, when a project is forecast to exceed its cost tolerance, the Project Manager must escalate the issue to the Project Board by raising an Exception Report. This is because tolerances are delegated limits, and exceeding them requires a decision from the Project Board to either approve a deviation, change the plan, or take corrective action. Continuing without escalation violates the management by exception principle.

Exam trap

The trap here is that candidates may think a Highlight Report is sufficient for reporting issues, but PRINCE2 requires an Exception Report specifically when a tolerance is forecast to be exceeded, not just a routine report.

How to eliminate wrong answers

Option A is wrong because closing the project immediately is premature; the Business Case may still be viable if the Project Board approves a revised budget or plan. Option B is wrong because continuing with the current plan and reporting the overrun in the next Highlight Report ignores the need for immediate escalation when a tolerance is forecast to be exceeded. Option D is wrong because increasing the budget without Project Board authorization exceeds the Project Manager's delegated authority and violates the management by exception principle.

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410

MCQhard

Which role is responsible for providing independent assurance that the project is being managed correctly?

A.Team Manager

B.Project Manager

C.Project Support

D.Project Assurance

AnswerD

Correct. Project Assurance is independent.

Why this answer

Project Assurance is independent of the Project Manager and provides objective oversight to the Project Board.

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411

Multi-Selectmedium

Which TWO of the following are components of the Project Initiation Documentation (PID)?

Select 2 answers

A.The Project Plan

B.The Stage Plan

C.The Exception Plan

D.The Team Plan

E.The Business Case

AnswersA, E

The Project Plan is a component of the PID.

Why this answer

The Project Initiation Documentation (PID) is a key PRINCE2 management product that provides a foundation for the project. The Project Plan is a core component of the PID as it defines the overall timeline, costs, and resources for the entire project. The Business Case is also a mandatory component, providing the justification for the project and ensuring its continued viability.

Exam trap

A common mistake in PRINCE2 is to include the Stage Plan in the PID. However, the Stage Plan is created later and is not part of the PID; only the Project Plan and Business Case are PID components.

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412

MCQmedium

Which risk response is appropriate for a threat that the project decides to mitigate by outsourcing?

A.Reduce

B.Avoid

C.Accept

D.Transfer

AnswerD

Transfer passes the risk to a third party.

Why this answer

Transfer involves shifting the financial impact of a risk to a third party, e.g., through insurance or outsourcing.

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413

MCQeasy

A project is in the Initiating a Project process. The project manager is creating the Risk Management Approach. Which of the following should be included in this approach?

A.The risk register with identified risks.

B.The risk categories to be used for classifying risks.

C.The risk appetite of the organization.

D.The risk budget for the project.

AnswerB

Risk categories help structure risk identification and are a key component of the Risk Management Approach.

Why this answer

In the Initiating a Project process, the Risk Management Approach is a strategy document that defines how risk management will be performed throughout the project. It must include the risk categories (e.g., technical, external, organizational) used to classify risks, as these provide a consistent framework for identifying and assessing risks. The risk register, risk appetite, and risk budget are not part of the approach itself; they are outputs of later processes or separate management products.

Exam trap

PeopleCert often tests the distinction between the Risk Management Approach (a strategy document) and the Risk Register (a live log of risks), leading candidates to mistakenly include the risk register as part of the approach.

How to eliminate wrong answers

Option A is wrong because the risk register is a separate management product that records identified risks and their analysis, not a component of the Risk Management Approach. Option C is wrong because risk appetite is an organizational policy that influences risk thresholds but is not documented within the Risk Management Approach; it is typically defined at the corporate or programme level. Option D is wrong because the risk budget is a specific financial allocation for risk responses, which is established later in the plan and is not part of the approach document.

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414

Multi-Selecthard

Which THREE of the following are threat responses in PRINCE2?

Select 3 answers

A.Transfer

B.Reduce

C.Enhance

D.Exploit

E.Avoid

AnswersA, B, E

Transfer is a threat response.

Why this answer

Avoid, reduce, and transfer are threat responses. Exploit and enhance are opportunity responses.

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415

Multi-Selecthard

Which TWO of the following statements about the Progress practice are correct?

Select 2 answers

A.An Exception Report is produced by the Project Manager when the project is closed early.

B.An Exception Plan is used to replace the Project Plan when the project exceeds its tolerances.

C.The Project Manager sets tolerances for the Team Managers.

D.Highlight Reports are produced by the Project Manager for the Project Board at stage end.

E.The Project Board sets tolerances for the Project Manager.

AnswersC, E

Correct. The Project Manager sets stage or work package tolerances for Team Managers.

Why this answer

Tolerances are set for each management level, and Exception Plans are created when tolerances are forecast to be exceeded.

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416

Multi-Selecthard

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

Select 3 answers

A.Major risks

B.Project Initiation Documentation

C.Investment appraisal

D.Expected benefits

E.Project management team roles

AnswersA, C, D

Risks are documented in the Business Case.

Why this answer

Options A, C, and D are correct. A Business Case typically includes reasons, expected benefits, dis-benefits, costs, timescales, major risks, and investment appraisal. Option B is incorrect because the PID is a separate document that contains the Business Case but is not itself a component of the Business Case.

Option E is incorrect because team roles are part of the Organising practice.

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417

MCQeasy

Which practice defines the project management team structure and roles?

A.Business Case

B.Plans

C.Progress

D.Organising

AnswerD

Organising defines the project management team structure and roles.

Why this answer

The Organising practice defines the project management team structure, roles, and responsibilities.

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418

MCQeasy

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

A.Senior User

B.Executive

C.Project Assurance

D.Project Manager

AnswerD

Correct. The Project Manager is responsible for maintaining the Business Case throughout the project, including updating it with actuals and forecasts.

Why this answer

According to PRINCE2, the Project Manager is responsible for maintaining the Business Case throughout the project, including updating it with actuals and forecasts. The Executive owns the Business Case but day-to-day maintenance is delegated to the Project Manager. Option A is incorrect because the Senior User specifies benefits and user requirements, not maintains the Business Case.

Option B is incorrect because while the Executive owns the Business Case, the responsibility for its maintenance lies with the Project Manager. Option C is incorrect because Project Assurance provides independent oversight, not maintenance of the Business Case.

Exam trap

A common trap is confusing ownership with maintenance: the Executive owns the Business Case, but the Project Manager maintains it.

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419

MCQhard

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

A.Close the project as the Business Case is no longer viable

B.Continue with the current Plan and report in the next Highlight Report

C.Increase the project budget to absorb the additional cost

D.Raise an Exception Report to the Project Board

AnswerD

An Exception Report is the correct mechanism to escalate tolerance breaches.

Why this answer

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

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420

MCQmedium

What is the purpose of a Checkpoint Report?

A.To provide the Project Manager with information on team progress

B.To provide the Project Board with information on stage progress

C.To report an exception to the Project Board

D.To document lessons learned

AnswerA

Correct. Checkpoint Reports are from Team Manager to Project Manager.

Why this answer

The Checkpoint Report is a PRINCE2 management product used by the Team Manager to report on team-level progress to the Project Manager at a frequency defined in the Work Package. Its purpose is to provide the Project Manager with information on team progress, including completed work, planned activities, and any issues or risks, enabling informed decision-making without escalating to the Project Board.

Exam trap

The trap here is confusing the audience of the Checkpoint Report (Project Manager) with that of the Highlight Report (Project Board), leading candidates to incorrectly select Option B.

How to eliminate wrong answers

Option B is wrong because the Checkpoint Report is directed to the Project Manager, not the Project Board; the Project Board receives the End Stage Report and Highlight Reports for stage-level progress. Option C is wrong because reporting an exception is the purpose of an Exception Report, which is triggered when a stage is forecast to exceed tolerances, not a Checkpoint Report. Option D is wrong because lessons learned are captured and documented in the Lessons Log and Lessons Report, not in Checkpoint Reports, which focus on current team progress.

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421

MCQhard

A project is using the PRINCE2 risk management procedure. A risk has been identified that, if it occurs, could cause a major delay to the project. The risk owner decides to take action to reduce the probability of the risk occurring. Which risk response type is being used?

A.Accept

B.Avoid

C.Reduce

D.Transfer

AnswerC

Correct. Taking action to lower probability or impact is the Reduce response.

Why this answer

The 'Reduce' response involves actions to lower the probability and/or impact of a threat. The scenario describes reducing probability, which fits 'Reduce'. 'Avoid' would change the plan to eliminate the risk; 'Transfer' would shift the risk to a third party; 'Accept' would acknowledge the risk without action.

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422

MCQhard

In PRINCE2, what is the definition of quality?

A.Freedom from defects

B.Conformance to specifications

C.Customer satisfaction

D.Fit for purpose

AnswerD

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

Why this answer

PRINCE2 defines quality as 'fit for purpose', meaning the product meets its stated requirements and acceptance criteria.

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423

Multi-Selectmedium

Which TWO of the following are opportunity responses in PRINCE2?

Select 2 answers

A.Enhance

B.Transfer

C.Exploit

D.Reduce

E.Avoid

AnswersA, C

Enhance is an opportunity response to increase the probability or impact.

Why this answer

In PRINCE2, opportunity responses are specific actions to address opportunities (positive risks). 'Enhance' is a correct response because it involves proactively increasing the probability and/or impact of an opportunity, such as allocating additional resources to maximize a potential benefit. 'Exploit' is also correct as it seeks to ensure the opportunity is realized by making it happen, often by assigning ownership or implementing a specific plan.

Exam trap

The trap here is that candidates often confuse 'reduce' (a threat response) with 'enhance' (an opportunity response), or mistakenly think 'transfer' applies to opportunities because it involves external parties, but PRINCE2 strictly defines transfer only for threats.

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424

MCQhard

A project is in the Initiating a Project process. Which document is created to define how issues and changes will be managed?

A.Issue Register

B.Business Case

C.Change Management Approach

D.Project Plan

AnswerC

This document defines the approach to managing issues and changes.

Why this answer

In PRINCE2, the Change Management Approach is created during the Initiating a Project process to define how issues, changes, and configuration items will be managed throughout the project. It specifies the procedures for capturing, assessing, and deciding on issues and change requests, including the roles and responsibilities involved. This document ensures a consistent and controlled approach to handling changes, which is critical for maintaining project stability.

Exam trap

The trap here is that candidates often confuse the Issue Register (a log of actual issues) with the Change Management Approach (the plan for how issues and changes are managed), leading them to select Option A instead of the correct document that defines the process.

How to eliminate wrong answers

Option A is wrong because the Issue Register is a log that records individual issues as they occur, not a document that defines the overall management approach for issues and changes. Option B is wrong because the Business Case provides the justification for the project and outlines costs, benefits, and risks, but it does not specify the procedures for managing issues and changes. Option D is wrong because the Project Plan describes how the project will be executed, including timelines and resources, but it does not define the governance for handling issues and changes.

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425

MCQeasy

Who is responsible for approving the Project Plan?

A.Senior User

B.Project Manager

C.Project Board

D.Executive

AnswerC

The Project Board approves the Project Plan.

Why this answer

The Project Plan is approved by the Project Board as part of the PID approval.

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426

MCQeasy

Which document describes the quality management approach for the project, including quality assurance and quality control activities?

A.Quality Register

B.Project Plan

C.Quality Management Approach

D.Product Description

AnswerC

Defines the project-specific quality management strategy.

Why this answer

The Quality Management Approach is the correct document because it defines the project's quality management strategy, including both quality assurance (systematic checks to ensure the project is using appropriate processes) and quality control (specific activities to verify that products meet their quality criteria). This is a key PRINCE2 management product that sets out how quality will be planned, performed, and governed throughout the project lifecycle.

Exam trap

The trap here is that candidates often confuse the Quality Management Approach (the 'how' and 'what' of quality strategy) with the Quality Register (the 'record' of quality activities), leading them to select the register instead of the approach document.

How to eliminate wrong answers

Option A is wrong because the Quality Register is a log that records all planned and completed quality activities and their results; it does not describe the overall approach or strategy for quality management. Option B is wrong because the Project Plan provides the overall schedule, cost, and resource baselines, but it does not detail the specific quality assurance and quality control activities; those are defined in the Quality Management Approach. Option D is wrong because a Product Description specifies the purpose, composition, derivation, format, and quality criteria for a single product, not the overarching quality management approach for the entire project.

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427

MCQmedium

A Project Manager receives a Checkpoint Report from a Team Manager. What should the Project Manager do with this information?

A.Use it to update the Stage Plan and prepare the Highlight Report

B.File it without action as it is only for information

C.Forward it directly to the Project Board

D.Send it to Project Assurance for review

AnswerA

Checkpoint Reports provide detailed progress that feeds into the Highlight Report.

Why this answer

The Project Manager uses Checkpoint Reports to monitor progress and compile the Highlight Report for the Project Board.

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428

MCQeasy

What is the purpose of the Directing a Project process?

A.To produce the Project Plan

B.To manage the day-to-day activities of the project

C.To ensure that project products are delivered on time

D.To enable the Project Board to make key decisions and exercise overall control

AnswerD

This is the correct purpose.

Why this answer

The Directing a Project process is designed to enable the Project Board to make key decisions and exercise overall control over the project, from initiation through closure. It provides a framework for the Board to authorize project initiation, approve stage plans, monitor progress via highlight reports, and authorize closure, ensuring strategic alignment and governance.

Exam trap

PeopleCert often tests the distinction between the Project Board's strategic control (Directing a Project) and the Project Manager's tactical execution (Controlling a Stage), leading candidates to confuse day-to-day management with overall governance.

How to eliminate wrong answers

Option A is wrong because producing the Project Plan is the responsibility of the Project Manager during the Initiating a Project process, not the Directing a Project process. Option B is wrong because managing day-to-day activities is the role of the Project Manager within the Controlling a Stage process, not the Board. Option C is wrong because ensuring timely delivery of project products is an operational concern managed by the Project Manager through stage plans and work packages, not a direct purpose of the Board's directing role.

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429

MCQhard

During a stage, the Project Manager receives a Checkpoint Report from a Team Manager. What is the primary purpose of this report?

A.To communicate progress of a Work Package to the Project Manager

B.To request changes to the Work Package

C.To escalate issues that cannot be resolved at team level

D.To inform the Project Board of stage progress

AnswerA

The Checkpoint Report is from Team Manager to Project Manager.

Why this answer

A Checkpoint Report is a progress report from the Team Manager to the Project Manager, typically covering the frequency defined in the Work Package.

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430

MCQeasy

Which role is responsible for defining the project's acceptance criteria?

A.Project Manager

B.Project Board

C.Senior User

D.Executive

AnswerC

The Senior User defines the acceptance criteria on behalf of the users.

Why this answer

The Senior User is responsible for defining the project's acceptance criteria because they represent the interests of those who will use the project's products. Acceptance criteria specify the conditions that must be met for the project's outputs to be accepted by the users, and the Senior User ensures these criteria reflect actual user needs and business requirements. This role is defined in PRINCE2's 'Business Case' and 'Quality' management products, where the Senior User provides the user perspective on quality expectations.

Exam trap

PRINCE2 often tests the distinction between who defines versus who approves acceptance criteria, trapping candidates who confuse the Senior User's definition role with the Project Board's approval authority.

How to eliminate wrong answers

Option A is wrong because the Project Manager is responsible for managing the project on a day-to-day basis and producing the Project Plan, but they do not define acceptance criteria; they facilitate the process but the Senior User owns the user requirements. Option B is wrong because the Project Board is the decision-making body that approves the acceptance criteria, but the definition is provided by the Senior User, not the Board itself. Option D is wrong because the Executive is accountable for the business case and overall project success, but defining acceptance criteria is a user-focused responsibility, not a business or executive one.

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431

Multi-Selecthard

Which THREE of the following are purposes of the Highlight Report?

Select 3 answers

A.To highlight the achievements and next-period plans

B.To provide a summary of progress during a management stage

C.To inform the Project Board of any issues or risks that need their attention

D.To provide a full review of the stage and recommend changes for the next stage

E.To provide a detailed account of Work Package progress to the Project Manager

AnswersA, B, C

The report includes accomplishments and plans for the next period.

Why this answer

The Highlight Report is used to provide the Project Board with a summary of progress during a management stage, highlighting achievements and next-period plans, and informing them of any issues or risks requiring attention. Therefore, options A, B, and C are correct. Option D describes the purpose of the End Stage Report, which provides a full review of the stage and recommendations for the next stage.

Option E describes the purpose of the Checkpoint Report, which provides a detailed account of Work Package progress to the Project Manager.

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432

MCQhard

In the Organizing practice, what is the role of Project Assurance?

A.To perform administrative tasks for the Project Manager

B.To manage the project on behalf of the Project Board

C.To provide independent monitoring of the project's progress and adherence to standards

D.To represent the users' interests

AnswerC

Correct.

Why this answer

Project Assurance provides independent oversight, not management or support. It checks that the project is being run correctly.

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433

Multi-Selectmedium

Which TWO are types of issue in PRINCE2?

Select 2 answers

A.Opportunity

B.Request for Change

C.Off-specification

D.Risk

E.Constraint

AnswersB, C

An RFC is an issue type.

Why this answer

In PRINCE2, an issue is a relevant event that has occurred and requires management attention. The two defined types of issue are Request for Change (a proposal for a change to the product's specification or baseline) and Off-specification (something that should be provided but is not, or is provided incorrectly). These are formally documented and managed through the issue and change control procedure.

Exam trap

The trap here is that candidates confuse the PRINCE2 definitions of 'issue' and 'risk', often selecting 'Risk' as an issue type because both involve potential problems, but PRINCE2 strictly separates them based on whether the event has already occurred (issue) or is uncertain (risk).

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434

MCQmedium

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.Continue with the current Stage Plan and report the cost overrun in the next Highlight Report

D.Raise an Exception Report to the Project Board and await their direction before proceeding

AnswerD

This is the correct action when a stage tolerance is forecast to be exceeded.

Why this answer

In PRINCE2, when a project forecasts exceeding its cost tolerance, the Project Manager must escalate the issue to the Project Board via an Exception Report. This is because tolerances are delegated authority limits; exceeding them requires the Project Board's decision to either approve a revised plan or take corrective action. Option D correctly follows the PRINCE2 exception management process, ensuring governance and control are maintained.

Exam trap

A common mistake is to think the Project Manager can handle cost overruns within their own authority or by simply reporting later, but PRINCE2 mandates immediate escalation via an Exception Report when tolerances are forecast to be exceeded.

How to eliminate wrong answers

Option A is wrong because closing the project immediately is premature; the Business Case may still be viable if the Project Board approves a revised tolerance or plan. Option B is wrong because the Project Manager cannot unilaterally increase the budget; budget changes require Project Board approval as they affect the Business Case. Option C is wrong because continuing without escalation violates the management by exception principle; the Project Manager must report the forecast overrun immediately via an Exception Report, not wait for the next Highlight Report.

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435

MCQeasy

Who is responsible for providing independent assurance that the project is being managed correctly?

A.Team Manager

B.Project Board (via Project Assurance)

C.Project Manager

D.Project Support

AnswerB

Correct: Project Assurance is independent of management.

Why this answer

In PRINCE2, the Project Board is ultimately accountable for the project's success, and it delegates the task of providing independent assurance to the Project Assurance role. This ensures that the project is being managed correctly, in line with the business case, and that all management stages are compliant with PRINCE2 principles. The Project Board (via Project Assurance) is the correct answer because it is the only role with the authority to provide objective, independent oversight, separate from the day-to-day management performed by the Project Manager.

Exam trap

The trap here is that candidates often confuse the Project Manager's role in managing the project with the need for independent oversight, leading them to select the Project Manager (Option C) instead of recognizing that assurance must come from a separate, independent role (Project Assurance) delegated by the Project Board.

How to eliminate wrong answers

Option A is wrong because the Team Manager is responsible for delivering the products within a work package, not for providing independent assurance; their focus is on technical execution, not governance. Option C is wrong because the Project Manager is responsible for the day-to-day management of the project, including planning and control, but cannot provide independent assurance as they are directly involved in the project's execution, creating a conflict of interest. Option D is wrong because Project Support provides administrative and advisory services (e.g., planning tools, risk log maintenance) but has no authority to give independent assurance; it is a service function, not a governance role.

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436

Multi-Selectmedium

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

Select 2 answers

A.Off-specification

B.Opportunity

C.Risk

D.Change budget

E.Request for Change

AnswersA, E

Correct issue type.

Why this answer

PRINCE2 defines three issue types: Request for Change, Off-specification, and Problem/Concern. 'Risk' and 'Change budget' are not issue types.

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437

MCQhard

What is the purpose of the Quality Review technique in PRINCE2?

A.To approve the Stage Plan

B.To assess whether a product is fit for purpose and identify any defects

C.To create the Product Description

D.To update the Risk Register

AnswerB

This is the purpose of the Quality Review technique.

Why this answer

The Quality Review technique in PRINCE2 is a structured assessment to evaluate whether a product meets its defined quality criteria and is fit for purpose. Its primary purpose is to identify defects and ensure the product is complete and correct before it is approved for use. This aligns with option B, as the review focuses on verifying product quality rather than planning or risk management.

Exam trap

The trap here is that candidates confuse the Quality Review technique with other management activities, such as planning or risk management, because PRINCE2 integrates quality checks into multiple processes, but the review's sole purpose is product assessment and defect identification.

How to eliminate wrong answers

Option A is wrong because approving the Stage Plan is a function of the Project Board, not the Quality Review technique; the review assesses products, not plans. Option C is wrong because the Product Description is created during product-based planning, not by the Quality Review technique; the review uses the Product Description as a reference to check quality. Option D is wrong because updating the Risk Register is part of the Risk Management practice, not the Quality Review technique; the review focuses on product defects, not risk identification or updates.

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438

MCQeasy

Which document describes the quality methods and tools to be used on a project?

A.Quality Register

B.Product Description

C.Quality Management Approach

D.Project Plan

AnswerC

This document describes how quality will be managed on the project.

Why this answer

The Quality Management Approach defines the quality procedures, techniques, and responsibilities for the project.

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439

MCQhard

In PRINCE2, what is the difference between a risk owner and a risk actionee?

A.The risk owner owns the risk budget; the risk actionee does not

B.The risk owner is a senior role; the risk actionee is a team role

C.The risk owner is responsible for managing the risk; the risk actionee is responsible for implementing the response actions

D.There is no difference; the terms are interchangeable

AnswerC

Correct. Owner: management; Actionee: implementation.

Why this answer

The risk owner manages the risk overall; the risk actionee performs specific actions.

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440

MCQhard

In PRINCE2, what is the difference between a risk owner and a risk actionee?

A.Risk owner and risk actionee are the same role

B.Risk owner is accountable for managing the risk; risk actionee carries out the response actions

C.Risk owner identifies risks; risk actionee assesses them

D.Risk owner is a role on the Project Board; risk actionee is a team member

AnswerB

Correct distinction.

Why this answer

The risk owner manages the risk and is accountable for its management. The risk actionee carries out specific actions but is not accountable. This is a key distinction in PRINCE2 risk practice.

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441

MCQmedium

Which document is created during the Initiating a Project process and provides a baseline against which the project is managed?

A.Project Initiation Documentation (PID)

B.Project Brief

C.Project Plan

D.Business Case

AnswerA

Correct. The PID is the key output of the Initiating a Project process and serves as the baseline.

Why this answer

The Project Initiation Documentation (PID) is the key document created during the Initiating a Project process. It provides a comprehensive baseline that defines the project's scope, objectives, approach, and controls, against which the project's progress and performance are managed throughout its lifecycle.

Exam trap

The trap here is that candidates often confuse the Project Brief (created earlier) with the PID, or mistake a single component like the Business Case or Project Plan as the complete baseline, when the PID is the integrated set of documents that collectively form the management baseline.

How to eliminate wrong answers

Option B is wrong because the Project Brief is created during the Starting Up a Project process, not Initiating a Project, and it serves as an input to the initiation stage, not as the baseline for management. Option C is wrong because the Project Plan is a component within the PID, not the overarching baseline document; it details the schedule and resources but does not alone provide the full management baseline. Option D is wrong because the Business Case is a key component of the PID that justifies the project, but it is not the complete baseline document; the PID includes the Business Case along with other elements like the project plan, risk register, and controls.

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442

MCQhard

During a stage, the Team Manager identifies a problem that affects the quality of a product. The product description specifies a quality criterion that cannot be met. What type of issue is this?

A.Problem/concern

B.Risk

C.Request for change

D.Off-specification

AnswerD

An off-specification is when a product does not meet its specification.

Why this answer

This is an Off-specification because the product cannot meet a defined quality criterion specified in the product description. In PRINCE2, an off-specification is a type of issue that occurs when a product's actual or forecast quality does not match its agreed specification. The Team Manager has identified a deviation from the baseline, which is the defining characteristic of an off-specification.

Exam trap

PRINCE2 often tests the distinction between an off-specification and a request for change; the trap here is that candidates confuse a failure to meet a specification (off-specification) with a proposal to alter the specification (request for change).

How to eliminate wrong answers

Option A is wrong because a problem/concern is a generic issue that may not involve a deviation from a specification; this scenario specifically involves a failure to meet a defined quality criterion, which is an off-specification. Option B is wrong because a risk is an uncertain event that has not yet occurred, whereas here the problem has already been identified and is affecting a current product. Option C is wrong because a request for change is a proposal for a modification to a product or baseline, not a failure to meet an existing specification; the issue here is that the specification cannot be met, not that a change is being requested.

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443

Multi-Selectmedium

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

Select 3 answers

A.Request for Change

B.Problem/Concern

C.Risk

D.Off-specification

E.Change

AnswersA, B, D

An RFC is a proposal to change a baseline.

Why this answer

Options A, B, and D are correct. The three types of issue are: Request for Change (RFC), Off-specification, and Problem/Concern. 'Risk' is not an issue; it is a potential future event. 'Change' is a general term, not a specific type.

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444

MCQmedium

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

A.Ask the Project Board for more tolerance

B.Close the project

C.Continue with the current plan and report in the next Highlight Report

D.Raise an Exception Report to the Project Board

AnswerD

Correct. Escalate via Exception Report.

Why this answer

D is correct because PRINCE2 requires the Project Manager to escalate any forecast deviation beyond tolerance to the Project Board via an Exception Report. This triggers a formal decision process, ensuring the board can authorize corrective action before the situation worsens.

Exam trap

The trap here is that candidates may think the Project Manager can simply request more tolerance or continue reporting normally, failing to recognize that PRINCE2 mandates immediate escalation via an Exception Report when tolerance is forecast to be exceeded.

How to eliminate wrong answers

Option A is wrong because asking for more tolerance bypasses the formal escalation process; the board can only grant tolerance after receiving an Exception Report and assessing the situation. Option B is wrong because closing the project is a premature, drastic action that ignores the PRINCE2 principle of continued business justification and the board's authority to decide on project continuation. Option C is wrong because continuing with the current plan and waiting for the next Highlight Report violates the management by exception principle; the Project Manager must escalate immediately when tolerance is forecast to be exceeded, not defer reporting.

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445

MCQeasy

Which role is responsible for defining the project's acceptance criteria?

A.Project Manager

B.Executive

C.Senior User

D.Senior Supplier

AnswerC

The Senior User defines acceptance criteria on behalf of the users.

Why this answer

The Senior User is responsible for defining the acceptance criteria as they represent the users who will accept the final product.

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446

MCQmedium

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

A.Project Brief

B.Business Case

C.Project Plan

D.Project Initiation Documentation

AnswerD

The PID is the key output of Initiating a Project.

Why this answer

The Initiating a Project process is where the Project Board and Project Manager agree on the detailed planning required to deliver the project. The key output is the Project Initiation Documentation (PID), which consolidates all the baselines (including the Business Case, Project Plan, and Project Brief) into a single, approved document that defines what the project will deliver, how it will be delivered, and the controls to be applied. Without the PID, the project cannot proceed to the next stage.

Exam trap

A common trap in PRINCE2 Foundation exams is confusing the inputs and outputs of the Initiating a Project process. Candidates often mistake the Project Brief (an input) or the Business Case (a component of the PID) for the key output, which is the Project Initiation Documentation (PID). The PID is the consolidated, approved document that authorizes the project to proceed.

How to eliminate wrong answers

Option A is wrong because the Project Brief is created during the Starting Up a Project process, not during Initiating a Project; it is an input to the Initiating a Project process, not its key output. Option B is wrong because the Business Case is a component of the PID, but it is not the key output of the Initiating a Project process; the PID as a whole is the output. Option C is wrong because the Project Plan is also a component of the PID, but the PID itself is the comprehensive document that includes the Project Plan, not the standalone output.

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447

MCQmedium

In PRINCE2, who is responsible for ensuring that project assurance is independent of the Project Manager?

A.The Project Support

B.The Senior User

C.The Project Board

D.The Project Manager

AnswerC

The Project Board ensures assurance is independent.

Why this answer

The Project Board is responsible for ensuring that project assurance is independent of the Project Manager, making Option C the correct answer.

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448

MCQhard

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

A.Project Assurance focuses on risks; Project Support focuses on quality

B.There is no difference

C.Project Assurance is performed by the Project Board; Project Support is performed by the Project Manager

D.Project Assurance is independent of the Project Manager; Project Support assists the Project Manager

AnswerD

Assurance is independent; support is administrative help.

Why this answer

Project Assurance provides an independent check that the project is being conducted properly, reporting directly to the Project Board, while Project Support assists the Project Manager with administrative and coordination tasks. This separation ensures objectivity in oversight without compromising the Project Manager's authority.

Exam trap

The trap here is confusing the independence of Project Assurance with the support role of Project Support, leading candidates to incorrectly think Project Assurance is performed by the Project Board (Option C) or that the two roles are interchangeable (Option B).

How to eliminate wrong answers

Option A is wrong because Project Assurance covers all aspects of the project (including business, user, and supplier perspectives), not just risks, and Project Support handles administrative tasks, not solely quality. Option B is wrong because Project Assurance and Project Support have distinct roles: Assurance is independent oversight, Support is administrative assistance. Option C is wrong because Project Assurance is performed by individuals independent of the Project Manager (often from the Project Board or external), but Project Support is performed by a separate role or team, not by the Project Manager themselves.

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449

MCQmedium

Which product describes the quality methods and tools to be used during the project?

A.Project Product Description

B.Quality Management Strategy

C.Quality Register

D.Quality Management Approach

AnswerD

This is the correct term for the approach to quality.

Why this answer

The Quality Management Approach defines how quality will be managed, including methods and tools.

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450

Multi-Selectmedium

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

Select 2 answers

A.Opportunity

B.Lesson

C.Request for Change

D.Risk

E.Off-specification

AnswersC, E

An RFC is a type of issue.

Why this answer

In PRINCE2, an issue is a relevant event that has occurred and requires management attention. The three defined types of issue are Request for Change (C), Off-specification (E), and Problem/Concern. Option C is correct because a Request for Change is a formal proposal for a modification to a product's specification or baseline, which is a standard type of issue in the PRINCE2 issue management procedure.

Exam trap

The trap here is that candidates confuse 'issue' with 'risk' or 'lesson', but PRINCE2 strictly defines issues as events that have occurred, while risks are uncertain future events and lessons are retrospective learning points.

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