CCNA PRINCE2 Practices Questions

75 of 674 questions · Page 7/9 · PRINCE2 Practices · Answers revealed

451
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 maintains the Business Case on behalf of the Executive, but the Executive (SRO) owns it. However, the question asks who maintains it, which is the Project Manager.

452
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

A Request for Change proposes a modification to agreed products; an Off-specification is a product that does not meet its specification.

453
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

Enhance is the response for opportunities that seeks to increase the probability or impact of the opportunity.

454
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.

455
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.

456
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 issue types: Request for Change, Off-specification, and Problem/Concern. Options A and B are correct; the others are not types of issue.

457
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.

458
Multi-Selectmedium

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

Select 2 answers
A.Project Plan
B.End Stage Report
C.Business Case
D.Work Package
E.Highlight Report
AnswersA, C

Part of the PID produced in Initiating a Project.

Why this answer

The Initiating a Project process produces the Project Initiation Documentation (PID), which includes the Project Plan and Business Case. The Highlight Report is from Controlling a Stage, and the Work Package is from Managing Product Delivery.

459
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.

460
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

Option A is correct because 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.

461
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 Directing a Project process includes the 'Authorize Initiation' activity, where the Project Board gives approval to start initiation.

462
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

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.

463
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.

464
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 Plan and Business Case are components of the PID. Options B and D are correct.

465
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.

466
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.

467
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.

468
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.

469
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.

470
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.

471
MCQeasy

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

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

The Executive owns the Business Case and is responsible for ensuring business justification is maintained throughout the project.

Why this answer

Option A is correct. The Executive owns the Business Case and is responsible for ensuring it remains viable. The Project Manager maintains it on a day-to-day basis but the Executive has ultimate accountability.

Option B is wrong because the Project Manager maintains it but is not responsible for its ongoing viability. Option C is wrong because the Senior User is a role on the Project Board, not the owner of the Business Case. Option D is wrong because Project Assurance provides independent oversight, not business justification.

472
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.

473
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

A Checkpoint Report is prepared by the Team Manager and given to the Project Manager to report progress at regular intervals (e.g., weekly).

474
Multi-Selecteasy

Which TWO are roles that are part of the Project Board?

Select 2 answers
A.Project Manager
B.Project Assurance
C.Team Manager
D.Senior User
E.Executive (Senior Responsible Owner)
AnswersD, E

The Senior User represents user interests.

Why this answer

The Project Board consists of Executive (Senior Responsible Owner), Senior User, and Senior Supplier.

475
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.

476
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.

477
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

The PRINCE2 opportunity responses are Exploit, Enhance, Share, and Reject. Avoid and Reduce are threat responses.

478
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

The Change Management Approach document is created during initiation to define how issues, changes, and configuration management will be handled.

479
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.

480
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 defines how quality will be managed on the project, including assurance and control activities. The Project Plan includes overall schedule, and the Quality Register records results.

481
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.

482
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

Directing a Project enables the Project Board to make key decisions and exercise overall control.

483
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.

484
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 specifying user requirements and acceptance criteria. The Executive focuses on business justification, the Project Manager on delivery, and the Project Board on overall direction.

485
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, including achievements, next steps, and issues. Option A, C, and D are correct. Option B is the purpose of the Checkpoint Report.

Option E is the purpose of the End Stage Report.

486
Multi-Selectmedium

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

Select 2 answers
A.The quality register
B.The quality responsibilities of the project management team
C.The project assurance responsibilities
D.The quality review technique
E.The quality methods and tools to be used
AnswersB, E

Correct. Responsibilities are defined in the quality management approach.

Why this answer

The quality management approach includes the quality responsibilities of the project team (option A) and the quality methods and tools to be used (option C). The quality register is a log, not part of the approach; the quality review technique is a method but the approach includes overall methods; project assurance is a role, not a component of the approach.

487
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.

488
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

Issue types are: Request for Change, Off-specification, and Problem/Concern.

489
MCQmedium

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

A.A Request for Change is always accepted, while an Off-specification is always rejected
B.A Request for Change is submitted by the Project Board, while an Off-specification is submitted by the Project Manager
C.A Request for Change proposes a change to a baseline, while an Off-specification is a product that does not meet its specification
D.A Request for Change must be approved by the Project Board, while an Off-specification can be approved by the Project Manager
AnswerC

This is the correct distinction.

Why this answer

A Request for Change is a proposal to change a baseline, while an Off-specification is a deviation from an agreed baseline that already exists.

490
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

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

491
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

Project Assurance is a Project Board responsibility, delegated to independent individuals to ensure objectivity.

492
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.

493
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.

494
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.

495
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.

496
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.

497
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 output of the Initiating a Project process. It defines the project's scope, objectives, and plan, and is used as a baseline for management decisions.

498
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 an agreed product is not meeting its specification. A problem/concern is a general issue, but this is specifically an off-specification.

499
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 B, C, 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.

500
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 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 owns it.

501
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.

502
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.

503
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 Project Initiation Documentation (PID) is the key output of the Initiating a Project process. It provides the foundation for the project and is used by the Project Board to decide whether to authorize the project.

504
Multi-Selectmedium

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

Select 2 answers
A.Quality criteria
B.Product Breakdown Structure
C.Investment appraisal
D.Expected benefits
E.Risk register
AnswersC, D

Yes, investment appraisal is part of the Business Case.

Why this answer

The Business Case includes expected benefits, dis-benefits, costs, timescale, and investment appraisal. Options A and E are correct.

505
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. Option D is correct.

506
MCQeasy

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

A.To initiate the project and produce the Project Initiation Documentation
B.To close the project and hand over the product
C.To control the day-to-day activities of the project stage
D.To provide the Project Board with information to approve the next stage
AnswerD

Managing a Stage Boundary enables the Board to review progress and approve the next stage.

Why this answer

The purpose is to provide the Project Board with information to review the current stage, approve the next stage plan, and update the project plan and Business Case.

507
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 is independent and checks that the project is being conducted properly, while Project Support provides administrative and advisory services.

508
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.

509
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

PRINCE2 defines three types of issue: Request for Change, Off-specification, and Problem/Concern. Therefore, RFC and Off-spec are correct.

510
MCQmedium

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

A.To update the Business Case based on the latest stage performance
B.To enable the Project Board to review the current stage, approve the next stage plan, and confirm continued business justification
C.To plan the next stage and update the Project Plan
D.To produce the End Project Report
AnswerB

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

Why this answer

Option D is correct. The purpose is to provide the Project Board with sufficient information to review the current stage, approve the next stage plan, and confirm continued business justification. Option A is wrong because the purpose is not to update the Business Case, but to review it.

Option B is wrong because the next stage plan is created in this process. Option C is wrong because the End Project Report is created in Closing a Project.

511
MCQhard

A risk has been identified that, if it occurs, could improve the project's likelihood of achieving its objectives. What type of risk is this, and which response is appropriate?

A.Threat; Transfer
B.Opportunity; Reject
C.Threat; Avoid
D.Opportunity; Exploit
AnswerD

An opportunity that could improve objectives should be exploited.

Why this answer

An opportunity is a risk that could have a positive effect on objectives. 'Exploit' is the appropriate response to make the opportunity happen.

512
Multi-Selectmedium

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

Select 2 answers
A.Authorizing the start of each stage
B.Defining the project's acceptance criteria
C.Providing day-to-day management of the project
D.Approving the Project Plan
E.Providing independent assurance
AnswersA, D

The Project Board authorizes stage starts based on stage plans.

Why this answer

The Project Board is accountable for the project's success and makes key decisions. Providing day-to-day management and assurance are separate roles.

513
MCQmedium

Which document is produced during the Initiating a Project process and provides a baseline against which the project's progress can be measured?

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

The PID is the comprehensive baseline document created during Initiating a Project.

Why this answer

The Project Initiation Documentation (PID) is the key output of the Initiating a Project process and serves as the baseline for the project.

514
MCQhard

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

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

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 the principle of management by exception.

515
Multi-Selectmedium

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

Select 2 answers
A.Design the Risk Management Approach
B.Produce Highlight Reports
C.Approve Stage Plans
D.Provide assurance
E.Manage Work Packages
AnswersC, D

The Project Board approves Stage Plans.

Why this answer

The Project Board provides overall direction and makes key decisions. Approving stage plans and providing assurance are board responsibilities. Managing Work Packages is a Project Manager role; reporting progress is a team role; designing the risk management approach may be delegated.

516
MCQhard

A project manager is creating the project product description. Which practice does this document belong to?

A.Business Case practice
B.Plans practice
C.Risk practice
D.Quality practice
AnswerA

The project product description is part of the Business Case practice, defining the product's scope and quality criteria.

Why this answer

The project product description is a key document that defines the project's scope, acceptance criteria, and quality expectations, which directly supports the Business Case practice by ensuring the project's outputs align with the justification for undertaking the project. It is created during the Initiating a Project process and is used to confirm that the project remains viable and aligned with the business case throughout its lifecycle.

Exam trap

PeopleCert often tests the distinction between the project product description and the quality management approach, leading candidates to incorrectly associate it with the Quality practice instead of the Business Case practice.

How to eliminate wrong answers

Option B (Plans practice) is wrong because the project product description is not a plan; it describes the final product, whereas the Plans practice focuses on defining how and when the project's objectives will be achieved through management and delivery plans. Option C (Risk practice) is wrong because the project product description does not address risk identification, assessment, or response planning; those are handled in the risk register and risk management approach. Option D (Quality practice) is wrong because while the project product description includes quality expectations and acceptance criteria, it is not a quality management document itself; the Quality practice is governed by the quality management approach and quality register.

517
MCQhard

Which of the following is NOT an opportunity response in PRINCE2?

A.Enhance
B.Exploit
C.Avoid
D.Share
AnswerC

Avoid is a threat response.

Why this answer

Avoid is a threat response, not an opportunity response. The opportunity responses are exploit, enhance, share, and reject.

518
MCQmedium

In the product-based planning approach, what is the purpose of the Product Breakdown Structure (PBS)?

A.To define the quality criteria for each product
B.To show the order in which products will be created
C.To provide the cost estimate for each product
D.To identify all the products needed for the project
AnswerD

The PBS provides a complete list of all deliverables in a hierarchical structure.

Why this answer

The PBS is a hierarchical decomposition of all products to be created. It helps identify all deliverables. The Product Flow Diagram shows dependencies, and Product Descriptions define quality criteria.

The Project Plan is not a direct output of the PBS.

519
MCQmedium

Which PRINCE2 management product is used to capture lessons throughout the project?

A.End Project Report
B.Quality Register
C.Lessons Log
D.Lessons Report
AnswerC

The Lessons Log captures lessons continuously.

Why this answer

The Lessons Log is used to capture lessons as they arise. The Lessons Report is produced at the end of a stage or project.

520
MCQeasy

In PRINCE2, who is responsible for the Business Case?

A.The Senior Supplier
B.The Project Manager
C.The Senior User
D.The Executive
AnswerD

The Executive owns the Business Case and is accountable for it throughout the project.

Why this answer

The Executive is the single individual responsible for the Business Case in PRINCE2. They own the project's justification and ensure it remains viable throughout the project lifecycle, approving any changes that affect its viability. The Business Case is the Executive's primary accountability, as defined in the PRINCE2 manual.

Exam trap

The trap here is that candidates often confuse the Project Manager's role in maintaining the Business Case with ownership, but PRINCE2 explicitly assigns accountability to the Executive, not the manager who writes or updates it.

How to eliminate wrong answers

Option A is wrong because the Senior Supplier represents the supplier's interests and is responsible for the quality of products, not the Business Case. Option B is wrong because the Project Manager manages the day-to-day creation and maintenance of the Business Case document but does not own it; accountability rests with the Executive. Option C is wrong because the Senior User represents the users' needs and is responsible for specifying benefits, but the overall Business Case ownership belongs to the Executive.

521
MCQmedium

Which risk response is appropriate for a threat that the project team decides to proactively manage by reducing the probability or impact?

A.Reduce
B.Avoid
C.Transfer
D.Accept
AnswerA

Reduce means taking action to lower probability or impact.

Why this answer

The 'Reduce' response aims to reduce probability or impact of a threat. Option B is correct.

522
MCQmedium

Which risk response is appropriate for a threat that can be mitigated by transferring the financial impact to a third party?

A.Avoid
B.Reduce
C.Transfer
D.Accept
AnswerC

Correct. Transfer shifts the financial impact.

Why this answer

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

523
MCQhard

Which of the following describes the relationship between Project Assurance and Project Support?

A.Project Assurance is independent; Project Support provides admin services
B.Project Assurance reports to the Project Manager; Project Support reports to the Project Board
C.Project Assurance and Project Support are the same role
D.Project Assurance is part of Project Support
AnswerA

Correct. Assurance is independent from management; support is administrative.

Why this answer

Project Assurance is an independent role that provides objective oversight to ensure the project remains viable and compliant with PRINCE2 principles, while Project Support is an administrative role that handles tasks like planning tools, filing, and configuration management. The independence of Project Assurance from the Project Manager is critical to avoid conflicts of interest, whereas Project Support serves the Project Manager and the team. This separation ensures that assurance activities are unbiased and that support services are efficient.

Exam trap

The trap here is that candidates confuse the reporting lines and independence of Project Assurance, mistakenly thinking it reports to the Project Manager or is part of Project Support, when in fact PRINCE2 mandates that Project Assurance must be independent and report to the Project Board.

How to eliminate wrong answers

Option B is wrong because Project Assurance reports to the Project Board, not the Project Manager, and Project Support reports to the Project Manager, not the Project Board. Option C is wrong because Project Assurance and Project Support are distinct roles with different objectives: assurance provides independent oversight, while support provides administrative services. Option D is wrong because Project Assurance is not a subset of Project Support; they are separate functions, and combining them would compromise the independence required for assurance.

524
MCQeasy

According to PRINCE2, who is responsible for maintaining the Business Case throughout the project?

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

The Project Manager maintains the Business Case throughout the project.

Why this answer

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

525
MCQeasy

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

A.Project Assurance
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 is responsible for maintaining the Business Case, ensuring it remains viable and aligned with project progress. The Executive owns the Business Case but delegates maintenance to the Project Manager.

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